As self employment in the UK is becoming an increasingly popular choice for workers, EA Worldwide offer advice on the benefits of self employment and the different forms it takes on.

Since the recession, an increasing number of people in the UK have chosen to go self employed. The employment market is becoming increasingly uncertain, especially for the younger generation just starting out; jobs tend to be a rarity and people are staying in their existing jobs for longer. This has led to many people moving towards having more control of their own finances and futures.

Being self employed has its advantages. The main benefits surround having freedom and being in control.  For example, you can choose the working hours that fit around your lifestyle/family, there is the independence and freedom to try out new ideas and self employment often leads to increased job satisfaction.  Being your own boss means that there is no-one to answer to and all the hard work put in, results in direct financial compensation with one else taking a cut.

With the many advantages, there are some challenges that being self employed faces. Self employed people tend to work longer hours and there are no benefits such as sick pay or holiday pay.  If you’re not working, you’re not earning money. When people start out, there are often money worries before the business is built up.

Self employment comes in various forms. EA Worldwide Acquisitions outline the differences below.

  • Sole trader.  Once all tax has been paid, sole traders keep all of their business profits. Being a sole trader can mean some extra risk to the business because all business debts must be paid off if the business fails and an individual can be more personally accountable in the event of a law suit.  Setting up as a sole trader is straight forward. A person has to register for self assessment with HMRC.
  • Partnership.  A partnership is when a business is owned by more than one person. Each person in the partnership is responsible for the growth of the company. Profits are shared by each partner and individual tax and NI is paid by each partner. Partnerships can be people or companies. To set up a partnership, one person in nominated for the responsibility of accountancy and they register the partnership with HMRC.  Each partner then registers for self assessment.
  • Limited Company. A limited company is a form of business that separates the people that own and run a business from the business itself, making it its own entity. Shares in a limited company are held by individuals and profits are owned by the company itself after corporation tax is paid. Profits are then shared out with the shareholders. Limited companies must register at Companies House and give HMRC at date for when the business officially starts running. If the company takes more than £81 000 per year, it must also register for VAT.

EA Worldwide Acquisitions is a limited company that was established in the UK in 2007 after expanding from the USA. The firm focus on face to face sales through business to business or business to consumer in order to create the most direct personal link between clients and potential and existing customers. The firm works with contractors and freelances  to execute interactive marketing campaigns to increase clients sales and revenues.