4 things to consider before becoming self-employed
Are you freelance or will you create a LTD company?
This is important because it will change the way you are paid and entitle you to different benefits. Basically it means whether you create a company and then pay yourself a salary, or whether people pay you for your services. Make sure you read into both and the tax implications for each. Particularly during furlough, there were restrictions for LTD companies so those unable to work during the pandemic would have struggled.
Don't forget your self-employed pension
It's so easy for freelancers to forget that with freedom comes responsibility and that comes in the form of organising your own national insurance and pension contributions. Without your workplace paying into your pension, you will be left to set it up and ensure you're paying into it consistently or you may regret it later. It's also a good idea to research pensions that are specifically designed for freelancers or self-employed people as they may come with specific benefits.
Get income protection
Keep all your receipts and create income/outgoings spreadsheets
The least fun part of working for yourself – taxes! Everyone who is self-employed and earns over £1,000 per year is required by law to file a self-assessment tax return. Whether you do this yourself, or get an accountant/book-keeper, it is important that you keep records of everything. That means all your income, plus any expenditures, all need to be clearly logged with receipts. Trust me, future you will thank past you for doing it right from the beginning and keeping everything neatly organised.