For some people, being self employed is necessary when pursuing a particular career path. For instance, a number of professions regularly require you to work on a self employed basis, such as journalism, the performing arts and some legal and medical professions. However, there are many other reasons to become self employed.
Starting a business may be a lifestyle choice, perhaps to care for family. A person may want to fulfil an ambition to work in a specified field, or maybe establish a business by developing a skill or hobby. A large number of people become self employed following the loss of employment or being made redundant.
Whatever the reason for self employment, there are many advantages. One of the main factors for someone deciding to become self employed is the freedom and independence to be gained. In contrast to being employed, an individual who is self employed decides which contracts to take, where and when to work and how much to charge. Financially, being self employed can minimise your tax bill as you can claim for specified expenses, allowances and reliefs, as long as they are incurred wholly for your business. If you need to take time off work you can do so without having to ask for permission. Being able to work the hours that best suit your lifestyle is a distinct advantage, providing flexibility where required. Working from home is a possibility for some types of work, reducing expenses and the cost of commuting to and from a place of work.
Making the decision to become self employed can be daunting, which is why a number of people will be employed for a specified number of days each week for a regular salary and be self employed at other times. Self employment offers the flexibility so that you can earn a second income while still being employed.
Rather than working in a nine to five job where you are employed by someone else purely to earn an income, being self employed enables you to do something you love and are good at. Job satisfaction is more likely if you are self employed and can choose your work. The location of work is also relevant, as being able to choose where you work gives you the freedom that you wouldn’t have when employed. Being self employed means that you can decide which days or time of day you can work, to suit your lifestyle.
There is also the potential to earn more when self employed, as you can take on more work and work at various times of the day to suit clients. You have the control of how much to charge for certain jobs, perhaps charging more at specified times of day. Self employment often leads to a greater reward for more effort, which is something you don’t necessarily find in employment. It is also possible to work for different clients at the same time on a number of different projects, which will increase earnings. If you are self employed in an industry with high demand and you have the necessary skills, you can command high rates of pay.
If you are self employed and your business is successful, you can feel a personal pride in your achievement, something you may not feel when employed by someone else. Being self employed provides freedom and flexibility, especially helpful for parents of young children who need to juggle childcare. There are a number of tax reliefs available when you are self employed which will increase profit and reduce your tax bill. Although hard work, self employment has many advantages for all lifestyles.
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Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.