Starting your own business

There are many benefits to being your own boss, including the ability to choose your own hours, working from home and around family commitments along with various forms of tax relief. The flexibility and opportunities to shape work around providing care, responsibilities, or personal needs means that self-employment is a very important option for people from a variety of backgrounds and abilities.

Three and a half million people in the UK are self-employed. If you are seriously considering working for yourself, you will need to think about doing some research on how to set up your business. Applying for funding and grants, registering for taxes, training, insurance and choosing a business are some of the things you will need to consider. There are also many places you can go to get business advice and support.

Find out more about setting up your own business on the GOV.UK website.

Types of Business

If you decide to become self-employed, what you need to know will depend on what type of business you register as. The types of businesses are:

Sole traders

Sole traders are personally responsible for their business’s debts and have some accounting responsibilities.

Limited companies

If you form a limited company, its finances are separate from your personal finances, but there are more reporting and management responsibilities.

Partnerships

A partnership is the simplest way for two or more people to run a business together. You share responsibility for your business’ debts. You also have accounting responsibilities.

Learn more about the different types of businesses and the rules that come with them on GOV.UK.

Working for yourself

You can be both employed and self-employed at the same time, an example of this is if you work for an employer during the day and run your own business in the evenings.

Learn more about being self-employed on the GOV.UK website.

Being self-employed can mean that you:

• Run your business for yourself and take responsibility for its success or failure.
• Have several customers at the same time.
• Can decide how, where and when you do your work.
• Can hire other people at your own expense to help you or to do the work for you.
• Provide the main items of equipment to do your work.
• Are responsible for finishing any unsatisfactory work in your own time.
• Charge an agreed fixed price for your work.
• Sell goods or services to make a profit.

Starting a business

Starting your own business can have many pros and cons. The benefits include the ability to choose your own hours, working from home and around family commitments along with various forms of tax relief.

If you want to set up your own business, there are some things you will need to do. This includes writing a business plan, registering your business, and figuring out where you are going to work.

If you are going to employ people to help, you will also need to learn about becoming an employer and the responsibilities that you will take on.

Learn more about setting up your own business on GOV.UK.

Writing a business plan

Your business plan will be essential if you need to raise finance and will help keep your business on track.

• Find out more about writing your business plan on GOV.UK.

• Read the X-Forces guide on writing your business plan on their website.

Pros and Cons

The benefits can be well worth it, however, there are pros and cons you'll need to think about.

Pros

• Be your own boss.
• Reap the rewards of your success.
• You do not have to pay income tax until the January following the end of your first year of trading.
• National insurance costs less.
• You can claim tax relief on transport, office decorating and equipment, advertising and books.
• You will have greater freedom than if you were employed.

Cons

• You will have to make provision for your own pension.
• If you are unwell and unable to work you will not earn anything.
• You will not get paid if you take a holiday.
• You will probably have to work long hours.
• You will be responsible for any losses.

FUNDING AND GRANTS

If you're thinking of starting your own business you will want to take advantage of the many funding and grants programmes available.

Details of how to obtain more information, advice and an understanding of the eligibility criteria are available below.

Start-Up-Loan

A Start-up-Loan is a government-backed loan which could allow you to borrow anywhere from £500 to £25,000 to start or grow your business.

Find out more about Start-up-Loans, the eligibility criteria, and how to apply for one on the RBL Knowledge Base website.

Government grants

The government grants section has a wealth of articles and advice on how UK small businesses can get a grant from both the public and private sector, along with helpful guides on the different types of business grants and funding available to start-ups and business owners running a business.

There are many other avenues you can go down, including loans from your bank and other independent funding schemes, however the schemes aimed at ex-Service personnel should be your first port of call.

• Learn more about business support that you may be eligible for on GOV.UK.

 

• Read about business support for those in Northern Ireland on GOV.UK.

 

• Find out about business support on the Scottish government website.

 

• Discover business support that you may be eligible for the Welsh government website.