self employed

Thoughts for the intended self employed

Like many people over the course of the Coronavirus pandemic, businesses have found it increasingly hard to survive through an unprecedented period of challenge with job losses being inevitable and many exploring becoming self-employed.

Those experiencing the furlough period have had a lot of time to reflect on their aspirations, survival and the requirement of comfortable work/life balance. 2020 has seen a surge in people taking the plunge into the world of self-employment by starting up their own business.

As of the end of 2019 the number of self-employed individuals within the United Kingdom stood at around 5 million people with the most common form of self-employment being working for themselves.

The Set-Up

Although an initially daunting prospect, setting up your own business leads to a very rewarding experience.

Many people fantasize about being their own boss and choosing the amount of work and when to do it, enabling a more flexible control over your work-life balance. Providing a service directly also enables the ability to earn more which is an extra attraction, however, it is a full-on work commitment with areas you may not have accounted for.

Customers expectations will need to be met in order to successfully maintain a growing business model and make your self-employment financially viable. Proper preparation is required to be able to estimate whether you have the financial investment to be able to successfully set up your business.

You need to fully identify where you plan to carry out the work, be it a personal space or an office environment and the costs of fitting out that space with the equipment needed to effectively launch your new career. You will need to focus on how to attract new clients and how to manage financially without a regular income at first. Remember, when starting out self-employed you will not be privy to such things as holiday entitlement and pension contributions.

Among the chief items, you have to face within your new business venture is admin and if you are adequately prepared to handle that side of the business with bookkeeping services, cash flow and tax returns.

Registration as a Limited Company

If you consider taking the role of a limited business you will first and foremost need to register yourself with Companies House. From here you will be responsible for paying corporation tax.

Whether you set up as a limited business or sole trader, you will need to inform HMRC that you are self-employed so that they know you need to pay tax through self-assessment pay class 2 and 4 National Insurance contributions. You will also be required to open up a separate business bank account to keep personal and business expenses separate.

Find a suitable chartered accountant to prepare your annual accounts and tax returns. This is not a legal requirement but it is a considerable help. Although it can come across as a very complicated chain of events to establish yourself as self-employed, with the right planning and research you can build a steady workflow and call your own timeframe which is a major benefit.

Additionally, you can hire a bookkeeper manchester to completely handle your admin and financials to help guide and advise you through your business journey. To get the help you need and keep on top of your early financials moving forward, talk with Pebbles today for all your bookkeeping services in Manchester and bookkeeping in South Manchester.

Don't just take our word for it...

Anne-Marie Armstrong, Amberry Marketing

I just wanted to thank you both for the help you’ve given me thus far in setting up my new cloud-based bookkeeping system ‘Clearbooks’.

Having used Microsoft Excel for more years than I care to admit, I had more than a few reservations when considering changing the way I managed my books, yet understood that I had to make the change sooner or later.

After an intense training session with Sean, (where I probably asked 101 questions), my fears quickly dissipated and I can honestly say that although it’s likely to take me a little while to really get to grips with the new interface, I’ve no doubt that this simple system will save me so much time and hassle in future.

And less time spent doing my books, almost certainly means more time with the family and an end to rushing around like a mad woman at quarter-end!

Thanks again and I’m looking forward to working with you again soon.

Steve Tanswell, Manchester Facades

I changed book-keepers around a year ago because of a disagreement.  I employed Diane of Pebbles and having been with the same firm for 10 years, I was amazed by how easy working with Diane was.  Not only did the change save me money but also saved me time.  Utilising new technologies (to me) have massively improved the amount of money I can claim back in VAT and has made the whole process speedier and well as easier.  Even when Diane is chasing me for information she does in a friendly professional manner.  I’m thrilled to be working with her and would recommend her to anyone.

James Balderstone, Lucid Networks

Pebbles Bookkeeping took over our bookkeeping when a full-time member of staff left the business.  Our accounts are relatively complex for a business our size because of the number of different suppliers and products we deal with, but Pebbles were able to get quickly up to speed.  We have significantly reduced our costs spent on bookkeeping activity as a result. They have also helped us move to a new accounting system (Xero), which we are already seeing the benefit of, and we’re looking forward to working with Pebbles in the future to automate more of our back-office processes.

Lisa Heggie, The Gunnery

A massive thank you to Diane at Pebbles Bookkeeping & HR. You took the huge stress away from where do I start, with employee policies etc. You have created us a great, informative employee handbook, covering all necessary policies and risk assessments in a matter of no time and from the other side of the world too. I will definitely be in touch for any future help our company needs.

Wayne Dinning, Managing Director, SD Waste Paper Limited

Diane has been providing her services to my company for approximately 6 months now and I can honestly say that due to her assistance, my company is running a lot more smoothly than it has at any time over the previous 30 years that it has existed.

I would just like to say that I would recommend her services to any business, whatever the size, as I can only see that her services would be beneficial to any company that may choose to employ her services.