Self employed - advantages and disadvantages

[Foxyflugel]

Hi everyone

Due to my present situation at work I have seen another job but it is on a self employed basis.

Having never been self-employed before I need to find out what the pros and cons are.

The job I've seen is on a permanent contract and the pay is per day.

Other than paying my own NI & Tax - what else have I got to be mindful of?

It is to one place of work - unlike now as I travel around and have to take home to work mileage off my daily total claimed.

If you have to travel anywhere for training etc they pay 40p per mile.

Any advice would be great.

Many thanks

Foxy :-)

[teaboy2]

Re: Self employed - advantages and disadvantages

Well the pros are you are your own boss. Con's are dependant on the terms of the contract they are offering you. Plus you can not be sacked but the contract can be ended with the required notice period under the cancellation terms of the contract.

Have you a copy of the contract you can post up and we can look at the terms and see if its really beneficial for you? (Minus your personal details and the companies details off course)

[Foxyflugel]

Re: Self employed - advantages and disadvantages

Thanks for your reply TB2 - I haven't got a copy of the contract as I only applied for the post today. If I get to that stage I will try and post up the contract as and when.

Thanks

Foxy :-)

[Sparkie1723]

Re: Self employed - advantages and disadvantages

Hi Foxeyflugel,

Here are a lot of disadvantages against self employment and a lot of advantages.
I’ll give the Disadvantages on this post and the Advantages on another.
1…You are responsible for paying your own Stamp & Pension Contributions payments.
2…You are responsible for your own accounts and tax payments.
3…You are not your own Boss in reality …...everyone of your customers are your boss. 4…You have to ensure that you have Public Liability Insurance.
5…In your case the contract that you will have with the firm that you are considering entering into with will ensure that they will not be responsible for any work you do and any claims against you ( Pretty sure of that).
6…You would have to take out an insurance against illness, should you not be able to work due to illness, which would also need to include a claim against you should you not complete a contract you had undertaken to do and could not finish it in a required time.

Sparkie

[miliitant]

Re: Self employed - advantages and disadvantages

there is only one main disadvantage

NOT HAVING A REGULAR WAGE THAT YOU KNOW WILL BE THEIR while working WITH PAYE

[bluebottle]

Re: Self employed - advantages and disadvantages

Hi everyone

Due to my present situation at work I have seen another job but it is on a self employed basis.

Having never been self-employed before I need to find out what the pros and cons are.

The job I've seen is on a permanent contract and the pay is per day.

Other than paying my own NI & Tax - what else have I got to be mindful of?

It is to one place of work - unlike now as I travel around and have to take home to work mileage off my daily total claimed.

If you have to travel anywhere for training etc they pay 40p per mile.

Any advice would be great.

Many thanks

Foxy :-)

Hi Foxy,

I have been self-employed in the past and am looking at going self-employed again, due to my health.

From what you say in your post, I would offer a word of caution. If you will be working for the firm mentioned and that firm alone, that is, you will not be working for other firms as well, it may well be that the job offer it is what is known as Nominal Self-Employment (NSE). This is a scam worked by some employers to avoid paying Employer's National Insurance Contributions and setting up a PAYE scheme and H.M. Revenue & Customs (HMRC) take a dim view of this. The problem you might come up against with this is that it can affect your eligibility for certain DWP allowances and benefits.

I'm sorry to sound a harbinger of doom, but I feel you need to be made aware of this. It might be a good idea if you spoke to HMRC tomorrow about self-employment. They are there to help and, in my experience, they are, on the whole, very helpful.

[TUTTSI]

Re: Self employed - advantages and disadvantages

To be a true self employed person you have to have more than once source of income.

You would then need an accountant wo be able to work out your tax and National insurance at the end of the year. You also have to notify the Revenue within 30 days of being a self employed person.

Being Self employed you receive your money gross and you have to reserve money from your takings to pay you tax and NI.

http://www.google.co.uk/url?sa=t&rct...qWNcb4WldV3dCg what the Revenue would ask you to complete if you become self employed.

[teaboy2]

Re: Self employed - advantages and disadvantages

Bluebottle its not a scam in all cases, some of those working as self employed for just one company are making a hell of a lot of money from doing so. All the people that work for myself now work as self employed earning commissions the lowest earners working for me still earn more than they did whislt on PAYE and thats after they have paid their taxes and national insurance. You have to remember that no one forces them to work self employed its simply an offer of alternative work which they can agree to or not. Off course the remuneration on offer has to be fair and of good value for it to benefical to the self employed person for them to be interested. Their is also no law against it and the contracts are legally binding so long as they are fair and have a cancellation/termination term.

Off course their are some out there that are scams, but end of the day just because you haven't made the money advertised, its not always because its a scam, it could well be the simple fact the self employed person has not put the effort in. In the case of my company, if you don't put the effort in and look after the customers you get, then your not going to make the money advertised as being achievable as the simple fact is you have not done what is needed in order to achieve that kind of money on a weekly basis.