There are so many benefits to being self-employed; choose your own hours, choose your clients, no needy boss, no abhorrent commute, no office politics, no holiday limitations and a chance to play by your own rules. However, there is a minefield of things you need to know. You are no longer protected by an accounts department or even an HR department. There is no to protect you by your own creativeness and research. However, we are here to help you get to grips with life as a self-employed parent.
No matter where in the world you are based, you will probably have to register yourself as self-employed with a centralized governmental revenues body. This means you will have to start taking charge of your own income tax and insurance. Sorry. Depending on your location, there will be different rules and regulations to adhere to and different dates by which you need to adhere to them. As such, we recommend you save yourself a lot of hassle and research tax prep companies, which will be able to take a lot of the burden and guide you through what can be a complex maze, especially if this is your first experience of being self-employed.
Business bank account
You may find this a slightly unnecessary step to take, but as a self-employed individual it is absolutely vital you keep your business records separate from your personal affairs. That is why we recommend you get a separate bank account. We also recommend you shop around for the best deals and sometimes you can find business accounts that offer you up to 24 months of free banking, which could be a massive plus. It may even be worth opening a deposit account for your business, especially if you are going to be holding onto funds for an extended period of time. This will let you earn a little bit of interest too.
This is well worth your time when it comes to researching what insurance you will need as a self-employed individual. Certain businesses are required to have certain insurances by law. What this insurance covers is completely dependent on what industry you operate in, or what line of business. It could be you employ others, in which case some sort of liability cover is a necessity. It could be you are a taxi driver, so you need to have corporate cover on top of personal insurance. Public liability is also required if you have clients or customers visit a premises in which you operate from; this will protect you in the case of any accident that occurs. It could even be professional indemnity insurance you are after, which will protect you in the event of any dispute about the service you offer. In short, do your research or, better yet, speak to a qualified lawyer.
You are going to need to keep on top of all of your accounts. That is a must as it is an obligation. We recommend you have this on your mind at all times. It will save you a whole world of stress when it comes to providing the tax authorities with a clear and accurate record of all your business transactions. It will also ensure that your business, or life, operates smoother and more efficiently. Trust us. We cannot recommend this one enough.