Do I go self employed?

[Fowlersrs]

Anyone else here a tradesmen who is self employed I'm looking for your advice. Been a gas engineer for almost 9 years now, also do plumbing / heating and all that malarkey. Company I work for are a bunch of wankers basically, I have 0 drive for the job anymore but this is mainly down to work being shit.

Company has just lost its tender for renewal of the contract and we have all been placed on a TUPE list for the second time this year, I could quite simply drift to the next fuck up but quite frankly I want to do be going to work and semi enjoying it.

I just can't quite make up my mind if going self employed would help or wether its a complete career change I need, what I do know is I'm not enjoying this anymore.

[Kradmelder]

Im not a tradesman, but a degreed professional and consultant.

It is better to go private if you have some specialist skill, and a client base you know will always come to you. But for the first few years you wont make money. You will also have a big admin burden, taxes, invoicing, accounts, audits, etc. You will need to pay off tools and equipment, have to service bad debt etc.

Cash flow can cripple you until you become big enough to have reserves to carry you through during months when expenditure exceeds income. Some months you may not take a salary.

If you are in a stage of life where cash flow is critical (paying off a house, wife at home, kids to feed, cars to pay off etc), be careful as you could lose your assets. The lack of cash will put a strain on your home life, and a wife may say spend the money on holidays, fun etc rather than put it back in the business.

You also have to be hard working, willing to work all hours to keep clients happy and retain your client base. That may mean swallowing shit at times.

if you are prepared to make the effort, and your family backs you in teh sacrifice, and your personal cash flow situtaion allows you, go for it. You will most likely be far better off in 5-10 years time.

There will be hidden advantages. Like register your personal vehicles under the company as a tax write off, part of your home bond, claim as costs of a buisness premises, so write it off tax as well, employ your wife as an 'admin assistant' (even if she doesnt work there), which allows you take a smaller salary yourself and pay less tax.
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2011 KTM 990 Dakar
2009 BMW 1200 GS

[fatpies]

DO IT.

Sole trader is easier, and you pay 28% tax (compared to 34% as a wage slave) 20% + 8% NIC + £2.50 class 2 a week. Its simple to do yourself. You just punch them into a excel and put that into a tax return.

Corporate you can pay as little as 20% but your accountant will gouge you on fees. Corporate taxes are also paid sooner than personal income tax. There is more paperwork.

Be wary though HMRC are a bunch of cocks and will constantly accuse you. So you might want a decent accountant if you make a decent amount of £££.
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"It's easy to attack and destroy an act of creation. It's a lot more difficult to perform one"

[fatpies]

[Fowlersrs]

Thanks Krad, u have given some very logical thinking. I am in the very fortunate position of having a mrs with a working wage that can cover our bills should it require, she has already said she thinks I need a change and has been very supportive of it. I think I need to spend a few months just getting myself in the best possible position to do this financially and hopefully redundancy money could be on the cards at my present work.

I'm just sick of working for people who have no drive or organisation, they could do things so much better if they wernt so ignorant.

[Kradmelder]

[fatpies]

[Kradmelder]

[Kris]

I was self-employed with my own VAT registered ltd company for a couple of years, although not in your industry.

Doing accounts and VAT are not hard, just get together an Excel spreadsheet or download a copy of sage and you're laughing.

Get a friendly *decent* accountant, keep your own books and then get them to check over every year for the returns. I saved a wedge doing this.
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www.prisonplanet.com

[panrider_uk]

[Kradmelder]

[panrider_uk]

My accountant is a Certified Accountant.

I wouldn't have a clue about depreciation, allowances etc, etc which is why I'm happy to pay them to save me all that work

Mark
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Current bikes: Honda ST1100 Pan European. Moto Guzzi V85 TT Travel

[alexknight200...]

If you have good organisational skills and have a trade then self employment would be beneficial.

If you are unorganised and unmotivated don't bother.

Networking is a good avenue to work, and word of mouth is magical if you produce a good standard of work.

