The rise of the self-employed individual has been watched carefully by business leaders, so much so this idea of flexible working has boomed in recent years. Maybe it is the rise of millennials (those born between 1982 and 2004, who now make up the majority of the workforce), a generation that doesn’t see the point in having to stay in the office between 8.30am and 6.30pm just for the sake of staying in the office. But even with flexible working conditions, the perks of self-employment are still obvious. You choose your hours, your rate, your holiday and, best of all, no boss.
However, being self-employed still comes with a touch of risk. You are no longer protected by employment rights, which means it is now up[ to you to ensure you are best protected. This can be a tricky place to navigate but, luckily for you, we can help. All you have to do is read on.
Pensions
A bit of advice here: pay into a pension account from the very first moment you possibly can. Why is this important? Well paying into a pension pot is your best bet of getting to retire with a nice little pay packet, because you are no longer entitled to employment contributions. Of course, planning for an event that could be over 35 years away isn’t easy, which is why you shouldn’t just look at it as a retirement pot. Your savings could save you if there is another economic meltdown, for instance. So do it now, get on your phone, go on to internet banking and start putting some dollar aside.
Tax
Sorting out your taxes is one of the most hideous and time-consuming things anyone can ever do. But it is required by law. As such, we highly recommend that you find yourself an experienced and local accountant that will help you stay on top of everything. To get a headstart, start organising your paperwork; invoices, receipts, expenses, deductions and any relief you are owed or receiving.
Insurance
The list of possible insurance you may need is as close to endless as one can get. To name just a few, there is:
- Professional indemnity insurance
- Product liability insurance
- Vehicle insurance
- Building insurance
- Contents insurance
- Travel insurance
- Income protection insurance
- Employer’s liability insurance
These aren’t all of them, though. Nor is it everything that you should consider. That’s because your self-employed work may see you act as a contractor, whereby another firm takes you on, for example. Let’s say that you have an accident while on this job. The complications of this scenario can be extremely complex and may require you to contact a professional company, someone like www.warriorsforjustice.com, who will be able to guide you through the ropes and confirm which insurance covers you and where the fault lies. As such, we recommend you speak to a professional legal firm the moment you become self-employed. This way you will cover yourself no matter what type of work you partake in. If you are self-employed and have been offered an opportunity to work as a contractor, speak to your lawyer first. Prevention is better that aiding.
