When in the United Kingdom, a person is classified as self-employed when he is working for himself, and not under an employer. The person is then categorized under the class of being a ‘sole trader’.
Once you decide to be your own employer, you have to tell the Her Majesty’s Revenue and Customs (HMRC) and get yourself classed into the category of citizens who work for themselves. That makes you the owner and the employee of your own company or business.
You are Self-Employed in UK, if you:
- run a business for yourself
- take all responsibilities for the success and failure of a business
- are the decision maker of how, where and when to work
- hire people to work under you and pay them yourself
- are engaged in selling goods or services to earn profit
- have the freedom to charge a fixed price of your choice for your product
- bear the responsibility of arranging all resources and equipment for a business
You can fund your own business by:
- working two jobs. You can be both employed and self-employed at the same time. Many fresh entrepreneurs work under an employer during the day, and work on their own business during the evening.
The salary from your job can cover your expenses of your new business till it starts making profit. You obviously would be in need of funds when you start a new venture. Your day time job ensures that you have money in your hand to envelop the finances of your sole trading.
- borrowing a loan from a bank. You can apply for a personal or business loan in case you wish to focus all your attention on just working for yourself. The bank loan will require proper documentation, credit checks, security and an approval processing time of at least a week. Taking a secured loan from any traditional source can be an alternative to working two jobs.
- taking loans from a direct lender. To avoid tedious and long procedures, you can take an unsecured loan from an online lending website directly. There would be no broker or no guarantor involved in these instant loans. These lenders even offer very bad credit loans to people who get rejected from loan applications due to their credit ratings.
You are classed as working for yourself, if you:
- are a sole-trader. This is when you are involved in making or buying items to sell in order to make profits. It is also extended to earning an income for providing your services.
- are a partner in some business. You could simply join hands with a business (whether upcoming or existing) as a partner to oversee its operations. Simply put, this happens when you do not have an employer and are responsible for all employees and operations.
- set up your own limited company. Such a company is limited by shares or guarantee in the UK. This type of business, though run by individuals, is legally separate from their owners.
For tax purposes, it is required for you to register as self-employed with the HMRC. It is mandatory for a citizen working for himself or herself as the tax liabilities are then calculated accordingly.
Being your own employer and not working under someone else’s supervision gives you a sense of independence. You are left free to explore and implement your own ideas and strategies. You grow at your own pace, learning from your own mistakes. Short term loans from direct lender and funds are available to make you feel comfortable to start on your own.
Description: Being self-employed in the UK means that you work just for yourself, to earn profits and run a business on your conditions. For easy and hassle free financing, you can always rely on short term loans from direct lenders, who are even open to very bad credit loans.