12 December 2010
17:3784232#1
Can i have peoples pros and cons of the above please
Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
12 December 2010
17:3884233#2
Of what, of being self-emplyed?
Brian Dixon
- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
12 December 2010
17:4184234#3
alex,of course.hence the title self employed,thats what mel is asking about.
mel,got no idea but the ikes of barryw might .
Guest 700- Registered: 11 Jun 2010
- Posts: 2,868
12 December 2010
17:4384235#4
PROS: (1) You can put into effect skills you have learned working for someone else..
(2) You get great pleasure and satisfaction at doing a job well and helping other people;
(3) Mostly you enjoy what you are doing;
CONS: (1) You work much harder and longer hours.
(2) Unpaid holidays
(3) taking holidays can lose customers
(4) You have to be nice to difficult customers
(5) these days you are governed by more rules and regulations than years ago;
(6) lastly - but not least - You have to do your yearly tax return !!
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Lincolnshire Born and Bred
12 December 2010
17:5784241#5
For:
1)self sufficiency
2)control of quality - well, control of everything!
3)opportunity to diversify
4)fun!!
Against:
1)no sick pay!!
2)holidays have to be planned if you want some
3)no, no more cons. Self employment is great for those who want it and crap for those who don't .
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
12 December 2010
18:1484247#6
i think a lot depends on the size of loan that you need to start up and whether you have your home up as collataral.
that is when the stress hits and fear of failure can lead to actual failure.
12 December 2010
18:2584248#7
True Howard - but not all small businesses need a loan or capital to start, and frankly if they do it can be worth the anxiety if you have done your research and market testing.
Guest 649- Registered: 12 Mar 2008
- Posts: 14,118
12 December 2010
19:3384252#8
Well I worked for myself for 8years back in the 1980s, I was never home for weeks on end saying in digs over parts of the UK and overseas as well, The work i did like but I hated working for myself 7days aweek very long hours with no overtime etc.I was only to glad to get back on the cards,and the Taxman was no help left me owing alot of money.
Jan Higgins
- Location: Dover
- Registered: 5 Jul 2010
- Posts: 13,931
12 December 2010
22:0684274#9
I agree with all the points by Kath and Bern, plus very long hours even if it is only catching up with the dreaded paperwork. When we were at the pub we had the odd day off but could not afford to go on holiday apart from a long weekend in eight years.
To sum up I would say be very sure what you are letting yourself in for and do not wear rose tinted glasses, think what would happen if your plans went wrong. If you are sure you are doing the right thing you will love it regardless of all the hard work.
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I try to be neutral and polite but it is hard and getting even more difficult at times.
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Guest 694- Registered: 22 Mar 2010
- Posts: 778
12 December 2010
22:1984278#10
I am not self employed but the nature of my role means i am close to it!!
I agree with most people here, planning holidays is difficult, I need to go to Harrogate to do my shopping for new stock and that involves shutting for several days...and I am attending a few weddings in the next year so need to plan around that as well.
Exhaustion, i am working lots of hours behind the scenes that has to happen but its all worth it , but I am never off duty really. Customers can get hold of you on any days... snow is no excuse, that was almost our busiest time!
Ross Miller
- Location: London Road, Dover
- Registered: 17 Sep 2008
- Posts: 3,709
13 December 2010
00:0884296#11
Depends on what sort of self employment - I am looking at going contracting (i.e. selling my labour and knowledge)
The pros are an obscene day rate (I work in financial services), the ability to choose to an extent who I work for, the tax rate I end up actually paying on my earnings, the ability to offset a proportion of my household bills against the company.
The cons are no sick pay, no paid hols, accountants bills, statutory accounts, not getting paid promptly, having to remember to invoice, annual tax returns for both you and the business, the uncertainty of where the next job is coming from, dealing with job agencies, IR35.
