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Current contract is coming to an end and chances of work continuing would be significantly increased if I didn't have overheads associated with my salary.
So how do you go about setting yourself up as self employed and what do I need to consider, such as insurance etc?
Have you tried 'set up self employed' in that Google thing? It gives the businesslink and HMRC gospel as the 1st & 2nd links.
All you need to do is phone up HMRC, and tell them that you're going to be self employed. They'll start billing you for your NI contributions, and send you a tax return for you to fill in. Your only legal obligation is to keep financial records so you can fill your tax return in. Keep receipts for everything you buy that has anything to do with your business.
It's not compulsory to have any sort of liability insurance, but it's a good idea, as you may deal with an american one day, and he's bound to end up suing you for something trivial.
If you're working from home you should inform your local council planners, and probably your home insurers as well.
How much are you liekly to be charging/making? There are options with being a sole trader or setting up a limited company. Ltd company options are good at higher income levels as you can pay less tax this way.
There are also companies who'll do all the set up and run a company for you, if it's a short term thing then these can work out well too.
And don't forget to look into VAT legislation - earn under a certain amount and you don't have to charge VAT (but you cannot claim it back on any business purchases). You can also do a flat rate VAT scheme which makes it easier to keep your books but could mean you pay too much.
The input / output way is the common way and ensures you only pay VAT where you must but needs the most paperwork.
Speak to an accountant and/or go into your local tax office (HMRC) if there is one near you.
It is your employer or potential employer (therefore client/ customer) that will need to give you the option of being selfemployed, or stay PAYE.
No point going to your local tax office on spec, because they no longer see anyone except if they've got an appointment.