Finance tips for the self-employedOctober 18, 2018
Being self-employed can bring numerous benefits. Here we take a look at a number of top tips to help make the most of it, and perhaps even save some money.
There are now in excess of 4.5million self-employed people in the UK. This figure represents just over 15% of the labour workforce. That is a fantastic and extensive network of people to learn from, get in touch with, and even collaborate with.
1. Make the most of the expenses deductions available
Keep a detailed record of all your expenditure and compare this against the HMRC list of allowable expenses when you prepare your tax return. Don’t pay unnecessary tax.
2. Check your phone and internet plan
Keep an eye on your telecoms expenses and take a regular look at what deals are available. You can benefit from some great new customer offers. Make sure the package you get suits your business needs.
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3. Be careful with credit
If you need financial help to get your business started, consider business loans as opposed to reaching for the credit card or using your overdraft. Also, speak to an expert before you make any important financial decisions.
4. Plan your travel
Travel can quickly get expensive and is often a significant cost for self-employed people. If you have to go to a meeting to pitch for work and you don’t get the job, that is an expense with no benefit, so it pays to keep the costs down. If you regularly travel by train, consider whether a season ticket or railcard will reduce your outgoings. Buying tickets in advance can also save money. If you drive a lot, it may be worth investing in a more fuel-efficient vehicle. Don’t forget that your business mileage can be claimed back against your tax return.
5. Have the correct insurance
If you employ any staff, you’re legally obliged to have employers’ liability insurance. Other types of business insurance are also available that can help cover the costs of mistakes, accidents, loss, theft, or damage. You can use a comparison site to find the best insurance for you.