Pro's & Con's of being self employed.

  • March 16, 2017 3:10 PM GMT

    Big uproar in the press and media about the budget and raising the self employed persons Nat Insurance levy from 9% to 11%.

    So what!,    The advantages of being self employed..   A self employed person has no direct employer to top up their NI contributions, which indirectly reflects on the wages/salary they are paid as opposed to someone on PAYE, (pay as you earn)

    Self employed people have all sorts of tax relief that people on PAYE don't get.   PAYE people cannot claim expenses, for travel to work, clothes for work, dry cleaning, percentages of their utilites for operating a business from home.   Mobile phones costs, road tax and insurance for vehicles used during the course of their business, maintenance costs.    My travel Card costs me £1,892 per anum, Tax deductable, big chunk for those who work for companies on PAYE.   I also have a private pension plan and accident cover, also tax deductable, those on PAYE now the government has a policy that emplyees have to pay in the employer pays in, so this also reflects on wages salaries on offer.

    I do accounts for quite a few self employed tradesmen, they claim for washing and replacing their work clothes, boots shoes, tools, even a business suit to go and see clients, all stuff people on PAYE have to pay for after tax.   Overall the self employed will pay the same as NI as those on PAYE, they will get the same state pension, Medical and if they don't earn enough they will still get income support.   SO STOP WHINGING, not forgetting the odd unacountable cash jobs. get an accountant, Oh! thats also a tax deductable item.