I'm thinking of getting out of the rat-race before I'm too old to enjoy it - but its a subject I know very little of , having been employed for virtually my entire life.......
But.......I just dont know where to start . I understand tools and equipment costs can be offset against tax - but I already own nearly every tool I need - where do I stand on that ?
I would hope to be working from home as well - I have my `machine shop' and welding shop all set up , and so far no problems with neighbors - just what could I get away with ?

The art to been self employed is a good accountant, we pay ours far less than she saves us. Ring a few most will do a free consultation, choose wisely and don't forget your employing them not the other way around.

As for self employed do it, I wish I/we had done it years ago best thing we ever did.

[Edited on 29/11/13 by Jon Ison]

Be very careful about operating a business from a residential address. Mortgage lenders don't like it and nor does the HMRC either.

Your local council will take a dim view of you repairing stuff full time from home. I used to work with the local housing office , and they shafted a tenant for operating from home. They can use bye laws for noise etc if you upset the neighbours.


That will all depend on whether you have neighbours, or are far enough out of the way for this not to be an issue.


What sort of work are you planning ?

Think long and hard before you do it. I've been self employed for years and still can't get used to the uncertainty of not knowing how much you are going to bring in every month.

As the guys above have said, !!

when I did the car thing as a side line a few years ago, and made a lot of cash, I was up front with my immediate neighbours and offered any help etc at reduced costs, and this kept them on my side

I also made sure that the two night workers within 100 yards were not kept awake during the day !

Steve

I'd be doing mostly welding and fabrication (I just cant keep up with the orders for subframes and V6 conversion parts) plus one-off or small batch machining .
Neighbor on one side works away most of the time - and when he is here makes far more noise than me , the old couple on the other side are OK so far - I do my best not to make too much noise , and never work late .

I just know theres so much more I could be doing if I had the time

I have operated out of my house for the last 8 years. Sure I have an extensive workshop. The Workshop is for my hobbies which are kit cars etc which require lots of tools. I have never upset my neighbours in 30 years (never ever intend to). One irate neighbour could cause you mega grief with the LA esp if your premises are not rated for such activity. My argument is my business is run out of my van and mobile phone and the workshop is there to store some tools for my business not carry out any paid work. However the odd job gets welded and the odd bit of lumber gets cut in the workshop before a job. My advice is buy a van. If your business is the motor trade do it at the customers driveway/garage location.

I've been self employed for the last 25 years the best advice I can give you is make sure you charge the going rate for what you do. Dont be tempted to be cheaper than any competitors you might have. You need to have good really profitable weeks to make up for the weeks when a job goes wrong or a piece of machinery blows up or the phone dosent ring or whatever. I've seen the quality of some of your work and wish you all the best if you decide to go for it .m.

I second the advice re getting a good accountant. Try to find one who, like you intend to be, is self employed and works from home. Don't go for one who blinds you with science but instead replies to your questions so that you understand the answers. You need someone you get on with too. Business Link may be a good starting point or your bank manager. An accountant will explain how to get tax relief on your existing equipment and probably give loads of other business advice as well.

Remember, an accountant advises - if you follow the advice its still you who ends up in the dock facing the charges.

(friends view was he was ok cause his accountant told him so. Accountant was human and got it wrong).

Work out how much you need to live.
Work out how much you'd like to earn so you can have a nicer life.
Work out / guess how many weeks you'd like to work - holidays, being sick etc mean you'll not be earning.
Work out / guess how often you'll have a 'quiet' week with no work.
Work out / guess how many people won't pay / will not pay the full amount.

Now work out how much you need to earn and think can you really do that?



Now figure out what happens when someone gets annoyed and complains about you. Where will you work from? What will you do till you get everything moved into that location? Where will the money come from to cover the cost of the move and the new location? You may think you've got a good relationship with your neighbours but it just takes one incident so you may as well have a plan ready now.

its fuuny ive been self employed for 22 years and often think about working for someone, just purely because of the hassle, you can put alot of work in and all for no money,talking to customers, quoting jobs,invoicing , sourcing materials can all lead into time that you could be with family ect and the days can be as long as you want them to be, everything else the lads have said above is all good solid advice as usual

What ever you decide to do i wish you the best of luck

Mark

And another thing, when someone asks if you can do 'this five minute job". Charge them, otherwise you will be doing five minute jobs all day long, for nothing.

ATB

Simon

Go for it, nothing to loose IMO. I'm LTD, and operate out of my house, no objections from HRMC.

I use a small firm accountant who like me got sick of working for her employer (guess who), so instead of being a tax inspector she now runs her own accountant's business

I used to graft my arse off in the automotive sector, now just relax and take what comes. I get about the same take home pay for working 2 days a week...

+ 1 for charging for that '5 minute job' as I when i was self employed I found customers just took it for granted and it fuelled their expectations.

When you do any freebie work only do it because you actually want to and make a big point to the customer about it, really lay it on thick to them about how much chargeable time you have given them as a one off favour- that way it sticks in their mind, they can appreciate the extent of what you have done and they wont expect the favour to be repeated next time they need something doing and want it done on the cheap.

Clairetoo,
Good to hear you're felling "froggy" again. I have been on both sides of that employment fence myself. Somedays it was awsome, somedays not, whether paychecking or working for self. Several here have commented on the importance of a good, reliable bookkeeper; do this as soon as possible! Never throw away any paperwork: almost anything can become important in an audit! If you step up to this, those wonderful neighbors need to feel you and your enterprise "works for them"; I've done many small car repairs and tune ups to keep neighbors sweet- it works! The Municiple People are a different matter; when they rain on your parade, be ready to move not just your business from your home, but even much of what you consider a hobby- once they see you have monetized your work, they will check, and likely often.
OK, I'm done being a "negative nabob"; If you have the starch to work for the toughest taskmaster ever, and that's what you will need to be to succeed, go for it!
Ever since I found Locost UK, I've been astonished with the creativity, craftsman(or woman)ship and comradrie of Locosters everywhere. Claire, you also won my heart with the klze/Miata swap; I have been lurking two years here and at other Locost sites(and not a few other "car culture" sites) trying to get past the weight wrinkle of putting larger engines in a Locost; you "done it", and I suspect being blond helped!
To end , Claire, take you quote line "will weld for food" deeply to heart, set clear goals both for yourself and for client's, and don't loose this address; I hope to have a "CrapEngineered" part or two on my car!
MSW, Chrisjavascript:icon(''





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Iv been self employed for about 7yrs my accountant has been the same the whole time get a good one and they are worth there salt.
but as said iv been ready to chuck it in more than once last month some woman wrote one of my vans off so i now have that to sort out to. Just put money aside as no holiday and sick pay is rubbish but i enjoy it lol i enjoy finishing a job be it a bathroom refit or just hanging a door everyday is different and you meet some lovely people oh and some not so nice people

but i wish you luck all the same.