CAREER PURSUIT

IT equipment Other equipment Specialist clothing Rental of space to work Marketing Stationery Vehicle Licences/permits Stock Logo/design work Start-up advice (accountant, mentor, specialist YOUR TIME Insurance (business indemnity, specialist) Private pension cost consultant) · Now add all THOSE up, and see if you have enough money saved or coming in to afford to pay for it all. ON TOP OF THAT, think about the fact that you will not get the same benefits that employed people do: sick pay, annual leave pay, workplace pension, company maternity leave (you will eventually be entitled to the statutory maternity pay, but many companies offer more) and any other company perks that your industry would usually provide. Now – if you are still happy you can afford it, then great! Let’s get going. THINGS YOU NEEDS TO KNOW When do I register for self-assessment? When you think your sole trader income will be more than £ 1000 a year (income means the amount of money you have earned BEFORE any expenses are taken off). 22 C A R E E R P U R S U I T 2 0 2 0 When do I have to pay tax? Everyone has to pay tax when they earn more than £ 12 , 500 (at the time of writing). Before then, your earnings are tax-free. Can I get financial help to start my business? Maybe! HMRC have a finance finder tool: https://www.gov.uk/business-finance-support It’s also worth looking at your local chamber of commerce, local council and local business groups for help. What about getting investors? There are plenty of people out there willing to invest in a sound business idea. Of course, you can brave it and go on Dragon’s Den , if you like, but also consider family and friends, investor groups, crowdfunding, bank loans, etc. Always take good, reliable advice, and be careful! Make sure that whoever you talk to is legitimate, and make sure you get legal contracts drawn up with ANYONE you enter into a business agreement with. Relationships with family and friends can easily turn sour where money is involved. Will being self-employed affect my benefits? It might do – there are too many variables to go through here. So it’s best to have a chat with HMRC about it first. Will I be able to get a mortgage? Yes – although maybe not for a couple of years. Most major lenders require at least 2 years’ worth of trading and associated self-assessments before they will offer you a deal. But – on a positive note – the number of mortgages available to the self-employed is growing as self-employment is becoming increasingly popular. The key is to find a good mortgage broker who regularly deals with self-employed applicants.