Going It Alone: The Ins and Outs of Self Employment You Maybe Don’t Know About
So, you’ve done it. You decided to go it alone and enter into the world of self employment and sole trading. First of all, congratulations for making the leap from a solid and comfortable working life to a not-so-comfortable but far more rewarding one. But, now the hard work starts. Other than the work you’re going to be doing in your self employment venture, whether you are freelancer who takes work from others or whether you have set up your own work-from-home business, you’re going to have a lot of work on your hands in regards to the financial and legal ins and outs of self employment. For advice on how to successfully circumvent these ins and outs, make sure to read on.
You MUST be registered
Registering yourself as self employed or your business as an actual trading company is something you have to do. By not doing so, you will be caught, you will be deemed to be fraudulently trading and you will get in trouble. So, register, register, register!
To register, you will have to do research into the registering demands of the country in which your self employment is based. You should then look into any deadlines that this country has in place in regards to when you need to be registered by. In the UK, for instance, the date to be registered as self employed for the 2017/18 financial year was 5 October, 2017.
Everything needs to recorded… EVERYTHING
Not to sound too dramatic, but EVERYTHING regarding your self-employed working status needs to be recorded. Anything you do in regards to payment, whether this is incoming or outgoing payment needs to be recorded. Everything you do in regards to your taxes, yep, you guessed it, needs to be recorded. Basically, it all needs to be recorded if you want to keep yourself out of hot financial or even legal water.
In regards to both incoming and outgoing payment, everything needs to be recorded because, by doing so, you will always have evidence of what exactly is owed to you and what exactly you owe to others. What you should specifically record and keep in your records are the invoices you give and receive as well as any payroll stubs you may have generated using a check stub maker. In regards to your taxes — yes, you will still be paying income taxes even though you are not working in a traditional working environment — you simply must record everything so that you have evidence as to what it is exactly that you owe come the turn of the new financial year. What you should keep a record of is any tax IDs that your government provide you, any dates you have to pay tax back by and any and all evidence of tax inflation that may occur.
Self employment can be a very fruitful venture, if you are willing to put the work in in regards to making the work you do a success and if you are willing to the put the work in in regards to staying on the right side of the law, that is. Only by doing these would you really be able to garner some momentum in your business venture, whatever that venture may be.