Starting on my own & where to start?

[Nick Marchant]

hi

I’m after some advise... I’m a qualified electrician & have 15 years experience.
I’m currently employed & work nights as a sparks & would like to start my own thing during the day.
Is there anything I should & shouldn’t do?
I’m a bit confused on where to start & what to do.
I want to be able to sign my own work off so I know I need to join a competent persons scheme but which one is best.

Thanks

 

[Midwest]

Hi Nick, this is a frequently asked question, and I suspect you'll get some fruitful replies. You could search in the business section, see if yo can locate previous threads on this very subject.

In the meantime, I'll kick it off by saying firstly, what is your present employer stance on you working for yourself or another employer?

 

[Marti]

My Tu'ppence worth.
Hi Nick,
Everybody's situation if different so feel free to use or ignore this suits you.
As Midwest said (above) what's your current employer situation? If you're permanent PAYE can I suggest an honest conversation with them. They may be able to sub work to you when you start. At-least you wont make an enemy on your doorstep if you give them time to adjust.
Also, write a basic business plan. Doesn't have to be reams of paper but plan how / where you get work and crucial assistance when you need it. What your costs are etc. A lovely new van is nice but my NV200 is six years old and paid in full second hand.
At fifteen years you have bags more experience than me so may quote accurately. Me? I still under quote too often.
What else? Don't under estimate how much time you'll spend doing admin I'm getting better and my background in computing helps but I still spend hours on quote, spreadsheets, chasing materials etc.

Where are you based in Essex?

 

[Nick Marchant]

Thanks Midwest & marti for you time to reply... ya I am currently PAYE with my current employer & they are in the railway industry... but I mainly want to do domestic & small commercial jobs so won’t be competing with them.
I’ve already got my own van, tools & test equipment. I just need to know where to get started? What scheme to go with & how goin about applying do I need to be a company or can i just do it for myself.

Thanks nick

 

[Marti]

For me, sole trader has been fine. I've been advised to go Ltd but I'll look at that next tax year.
As to the schemes, all universally despised it appears. I chose Stroma 'cos it saved £200 but councils will only accept NIC and most privateers are ERR..."what certificate"! Are you going to the ELEX at Ally Pally? All the CPS smiles will be there. I'm aiming for the Thursday 31st. It can be a useful day out when you start.

 

[Bob Geldoff1234]

When I started I found it best to talk to an accountant first.They will be able to register you as self employed,tell you about tax and generally help get things off the ground.If you have a wife and she doesn't work then make her a partner.You can use her tax allowance to lower your tax bill.
You also need to open a business account to keep your personal finances separate.It helps a lot when seeing how much is coming in and out.I am a member of the NIC/EIC which,in my opinion,is the most recognised scheme to be with.It will cost approx £500 a year though but i estimate I get at least £10,000 worth of work as a direct consequence.
In order to go self employed you really need to have saved some cash to fall back when there is no work.If your working hand to mouth then you will soon fail.I would only take the leap when you have a few jobs in hand to do as sitting at home waiting for the phone to ring is not fun.
Your customer base is most important for continuity of work which you only gain by doing a good job and getting recommendations.
I used to work for my father as a sparks,so when he retired,i took all his contacts and good will.Thats over 60 years worth of contacts so it's no surprise that I am never quiet!.
Good luck and post any other questions we might be able to help with.

 

[rolyberkin]

Pli is a must, Stroma are fine, never lost a single job by not being with any of the other schemes. As above a chat with an accountant may be worthwhile as in my first year self employed mine sorted me out a sizeable rebate on my previous PAYE tax. Don’t under estimate how much work is involved in being self employed. Get a good accountancy package such as QuickBooks and use it! Good luck!

 

[Andy78]

For me, sole trader has been fine. I've been advised to go Ltd but I'll look at that next tax year.
As to the schemes, all universally despised it appears. I chose Stroma 'cos it saved £200 but councils will only accept NIC and most privateers are ERR..."what certificate"! Are you going to the ELEX at Ally Pally? All the CPS smiles will be there. I'm aiming for the Thursday 31st. It can be a useful day out when you start.

Entirely incorrect. LABC offices have to accept notifications through any government approved CPS.

 

[Midwest]

Thanks Midwest & marti for you time to reply... ya I am currently PAYE with my current employer & they are in the railway industry...

You need to verify you can do work outside your current employment, they may see it conflicting with the terms & employment you currently have, e.g. the hours you do for your own employment may conflict with the hours you should be working for your employer, from a well being, health & safety viewpoint.

 

[Deleted member 26818]

First off, you should register with HMRC as Self Employed, then register for CIS.

 

[Grant webber]

Entirely incorrect. LABC offices have to accept notifications through any government approved CPS.

Think he means local councils will only offer NICEIC contractors there work.

 

[Devonchris]

I take it that this is going to be part time along side your main employment?

As has been said, check that your employer is aware and ok with this. Unions may have argued for fewer hours on the grounds that you need your rest . They, and your boss, may not take kindly to you working your rest time and may have objections on a H&S basis.

Again repeating other posts, make sure you have liability insurance cover.

Start small. Try one or two adverts and take it from there.

See what work you get and if its worth your while joining a scheme. No point forking out for fees if your not doing notifiable work.

Google sole trader and limited company and how to establish both then set up which is best for you.

Make sure you get the admin sorted. Tax vat and all the other unpaid work that goes with the job.

Inform hmrc as you will have to submit a tax return. If you don't already.

Don't work for nothing in an attempt to undercut professional hard working electricians who don't have a second job to fall back on.

Good luck

 

[rolyberkin]

Think he means local councils will only offer NICEIC contractors there work.

Yes but even that is wrong!

 

[Andy78]

Think he means local councils will only offer NICEIC contractors there work.

Ah right. Well again that is not correct and not allowed. I have done work for the local council and have never been with the N word.

 

[Marti]

Back to the topic, someone mentioned (above) about needing a cushion when you start. This is the hardest part. IMO once you start you keep customers and build but it's the start if you don't have a customer base. That could mean doing something you don't want but pays the bills or partner's income to pay the basics. Sub-contracting hard as again, unless you have the subbies base of people to call or will call you where do you find them? I'd be interested to know that one. I've had to fit a few bathrooms just to build a customer base. If you want to PM me I may have something useful depending on where you are. Oh yea, I found you burn a lot of diesel early on further afield. Taking jobs to build the base.