For a sole trader, freelancer or a self-employed entrepreneur, the pressures of cost-saving can be intense. There isn’t a team of staff around to help keep a close eye on cash flow. There’s nobody to make suggestions about strategies you may not have thought about yet. So, what could you be doing to help cut spending and save more cash?
Work from home more often
Did you know that HMRC offer tax savings for anybody who works from home? Yep, that’s right – you could be taking advantage of tax benefits on the back of ‘use of the home’.
This relief encompasses factors such as:
Council tax payments
Mortgage interest payments
Water and electricity
Internet and phone costs
Some household maintenance
Fortunately, the option to work from home is a luxury afforded to those who are their own boss, so it’s time to start taking advantage.
Of course, working from home as a permanent fixture isn’t for everybody. We understand that you need fresh air, a change of scenery and human interaction in order to think creatively, be more productive and nurture your mental wellbeing.
However, if you incorporated working from your home office as a significant part of your weekly routine, you could see some serious improvements reflected in your finances.
Avoid credit cards at all costs
This one goes without saying and we hate to nag, so we won’t linger on this one for too long. Let us just reiterate that credit cards are a risky business – especially for a sole trader, freelancer or the owner of a very young business. Debt and interest rates can spiral out of control quickly so consider other means of accessing finance first.
Get your haggle on
Have you been with your current internet provider for donkey years? Are you a loyal customer to your phone network provider? Have you thought about shopping around for your gas and electricity just to see if you’re really getting the best possible prices?
If you answered yes to the first two questions and no to the third, it’s time to pick up the phone and see what can be done. You never know what deals are out there unless you inquire about them.
Reassess your direct debits and subscriptions
We’ve all made the textbook mistake of signing up for a free 30-day trial of something and then completely forgetting to unsubscribe once the month is up. Even more months pass and you find yourself still paying for something you don’t even use. Now’s the time to cancel any direct debits or subscriptions that are forgotten, inactive or just plain useless.
Get a top quality accountant on board
You might think that the fees attached to paying an external party to deal with your tax, accounts and bookkeeping is a costly expense, but it’s usually the easiest way of cutting costs.
What you might be losing on account of tax inefficiency, unawareness of what you could be claiming, late payments and potential fines, most probably carries more monetary value than the cost of an accountant. If you are looking to enlist the support of a qualified accountant, call us on 020 3355 4047 or email firstname.lastname@example.org to find out more about our affordable services.
Do you have any of your own money-saving hacks? Leave them in the comments below or come and share them with over on Facebook or Twitter.
Want to learn more?
Subscribe to our newsletter to get accounting tips like this right to your inbox
About The Author
A content writer specialising in business, finance, software, and beyond. I'm a wordsmith with a penchant for puns and making complex subjects accessible. Learn more about Elizabeth.