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Self employed?

Discussion in 'Personal' started by giraffe, Jun 25, 2011.

  1. giraffe

    giraffe New commenter

    If nothing turns up, I'm thinking ofgoing self-employed doing some painting, writing and tutoring.
    I've already been asked to do Language tutoring for an Asian friend, and was going to do it for free - they have offered to pay me going rate and I was thinking there must be several others who would pay too.
    I have always wanted to do Art Activity days in school - storytelling/poetry/science/history and art with music - but don't think schools have money to spend on those things nowadays, do they?
    What would I need? Public liability insurance? Business insurance on my car? Do my own tax - what does that involve? Pay NI myself? Get a pension - can TPS be transferred or do ex-teachers leave it there to brew?
    Any other considerations?
     
  2. magic surf bus

    magic surf bus Star commenter

    Mrs MSB went self-employed just over a year ago, and does training, consultancy, staff meetings and other such stuff for LEA schools, who do have some money for such things but the quality and relevance has to be spot on. We all know what **** INSET days can be like. One thing though, Mrs MSB did some advisory work beforehand so she'd built up a network of contacts and a good reputation in schools. Going in cold might be more challenging.

    Public Liability Insurance is advisable, Business insurance on car essential, Self employed NI is a piddling sum you pay each month by standing order. You should get a business account with your bank, pay earnings into it, then transfer money out of it infrequently, as they can charge you for it. Tax is paid 12 months in arrears, ie you can trade for 12 months before even thinking about paying tax, but if you're cautious you'll keep a reserve of 20-25% of earnings back in an interest-earning account for tax purposes. Can't say we've done the Tax form filling yet but she's got a friendly accountant to advise her, and she's keeping all her receipts so she can claim as much as possible back against Tax. You can also claim proportions of some household bills if you work from home and use a room as an office. One thing to watch out for - if you conduct business at home in the sense of inviting customers/clients into your home, or storing materials in quantity you need to double check if your home insurance policy and property deeds allow it. Probably best to leave TPS where it is if you've been in it any length of time, unless you're prepared to lock substantial sums of money up in long term investments.
     
  3. giraffe

    giraffe New commenter

    Very useful and comprehensive reply
    Thank you
     
  4. littlemissraw

    littlemissraw Occasional commenter

    I started up a business in Jan.
    Needed Proffesional Indemnity Ins, Public Liability, Business Usage on the car.
    If you're earning less than £7400 (I think that the new limit) you don't have to pay any NI as you can claim small earnings exception although this means you can't claim benefits etc if you need to and is usually only advisable if you have another job alongside.
    You need to register with HMRC as soon as you start advertising otherwise you could face a fine.
    PM me if you want any help xx

     

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