The joys of being self employed

The great thing about being self employed is that you can choose when and where you wish to work.
You decide whatever work pattern suits you. More work means more money, but if you have other priorities and commitments  in your life you can choose to have as much time off as you need.

How much work

 
Look at the current annual tax free threshold and ask yourself if you would rather earn within the tax free limit. If you don't need too much why put yourself in a taxpaying bracket? If you do need more money you can work as much as you like. However you should schedule time off  regularly to keep up your strength. Do not try and work if you are not feeling well as that would be unfair to the client as well as yourself.

Where to work  

When you are just starting out you might prefer to stay within a particular area rather than travel all over. Travelling all over the country can be fun when you need to spice up your life a bit. However if you are nervous about or unfamiliar with the transport system you might like to get comfortable in one area first. Some agencies have clients all over the country and this might suit you very well. You must choose where you prefer to work and advise your agent accordingly.  There are plenty of agents so you should have no trouble finding an agent who will offer you work in an area where you feel comfortable.

Carers Public Liability Insurance

Unless you are paid directly by an agency, you will be a Self Employed Carer. This gives you a lot of flexibility, but there is also a lot of responsibility. In a previous post I have highlighted some of the steps you need to take when you are self employed, such as registering for HMRC (tax)  and National Insurance.

The nature of the job of Caring is such that anything can happen and you need the peace of mind that you are covered in the event of any claim that might arise. Your agency and client will expect you to have your own Public Liability Insurance.

A typical tailor made Carer's policy will cost you from around GBP 85 to GBP 90 for the whole year.
Remember you can claim tax relief for this. Insurers offering these policies include Mark Bates Ltd, Fish Insurance and Bluefin Group.

Your policy will typically cover you for:

• Up to GBP 5 million Public Liability Cover
• Legal expenses up to GBP 25 000
• Personal accident
• Loss or damage to your property
• Loss or damage to the clients property
• Access to Legal helpline

You will need to compare the various policies on offer and choose one that suits you. Online payment is incredibly easy, or you can also apply by phone.

Self Employed Carer

A number of agencies prefer you to be self employed. This gives you the flexibility to work as you please, but there is a bit of paperwork necessary. The good news is that the process is not difficult, and is mostly done online or by phone.

Your phone

Your current smartphone should have all the stuff you usually enjoy using, e.g. your email, whatsapp and preferred social media. Your agency and prospecive clients will need to speak with you and you will need to make some calls to sort out your self employed status. Make a plan to be able to have telephone contact. Find out which deals will suit your needs best, perhaps start off with a Pay As You Go, If you find yourself without wi fi access, you can review your package, but don't lock yourself into an expensive package you don't need. 

National Insurance Number

You need this whether you are going to be self employed or not. If you do not have one you need to apply by phone on 0345 600 0643.  Before you phone, have on hand your passport, residence permit if applicable, plus your base address and telephone  number. The operator will ask you a  number of questions and then they will give you a reference number which you will have to write down. They advise you will have to wait 10 days to receive the form. They will also give you a number to call if the form fails to arrive.

Once the form arrives fill it in and return it via the postage paid envelope they send with it. If you are on a EU passport you may have to follow different procedures but the form explains things clearly for each situation.

Some agencies might tell you they do not need this NI number right away which is great.  However I have found that it might help with getting a bank account so I advise that you make this a priority immediately on arrival in UK.      

HM Revenue & Customs (HMRC)

If you are going to be self employed you need to register as soon as possible but at least within twelve weeks of starting work. If you are not starting within 28 days, do not register yet.

You need to have your NI number before you register for self employment.

You can call the Self Employed Registration helpline on 0300 200 3504 or you can register online at www.hmrc.gov.uk

Once you are registered HMRC will send you a Unique Tax Reference number that you will use when filing your annual tax return.

Tax Year

The tax year starts on 6 April and ends on 5 April the following year. The deadline for the return is 31 January following the tax year end. eg 2016/17 tax return must be filed by 31 January 2018. Penalties will be imposed for late filing.

