Employed or Self Employed?

If you're a trader, you may be weighing the pros and cons of being self-employed versus being employed by someone else. There are certainly advantages and disadvantages to both options, and which one is right for you will depend on your personal goals, values, and circumstances. 
 
Let's take a closer look at the pros and cons of each option. 

• Pros: 
   
  Control over your workload:  As a self-employed trader, you have complete control over your work. You can set your own schedule, choose the projects you work on, and make all the decisions about how you run your business. This kind of autonomy can be incredibly appealing, especially if you're someone who likes to be in charge or requires a high level of flexibility which some employers may not be able to accommodate.  

• Potential for higher income: Being self-employed will always allow you to have the potential to earn more money than you would as an employee. You can set your own rates, take on more clients or projects, and build a reputation that allows you to charge a premium for your services. If you're willing to put in the time and effort, the sky's the limit when it comes to your earning potential. The harder you work the more you can earn, you will not necessarily have the same prospects in a salaried role.

• Tax benefits: Self-employed traders can take advantage of a variety of tax benefits that aren't available to employees. You can deduct business expenses like office rent, equipment, and travel costs, as well as a portion of your home expenses if you work from home. You can also take advantage of capital allowances, the flat rate scheme and Annual Investment Allowance. 

• Financial uncertainty: When you're self-employed, your income can be unpredictable. You may have good months and bad months, and it can be hard to plan for the future when your income isn't steady. You'll need to have a solid financial plan in place, including an emergency fund, to weather any downturns in your business. 

• No benefits: As a self-employed trader, you won't have access to the benefits that many employees enjoy, like health insurance, retirement plans, and paid time off. You'll need to provide these benefits for yourself, which can be expensive. 

• Increased responsibility: When you're self-employed, you're responsible for everything related to your business, from marketing and sales to invoicing and accounting. This can be a lot of work, and it can be overwhelming if you're not prepared for the responsibilities that come with being a business owner. 

• Pros: 
   
  Steady income: As an employee, you'll receive a steady salary, which can provide a sense of financial stability. You'll know exactly how much money you'll earn each month, making planning easier. It will also mean things like obtaining a mortgage or credit for items such as a car will be a lot easier. Self-employed people will have to prove they have a steady income for much longer than someone who is employed through a business.  

• Benefits: Many employers offer benefits like sick pay, retirement plans, and paid time off. These benefits can be expensive to provide for yourself as a self-employed trader, so having them provided by your employer can be a major perk. If you were away from work for a long-term illness some employers may support this with sick pay. This is something that would not be available for self-employed people. Much like maternity and paternity pay.  

• Less responsibility: When you're employed by someone else, you'll have less responsibility than you would as a self-employed trader. You won't have to worry about marketing and sales, invoicing, or accounting - your employer will handle those things for you. 

• Cons: 
   
  Lack of control: As an employee, you won't have as much control over your work as you would if you were self-employed. You'll have to follow your employer's policies and procedures, and you may not always agree with the decisions that are made. This may be really frustrating for some people, especially if you are keen to make meaningful changes and developments within your working life.  

• Limited earning potential: While some employees can earn a high salary, there are often limits to how much you can earn in a particular position. You may have to wait for a promotion or raise to earn more money, which can be frustrating if you feel like you're working hard and not being adequately paid.  

There are so many things to consider when looking at your long and short-term career path. If you are still unsure there is a wealth of resources that are available to help support, you through a self-employed journey. 

• Gov.uk: The UK government website offers a wealth of information on starting a business, including advice on the legal requirements for setting up a business, tax obligations, and funding options. The website also offers a business support finder tool, which can help traders to find relevant advice and support in their area. 

• Business Gateway: Business Gateway is a Scottish government-funded service that provides free business advice and support to traders and entrepreneurs in Scotland. The service offers a range of services, including business planning, finance and funding advice, and workshops and events. 

• Enterprise Nation: Enterprise Nation is a community of small businesses and self-employed people in the UK. The organisation offers a range of resources and support for those considering self-employment, including online courses, events, and a directory of business advisors. 

• Business Mentoring: Business Mentoring is a UK-wide mentoring service for small businesses and entrepreneurs. The service matches business owners with experienced mentors who can provide advice and support on a range of topics, including starting a business and moving into self-employment. 

Here at Tile Giant Trade, we wish you the best of luck in your journey and we look forward to working with you soon.