Congratulations! You are at the beginning of your self-employment journey. And let’s face it, setting up a business is both a challenging and rewarding venture. It’s one that will come with ups and downs.
But once you get your footing as an entrepreneur, you will know exactly how to weather the storms that come with self-employment. Before you go full-steam ahead, it is important to ensure that you get everything right from the get-go.
First order of business? Registering as self-employed.
However, getting the self-employment title is not as easy as it sounds. There are many things to consider before plunging into this entrepreneurial world. By understanding these requirements, you will know what to expect. Here is everything you should know before registering as self-employed:
1. Government policies
Self-employed individuals occupy a sizable share of the employment sector. As such, they have to abide by government policies that govern their interests and vice versa. Therefore, before registering as self-employed, it is advisable to learn about government policies and how they will impact or protect your business. This way, you will be operating under the right laws. You can also take advantage of things like government loans and financial services especially if your business requires consistent funding.
2. Tax laws
As a self-employed business owner, you are required to pay taxes. This is proof that the government needs to know whether your business is making any money and determine your income bracket. This is how to get a utr number (Unique Taxpayer Reference) that will come in handy when conducting your business practices. Your UTR number will allow you to process your tax returns correctly. In other words, your UTR number is needed for income forms or self-assessment tax return forms. When you familiarize yourself with tax laws and the process of filing returns as a self-employed individual then you will be well-informed and understand what is required of you and your business.
Your business can only operate when it is licensed accordingly. In the same token, you should possess the required licensing to be self-employed. There are different licensing options depending on your line of business. If you run a professional business (hospital, law firm, non-profit, accounting firm, or offer other professional services) then you will require a license to operate and to be considered as self-employed. Before registration, you will need to know the self-employment license(s) that you will require and how much they cost. This will enable you to put your finances in order before your business becomes fully active. A little planning always goes a long way.
When you lack passion for what you do on a daily basis and feel like you will be more productive in self-employment then do not hesitate to take the leap. However, before making the transition, it is important to ensure that your finances are in order and you are well-informed about your potential line of business. Finally, do not apologize for changing careers. Someone once said that if you love what you do, you will never work a day in your life.