Looking to start up on my own?

[RWhites]

OP - I know someone said to get an accountant, but the really important bit is to stash some money away for your tax every time you get paid for a job. At least 25%-30% of your 'profit' for the job. Your tax bill comes in two big lumps each year, and if you've not got in the habit of putting money to one side it can take a long time to get back on top of it after the initial pain - and the tax man won't wait to get paid!

If you're disiplined about it you'll build up a surplus over time. Put it somewhere where it isn't easily accessible. Premium Bonds are where I used to stash my tax money. Tax free and you could win a million! (I never did though!)

Going self-employed was the best thing I ever did.

 

[FiremanT]

OP - I know someone said to get an accountant, but the really important bit is to stash some money away for your tax every time you get paid for a job. At least 25%-30% of your 'profit' for the job. Your tax bill comes in two big lumps each year, and if you've not got in the habit of putting money to one side it can take a long time to get back on top of it after the initial pain - and the tax man won't wait to get paid!

If you're disiplined about it you'll build up a surplus over time. Put it somewhere where it isn't easily accessible. Premium Bonds are where I used to stash my tax money. Tax free and you could win a million! (I never did though!)

Going self-employed was the best thing I ever did.

Wise words, but DO get ann accountant straight off. It could save you a huge amount of grief. I am speaking from bitter experience! And I am no dunce when it comes to numbers, but oerganisation is the key. Get into good habits early on and be disciplined. Your accountant should be able to provide guidance, and these days, some tools.

 

[RWhites]

OP - I know someone said to get an accountant, but the really important bit is to stash some money away for your tax every time you get paid for a job. At least 25%-30% of your 'profit' for the job. Your tax bill comes in two big lumps each year, and if you've not got in the habit of putting money to one side it can take a long time to get back on top of it after the initial pain - and the tax man won't wait to get paid!

If you're disiplined about it you'll build up a surplus over time. Put it somewhere where it isn't easily accessible. Premium Bonds are where I used to stash my tax money. Tax free and you could win a million! (I never did though!)

Going self-employed was the best thing I ever did.

Wise words, but DO get ann accountant straight off. It could save you a huge amount of grief. I am speaking from bitter experience! And I am no dunce when it comes to numbers, but oerganisation is the key. Get into good habits early on and be disciplined. Your accountant should be able to provide guidance, and these days, some tools.

I absolutely agree; I just meant "as well".

 

[NiallEvans87]

OP- I'm 25 and started up on my own nearly two years ago, 5 months after buying my first property. I started out with a cheap van and have just upgraded to a sign written Transit. I have found that if your honest with people they will trust you, if I don't think I can do a job I recommend someone who can. I only do plumbing and gas work and I am manic so if you decide to carry out other work as well then you should find yourself pretty busy. I earn/charge a good wage but I am sure there are people earning/charging more (and most probably less) but as long as you get what you need then who cares what others are pulling in. I would rather have work everyday, even if it means I only earn an hours pay, than sit on my backside doing nothing.

The paperwork side is a headache, I am just finding my way around it with the help from a good accountant, as mentioned before.

I would say go for it mate, ask yourself what have you got to loose and where do you want to be in 5-10 years time. Work out all your outgoings then that will give you an idea of what you need to earn a day. I worked out that at worst I would probably work 240 days per year (365/yr minus weekends at 104 minus 21 days 'holiday') my outgoings are £20,000 including mortgage, bills and business costs so to break even I need £120/day before tax, £150/day to turn a bit of a profit. thats an example for you.

It is hard out there but not impossible.

Good luck.

 

[danplumb]

Some great advice guys really appreciate it, I think im going to save as much as i can till the end of the year and maybe look at starting up next year.
Regarding accountants ive never really had much dealing with them, when do you pay them and how much roughly ?

 

[mickyg]

shame your not local to me, could probably put a weeks worth of work your way every month if your good at what you do. I would say go for it, unless you've got too much too lose, at the end of the day if you don't do it, you'll live the rest of your life wondering what if.

 

[alan999]

Hi
I started out about 6 years ago. When I started I intended to buy a van. Still havent bought it. I just use my ageing Ford Focus and get any big heavy stuff delivered to site. Mind you I work fairly local. Such an approach may not suit all people but the Focus is easier to park and doesnt attract the scrap metal guys.

 

[Nige F]

shame your not local to me, could probably put a weeks worth of work your way every month if your good at what you do. I would say go for it, unless you've got too much too lose, at the end of the day if you don't do it, you'll live the rest of your life wondering what if.

Well said -

 

[Agile]

You are 21 now so how have you worked in plumbing for six years?

Tony

 

[danplumb]

You are 21 now so how have you worked in plumbing for six years?

Tony

Easily. I left school when i was still 15 as my birthday is in august, i worked for a while before i finished school on my school holidays and weekends.