You also have to be a people person as you will have to meet Joe Public, who can make life interesting.

Once you are established go LTD, take on apprentices and then harvest your crop (rewards).

Good luck
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Current stable: Yamaha XVS 650 1996 - Honda Super Magna VF750 1988.

[daemonoid]

Make sure you have a good contacts book. Self employed (ltd) is a great way to go, but you need customers. I know a number of people who do it, but the first couple of years were hard work.
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current: ducati monster 750
past: hyosung gt250r, bajaj pulsar 180, hyosung gt 125 comet
@thomasgarrard | www.straitjkt.com | www.racingseven.com

[CaNsA]

[Kradmelder]

[Bomberman]

[halucin8]

Best thing i have ever done and the hardest. Be aware of the new rules coming into force if you have kids and claim tax credits. Sounds like you have a supportive partner you must sit her down and go through how tough it's going to be so she is fully aware. It's great being your own boss until like another poster said you find out you have lots of bosses now and your time is not your own.
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The only exercise some people get is jumping to conclusions, running down their friends, side-stepping responsibility, and pushing their luck!
You can't buy happiness but you can buy a bike and thats pretty close

[mr jamez]

I reached the same conlusion as you about 18 months ago. Quit my job with zero contacts and was self employed for about 10 months, kept my head above water. Ended up in a full time position after making some staircases for a joinery company. I lasted 8 months there and have no intention of being employed anytime soon...

You have to keep yourself motivated and be persistent when it comes to finding work, once you have it booked in you've got 9 years of experience behind you to get the job sorted out.

I loathe paperwork and excel, but as a sole trader with a modest income its not that much bother.
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NSR 125F > BROS 400 > NC30 > BROS 400 > Trumpet S4 > '97 VFR 750

[621andy]

I was self employed in the UK for many years, and am now self employed in Germany...completely different line of work however

Anyway, keeping your own books is a piece of piss really; just common sense most of it.

My best advice is find a GOOD accountant(ask around in the trades) and keep receipts for absolutely EVERYTHING you buy between now and the end of time! It's amazing what you can put against tax...pens paper, fuel, furniture; anything that can be related to starting up and running a business. List them all on an Excel wotsit( a good accountant will tell you which 'categories' to list them under- ie,. fuel, computer etc) and keep on top of it...once a month or so. Write on the eceipt for what it's for if it's not obvious; you Will forget what it was in a months time!

The other thing is to tell HMRC or whatever they're called asap after starting to trade. They'll expect you to make a loss in the first year or so, and a good acct., will make sure you do Dunno how it works now, but you used to get taxed in your 2nd and3rd years based on the profit (or lack of) you made in your first year, so it makes sense to ensure your tax return shows a loss!

As to work and finding it, can't you start doing a bit for friends family and businesses on evenings and weekends tonstart wit, just to get a 'name' in the sector?

As to whether it's worth it or not...well, I'm writing this by the pool of the best hotel in Bagan, Myanmar, it's 30 deg C AND I'm being paid for it!!

So go for it, but maybe start part time at first, see an acct asap, and start collecting receipts

Incidentally, my bike and anything I buy for it or me goes through the business as transport costs...probably difficult to justify in your line of work but not impossible; usage to visit potential new clients, viewing jobs etc. With the cost of fuel these days, it'd be easy to justify.".

Anyway, good luck and let us know how you get on...it's hard work, but worth it in the end!
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'93 Africa Twin RD07, C-90,MTX-125,H-100,XL-125, a 125UAG(CG copy!)

[halucin8]

One of the changes to tax credits and HMRC is they are not going to assume you will operate at a loss in the first year.. pretty harsh really as im pretty busy at the minute with it being Christmas and only just breaking even, with having to buy new equipment to make my job easier.
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The only exercise some people get is jumping to conclusions, running down their friends, side-stepping responsibility, and pushing their luck!
You can't buy happiness but you can buy a bike and thats pretty close