Blog Article

Financial management for the self-employed

Financial management for the self-employed

Date: 7 December 2021 | By: cosgrove

Working for yourself, while having clear advantages, also has some downsides including a lack of holiday pay, entitlement to sick pay or access to a workplace pension, so financial management for the self-employed is key.

There are a number of things you can do to protect yourself from financial blows, including:

Paying into a personal pension
With well over four million people in the UK now registered as self-employed, figures vary but the general consensus is that the majority of self-employed people don’t have a pension and with the best will in the world, even with the full State Pension, most people are likely to need additional savings in order to live comfortably in retirement.

Protect your income
Taking out an income protection policy could act as a financial safety net if you were too sick to work or had to take time off due to an injury. These policies are designed to pay out a monthly income, on a short or long-term basis, to cover expenses such as your rent or mortgage, bills and other living costs if
you are unable to work, important financial management for the self-employed.

ankara rus escort
ankara escort
çankaya escort
ankara escort
eryaman escort
ankara escort
istanbul rus escort
ankara escort
istanbul escort
çankaya escort
kızılay escort
istanbul rus Escort
atasehir Escort
beylikduzu Escort

Take advantage of tax relief
If you’re self-employed, you can deduct some of the costs of running your business from your taxable profits, reducing the overall amount of tax you pay. These are called ‘allowable expenses’ and include
(but aren’t limited to): office costs, travel expenses, costs of your business premises, stock or raw materials purchased to sell on, advertising or marketing.

Remember to keep accounts!
It can sometimes be more challenging to get a mortgage if you’re self-employed, but keeping impeccable accounts will certainly help. Lenders will want to see two to three years’ accounts signed off by an accountant so make sure a professional helps with this financial management for the self-employed.

Ask the experts
We’re here to help you take care of your finances, whatever your employment status.