National Insurance

You will pay NI contribitions through your Self Assessment return.
If your annual self employment profits are below GBP 5 965 you will not have to pay, otherwise you pay GBP 2.80 per week
You will also pay  9% of your self employed profits between GBP 8 060 and GBP 43 000.
At the time of writing this there are changes being proposed to the amount of NI to be paid by self employed persons so the figures quoted here may change. Please check online for up to date figures.

Income Tax

At the time of writing this your first GBP 11 000 is tax free. Thereafter you become liable, and your other income sources might have to be taken into account. Payments are due by 31 January and 31 July. You might find life simpler if you engage an accountant to assist in completing your return.  Please check online for the current tax free earnings figure.  

Record keeping

Whether you complete your own return or engage someone to assist, you must keep very detailed records including your income receipts and proof of all purchases and expenses incurred. Should HMRC have any queries, you have to keep records for five more years after the normal tax return deadline.

Allowable expenses

• Travel costs not refunded by your client.  This includes travel to and from training. 
• Cost of training courses 
• Magazines, manuals and subscriptions related to your work
• Uniforms and protective clothing
• DBS and update service costs
• Carer Insurance policies, Public Liability and Personal Accident
• Accountancy fees
• Mobile phone costs for work related calls
• Postage and stationery, eg invoice books

Second nature

If you have been used to being employed and having everything done for you, this might all seem a bit scary. With practise you will develop good filing habits and the process will become second nature to you. It is a small sacrifice for the freedom you will achieve as a self employed person. 

Zimbo goes Caring

I have recently travelled from Zimbabwe to be a carer in the UK. In this blog I will share my experiences and hope you might find the information useful. The more you know before you start, the better your caring journey will be.

Deciding to go caring

I found myself needing an income and figured caring in the UK might be a good idea. I know many people from Zimbabwe have done it.  Mostly they have gone for short periods of a couple of months and then return home having achieved a specific financial target such as school fees.

There is no shortage of agencies looking for carers. No matter which agency you select there are a certain things that have to be in place first.

Documents

You must have the right to live and work in the UK so you need to have a British, Irish or EU passport. Alternatively you would need a Right of Abode Stamp, or Ancestral Visa. Without any of these no one will be able to offer you work in the UK.

If you are planning to work as a Carer one of the most important things you will have to do on arrival is to apply for a DBS (Disclosure Barring Service) which is the UK police check. You will not get Caring work without this certificate. It presently costs GBP 50. For an additional GBP 13 it is recommended that you subscribe to the update service. There are two reasons this is a good idea, Firstly it means if you get work with another agency, they can check your DBS certificate online and secondly, you won't have to re apply for a certificate every year for GBP 50. 

In order to get the DBS certificate, you need to gather some important paperwork before leaving home.

• Passport, British, Irish or EU, or Zimbabwe passport with Right of Abode stamp/Ancestry visa
• Birth certificate
• Marriage Certificate
• Divorce order, if applicable
• Zimbabwe ID
• Zimbabwe Police Clearance, original obtained no more than 3 months prior to arriving in the UK
• Zimbabwe Utility bill with your name e.g. City of Harare Rates, showing your residential address, not more than 3 months old upon arrival in UK
• Zimbabwe Drivers License in same name as your passport
• International Drivers License if your drivers license is not in the name of your passport
• Educational Certificates
• Current full CV  
• 2 recent contactable Professional References. Provide names and email addresses of two people you have worked with or have known you for more than two years. Do not use friends or family members.
• If you already have a UK bank account, provide a current statement showing the address you are using for the DBS check.
• If you already have a UK NI  number, provide a copy of the certificate if you have one
• If you have previously had a UK CRB/DBS check, provide a copy  

All documentation is to be original or certified copies.

Keeping it all together

A display file with plastic pockets will be useful to keep all these papers in. You might want to keep scanned copies on a flash stick. You will accumulate a lot more paperwork once you arrive in UK so bear that in mind.