Self employment.... is it worth the hassle?

[Snadger]

I had one and a half years of self employment which I enjoyed............but enjoyment doesn't put meat on the table, or pay the bills!
Now I have a monthly paycheck, no debt, reasonable job satisfaction and am basically still my own boss.

Without enterpreneurs most of us wouldn't have a job to go to though!

[Hazel at the Hill]

For me, yes, the advantages outweigh the enormous bundle of red tape - but then I do have an excellent - and well paid - accountant.

[bluemoon]

Son-in-law runs his own business and my daughter does the accounts etc, she also works full time and they have 3 children, the amount of time she wastes with all the form filling is almost the equivalent of another part-time job, though admittedly there's more of it at certain times of the year. Personally I'm not sure the stress it causes her is worth it....although my brother is a tax lawyer, so I'm very aware of what could happen if she didn't do it... or even didn't do it properly.

[Hazel at the Hill]

Son-in-law runs his own business and my daughter does the accounts etc, she also works full time and they have 3 children, the amount of time she wastes with all the form filling is almost the equivalent of another part-time job, though admittedly there's more of it at certain times of the year. Personally I'm not sure the stress it causes her is worth it....although my brother is a tax lawyer, so I'm very aware of what could happen if she didn't do it... or even didn't do it properly.

Well, maybe a part time job if you are not used to all the forms - my accountant works for me for 6 hours a month, and for that he also prepares monthly management accounts and the annual accounts as well as all the form filling (VAT, PllD, P60, PAYE, NI, corp tax forms etc etc) & filing.

A trained bookkeeper/accountant is so used to filling in all the forms it doesn't take nearly as long as it would if I did it and I have the piece of mind that it's done correctly!

I think in your son-in-laws case it is definitely a false economy for your daughter to fill in the forms - its taking longer than a professional would take and causing a lot of stress.

[SimonA]

Don't get me started on tax credits!

Due to the way they worked out the payments in year one (on what you earned 18 months previously), I was massively overpaid. I'm self employed and at that time my business was making a loss.

I owe thousands back, but they won't let you pay it off, they just take a small amount off the current payments.

[Pumpkin Becki]

I owe thousands back, but they won't let you pay it off, they just take a small amount off the current payments.

Now isn't that rediculous?! The country is crying out for money, but they won't let you pay back what you owe them...where's the logic in that?

I was self employed for two years - interior designer and doing hand painted furniture to sell, but I wasn't disciplined enough, my OH was supporting us both, and I always had kittens when it came to Tax Return time - I wouldn't do it again.

[SarzWix]

OK, with Tax Credits. If they overpay you, and you HAVE given them the correct information every time you've had a change of circs., then you can and should APPEAL. Yes it's a faff, but it is completely and totally worth it - I did it a couple of years ago, when they hadn't bothered to implement a couple of changes after I'd told them about them, and then tried to claim back overpayments later. If you can give approximate dates you called them, and details of conversations, they aren't allowed to claim it back if the overpayments made were their fault, and you'd notified them of the changes If you can do that, in writing, they even have to pay you back the overpayments that they've clawed back... Of course they don't make a big thing of telling you that

I sent in a 3 page letter, telling them every change in circumstance I'd had, when I'd rung up (didn't even have exact dates or person spoken to) and when I'd changed things online (you could do that, then). I got repaid all the 'overpayments' they'd taken off me and my TCs put back to the normal rate.

It's definitely worth doing.

[Hilary B]

OK, with Tax Credits. If they overpay you, and you HAVE given them the correct information every time you've had a change of circs., then you can and should APPEAL. Yes it's a faff, but it is completely and totally worth it - I did it a couple of years ago, when they hadn't bothered to implement a couple of changes after I'd told them about them, and then tried to claim back overpayments later. If you can give approximate dates you called them, and details of conversations, they aren't allowed to claim it back if the overpayments made were their fault, and you'd notified them of the changes If you can do that, in writing, they even have to pay you back the overpayments that they've clawed back... Of course they don't make a big thing of telling you that

I sent in a 3 page letter, telling them every change in circumstance I'd had, when I'd rung up (didn't even have exact dates or person spoken to) and when I'd changed things online (you could do that, then). I got repaid all the 'overpayments' they'd taken off me and my TCs put back to the normal rate.

It's definitely worth doing.

Unfortunately the same does not apply to income tax.
OH thought he was being undercharged, queried it 3 times, and was told the tax office figures were right. Eventually we decided they must know, and spent the money. 3 months later a demand for what we always thought we owed them, and inbterest to be charged if not paid at once.
We did get 3 months to find it, after a lot of arguing......

[veggielover]

Ok, so last week i was complaining at how incompetant tax credits peeps were, however, they are quite speedy at sorting the problem. I rang on Tuesday to ask when i payments would re start, was told i'd get last 3 weeks payments paid in today. Just checked my account and sure enough its all there....... with an added bonus! For the past year i have been underpaid, i have always known that but till end of year figures are in they can't do anything. Today they also paid the monies owed to me for the last year!!!

That is just the working tax, Childrens tax credits due next week..... wonder how much i got owing to me on that!!!

I am a happy veggielover today. We have struggled for the past year due to the shortfall we had, now things looking better and Mr wolf will no longer be at our door!

[piskieinboots]

For me, yes, the advantages outweigh the enormous bundle of red tape ...

For me also - sure it comes with worries at times, but I hope I never have to change it

[Pumpkin Becki]

Ha! We get HSA (health cover) paid for by the company as a non-optional perk (they've been doing it for donkey's years). We've been told this week that we are now going to get taxed on it, and no we aren't allowed to opt out! Ruddy cheek. Especially as my OH and I also have to pay Denplan for the pleasure of our dentalcare, so we can't even claim that back on HSA!!! Grrrrr!!!!