A person is considered self-employed if he or she runs the business for himself or herself and the onus of making it a success lies solely on him, rather than a third person unless appointed so. Although having a self-employed status has its own share of benefits, not to mention the freedom of ownership it brings along, it is not covered by the employment law. It is advisable and highly recommended to consider various pros and cons of being a self-employed person and must consider the below-mentioned lines:
The number of self-employed workers has been increasing ever since 2001 and as per the statistics, the number of self-employed workers has increased from 3.3 million to approx 4.8 million by 2017. Being a self-employed has its own share of advantages such as you are your own boss and have the flexibility and control along with exploring your creative and entrepreneurial side as you grow in your business. However, like any other good thing in the world, self-employment has its own share of disadvantages as mentioned below:
However despite having a fair share of advantages over the traditional employment route, many of the self-employed leave the self-employment route in between for various reasons and opt for the employment option. HMRC has been prudent enough to foresee the possibility of a person shifting from self-employment to employment and thus included the required provisions and guidelines which need to be followed if one wants to do so. Like there is a checklist which you have followed while registering yourself as self-employment with the HMRC, you need to follow the same in case you want to de-register yourself i.e. you must tell HMRC that you have decided to stopped trading as a sole trader or if you have decided to leave or end a business partnership.
On receipt of your notification regarding cancellation of self-employment status, HMRC will then cancel your Class 2 National Contributions (NIC). However, before you go ahead and inform the HMRC about the same, you must take the following actions:
Apart from entrepreneur relief, HMRC allows you to claim a few other reliefs on the Capital Gains Tax, such as
De-registering yourself from being self-employed opens the door to various advantages which you can avail now such as holiday pay, sick pay to name a few and also saves you from the financial perils of being a self-employed and as per the adage – No one and nothing is perfect. It is you who have to work to make it perfect and the same goes for being self-employed or employed under someone else.
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