It is not for everyone, but can be incredibly rewarding if you have the right mind set and discipline
"Dream as if you'll live forever. Live as if you'll die today." - James Dean
"Being deeply loved by someone gives you strength,
While loving someone deeply gives you courage" - Laozi
Guest 707- Registered: 1 Dec 2010
- Posts: 75
13 December 2010
17:1984403#12
I recommend self employment to anyone. It's hard work and takes alot of self discipline. If you can do it by borrowing as litttle money as possible from the beginning all the better. I have not had a holiday in 10 years. I should but i love my job so much. I have the odd sick days but that is because i don't want ttto pass germs on to my clients.
It does have it's drawbacks but the pros far outtweigh the cons.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
13 December 2010
17:4084405#13
Interesting thread.
I have had primarily self-employed income since 1989 with sometimes associated 'employed' income through associated businesses.
Some disadvantages of self-employment not mentioned include:
- Reduced control over your income level and tax (compared to establishing yourself as a 'company')
- Reduced potential for pension contributions, limited to 100% of taxable income with no opportunity for employer contributions subject to annual allowance. Carry forward of unused allowance now being introduced which will help a bit, but still limited compared to employees.
- Reduced State Pension. The State Second Pension is paid only to employees and is disproportionally helpful to a low paid employee paid at just over the NI threshold. Whether low paid or not self employed individuals do not qualify for S2P at all.
- You are left to yourself to provide for your pension and your own sick pay
- Mortgages can be more difficult to obtain. On one hand you want your accountant to minimise your tax bill but in doing so your borrowing capacity is reduced. Self-Cert or non-status terms do not help any more.
But on the plus side:
- More freedom
- Depending on the type of business you have you might be able to build up a value that will help in retirement as you could sell it.
Me - I would never go to work for someone else, I would be unemployable, too independent and would soon be telling the boss how he should run his business, as I will have done it better...
Guest 660- Registered: 14 Mar 2008
- Posts: 3,205
13 December 2010
18:5184418#14
And bore them with Politics Barry
If you knew what I know,we would both be in trouble!
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
13 December 2010
19:1384429#15
No more than you John
Guest 657- Registered: 13 Mar 2008
- Posts: 3,037
13 December 2010
20:5984469#16
To quote Barry W "I would never go to work for someone else, I would be unemployable, too independent and would soon be telling the boss how he should run his business, as I will have done it better"
Totally agree with that. I've had a great boss for the last 5 years - me.
Guest 664- Registered: 23 Mar 2008
- Posts: 1,039
13 December 2010
21:1484479#17
You need to ensure work does not bleed into leisure time. This is more of an issue if you work from home.
Matt Bristow- Location: Whitfield, Dover
14 December 2010
10:4884530#18
I have been self employed in one guise or another for nearly 13 years and I have learnt alot. I think it depends on what it is you are doing, I have been lucky and for the last 8 years I decided to ditch premises and run things from home, keeps your overheads much lower.
To be successfull you will never stop thinking about work or planning something, even on holiday, we have traveled all over the world with a laptop for the last 8 years, its just something you get used to.
Yes you have to do a tax return but then again with a good accountant you will benefit by having to do this. One thing that you MUST learn is that 'cash is king' protect your cash flow more than anything else as without it your sunk. I also wouldn't risk too much to begin with, i.e. don't remortgage your house to fund things.
I wouldn't go and take a fulltime job now I completely agree with Barry I would think I am pretty unemployable now in anycase!
Jan Higgins- Location: Dover
- Registered: 5 Jul 2010
- Posts: 13,931
14 December 2010
15:1884550#19
Another thing to take into account once self employed is that if you have to back to working for someone it is very difficult. I found this out working at the charity shop, you see all the faults, real or imagined, and want to change nearly everything.
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I try to be neutral and polite but it is hard and getting even more difficult at times.
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14 December 2010
15:5084551#20
As for work bleeding into leisure time - it is all one to me!! I love what I do and it tends to inform how I live. One of the benefits of choosing to work for oneself is that oneself becomes the means of working, like the hod to the bricklayer and the typewriter to the journalist, and I can choose to do something about which I feel passionately.