Got a brilliant business idea and want to branch out but uncertain of how to make that move and go solo? If that is the case then sit back and relax…we have devised a straightforward guide to becoming self employed that will help you on your journey to brilliance!
1: Make sure it’s the right decision for you!
Although going self employed is an exciting and exhilarating prospect, it can also be a challenging one. Therefore, take a moment and consider whether it’s truly the right career move for you. Checking over your current financial situation and business plan is a great way to assess whether you are in a position to take the next step or not. It is also a great idea to speak to an accountant to see whether your business idea has a future and the potential to flourish (it most likely does)!
2: Register as self-employed with HMRC
Here comes the boring bit… Once you are sure that this move is right for you, it is important to register as self-employed with HMRC. Although the GOV.UK website can be a bit of a minefield, it is a surprisingly straightforward process. Click on the link provided for all of the details regarding becoming a sole trader or self employed https://www.gov.uk/set-up-sole-trader . There are multiple bullet pointed lists which will help you determine how and what you need to register as. It is also likely that you will have to fill out a self assessment (it doesn’t take too long so don’t worry about that!!).
3: Set up a business bank account
This next step isn’t always necessary but we do strongly recommend it! Setting up a separate bank account for your business venture will ensure that you can keep your personal finances separate from your business endeavors. Additionally, having a bank account solely for your business will help you keep track of your inflows, outflows and guarantee that you pay the correct amount of tax. Keeping things organised is one of the key factors in maintaining a successful business. With that being said, open that business bank account today!
4: Name your business
This is the exciting part! Since you’re going solo, you get to choose your brand name! Whether you choose to register under your own name or pick something completely random, the decision is yours to make. Have some fun with it but also remember that the name you choose will represent you and your business so don’t rush the decision!
5: Keeping financial records
Our final top tip for setting up as self employed is making sure you keep track of your finances. Whether it is a small stock purchase, a receipt from a petrol station or an invoice from a customer, keeping an accurate record of all your finances will ensure that things run smoothly when it comes to the end of the financial year and paying taxes. Make things easier for yourself and just keep track!
We hope that our 5 steps to becoming self employed will help you on your journey to greatness!! If you have any further questions or require a more in depth guide then do not hesitate to get in touch with us today 🙂 Be brave and make that jump!