The Beauty of Self Employment

There are still millions of people fighting hard to secure a 9-5 job, but there seems to be a more viable route that only a few are brave enough to take. Creating your own business is the most lucrative route and if you are deep thinker, you’ll see that it’s true.

 

OOTD A Tartan Dress

 

The reason why many people do not become self employed is because of the risks, challenges and downtimes one has to face before they can make enough to live on comfortably. They think that having a stable 9-5 is a safer way to make a living.

Those who think that way don’t realize that being employed can even be more risky than going self employed because you are putting the probability of you having a regular salary in the hands of others, rather than in your hands, if you look at it in a different way.

I know freelancing/self-employment is not for many people because it takes a lot of passion, perseverance, determination and hard work to sustain any business. Many can’t be bothered with all that and just settle for a regular job with a “guaranteed paycheck” and I understand that. But for those who are ready to take the self-employed or freelance route, here are some benefits you’ll get to experience.

  1. You get to determine your working hours

One of the first things you’ll experience from being self-employed is the large amount of time you’ll have to yourself. Unlike an office job, being self-employed gives you the opportunity to determine your working hours.

The more hours you put into your work, the more income you’ll receive. Since you’re more in control of your time, you get the opportunity to spend time with your family. Setting flexible working hours allows you to work, take part in family activities and enjoy precious moments.

  1. You can determine your level of income

At a 9-5 job you’re only entitled to a fixed salary which is your only source of income. Being self-employed gives you the opportunity to create multiple streams of income. For example, some probloggers have as many as 5-7 sources of income. They earn money from the ads placed on their blogs, sponsored posts, guest posts, product reviews, eBooks, they offer consultancy services, get hired to speak at events, and so on.

The more streams of income you create, the more money you’re able to earn. Freelancers make a good amount of money from passive income streams, so they make money even when they sleep. A wise man once said you an average wealthy person has at least 8 streams of income. How many streams of income do you have?

  1. You will know the true meaning of Freedom

This is something that working in an office will not give you. In a 9-5 you’re stuck within the 4 walls of an office. You have little freedom to work anywhere other than the office. When you’re self-employed you can work anywhere, anytime.

Thanks to the regular streams of income, you have the freedom to travel to different countries and are able to carry your business anywhere you are.

  1. You get to do what you love the most

The sad reality about a good number of employees is that they are working in a job that they hate. When you’re self-employed, you get the chance to build a business around something you love doing. You feel fulfilled with what you do and work no longer looks like work. Instead it’s loads of fun and you enjoy every minute of it.

 

Are you self-employed? How are you finding it?

 

5 Tips for Filing your Tax Returns as a Blogger

OOTD Style My Dress

 

I am no accountant, ok I lied, I am actually an accountant. I studied accounting as my first degree. Although, I am no longer practising, I still remember a thing or 2 from back in the day, so when it came to filing in my tax returns as a blogger, for the first time last week, I found it a walk in the park. Well almost a walk in the park. My tips here can set you up on the right path when it comes to filing in your tax returns, but do get financial advice from the professionals if you feel you need to.

We all know we should declare any income we make from our blog, but many bloggers find it the whole tax returns a bit intimidating and rush off to hire an accountant. Well, unless you are making a crazy amount of money from your blog, or have the most confusing set of expenses, filing in your tax returns should be fairly straight forward.

Here are some tips to help make the tax returns process a lot easier:

 

Register as Self Employed/Limited Company

If you make as little as a £1 from your blog, you need to register as self-employed with HMRC. You are breaking the law if you do not, and you can be fined so get registered ASAP if you have not done so already. You can register as a self-employed person or a limited company with HMRC, it all depends on how you view your business. There are pros and cons to both options, so it is best to evaluate your circumstances before you decide on what route to take. However, It is easier and cheaper to start off as self-employed as you don’t have to deal with the costs of forming your limited company, costs which includes setting up a company bank account, and registering your company for PAYE and VAT number (this is different from the Unique Tax Reference number you do get when you register as self-employed, that is free), which could as much as £125, and you SHOULD appoint an accountant to oversee the company’s finances.

As for self-employed, you won’t have to do any of the above. All you have to is to register and file in your tax returns, which you can do yourself. The beauty about registering as a self-employed person is that you could always switch to a limited company in future, when your brand grows and when you see yourself earning more than £25,000 a year, as registering as a limited company will be the most efficient way of managing your tax.

 

Outfit Post Image

 

Spreadsheets

You should have spreadsheets where you take note of every income you make, and every expense. It is best to categorise these into different months, so every month, you should update the spreadsheets with every income you made, and every expense. This way you will have a clear picture of how much gross and net profit you have made every month. Believe me when I say if you get this bit right, filing your tax returns will be very straight forward, and this just not only help with the returns, it also tells you how you are doing financially every month, which is a great motivation booster.

 

Invoice Your Clients

I do blogger outreach for a few clients and I find it alarming that I need to remind blogger to send in invoices to get paid. Most of them just send in their Paypal email addresses alone and I wonder how they plan to track all incoming payments. Going through the Paypal statements for the entire tax year to track payments is definitely not a good idea. If you are only receiving few pennies here and there, you may get away with not sending your client invoices for payments, but once you start making a good amount of money, not sending your clients invoices correctly and in a timely manner may cost you.

 

Submit your Tax Returns Early

I know we have until end of January to submit our tax returns but it is best to get it over and done with as soon as possible, and get ready for the next tax year. So submit your tax returns as soon as you can, so you have the time to sort out NI and tax payments if any. I won’t leave it till the last minute.

 

Fill Out Your Tax Returns Correctly

This goes without saying but it still needs to be said. Make sure you answer every question honestly, as best as you can. There is a lot of information on the HMRC website and you can always give them a call to clarify anything you are unsure of. Also remember to keep all receipts and invoices incase you need to refer to them in future.

 

These are few tips to help you fill out your tax return. I hope you find them useful. Do you have any tips to share? Drop me a comment, lets chat.