The best way of going it alone.

[rjb]

Calling all self employed sparkies for advice.

First, recap of my situation. Been doing up old houses as a side line for last 4-5 years and have now decided that being an electrician is for me and want to be self employed. Currently finishing 2330 level 2. Starting level 3 in september and will fit in 2381(2) in April - June next year. After all that want to do part p through NICEIC etc etc. so I can be official (absolute hatred of cowboys, but that's another story!!).

My questions are as follows:

1) What are pros and cons if you are on your own of being a sole trader or creating a limited company?

2) Does anyone take out loss of earnings insurance if for instance you fall and break a leg. If so can this be taken out when you first start (ie proving income).

Your advice so far for technical questions has been brilliant and have been learning loads especially from pic of the week.

Many Regards

Richard

 

[bengasman]

Advantage of ltd is limited responsibility. Literally. More costly though than sole trader if you are small business.
Loss of income insurance; find someone who has first hand experience with cashing in on a claim and get the same insurance. Or find yourself a good insurance advisor who is absolutely honest. Of keep the money you would be paying for the insurance and put it in high-yield investment.
Not a question you asked, but it may help anyway. As far as I know, you do not need any further courses when you have got your 2381 to get yourself registered with part p scheme.
As you have plenty of time until you got your certs, check out the other organisations that you can join, NIC is the biggest but from all I have heard not necessarily the best. I like NAPIT much better. I would say it is more a matter of preference than a question of who is best.

 

[rjb]

Thanks for reply.

As far as I'm aware once I have 2330 and 2381 (17th edition is called 2382 I believe) then NICEIC want to inspect a major and minor piece of work.

Also they want to see calibrated and certified 16th edition testing equipment (or whatever changes 17th edition bring) and for you to have 2M liability insurance. Please correct me anyone if I'm wrong.

Anyway I have 18 months (hopefully) until I launch myself upon the unsuspecting public!!

 

[DESL]

rjb

What's your job at moment?
What commitments do you have, mortgage, wife, kids etc?

How old are you?

These are all factors to be considered when going it alone.

I did it 4 yrs ago after taking early retirement at just over 50.
I'm lucky enough to have a modest pension which just about pays some of my bills. But following divorce I have to work to keep head above water.

If you are unemployed you can get help from the government under a scheme called 'New Deal' which will give you business training in tax, VAT accounting etc

If you are under 25 or over 50 there are some some extras in terms of help with set up costs etc.

Go the self employed route to start with keeps it more simple in terms of accounting as you can just file a tax return on line and pay yourself a wage.

Don't expect to make anything in the first year or two.

Buy decent test gear but don't lash out on expensive tools like drills etc I got cheap stuff with a years garruntee

And bear in mind it's feast or famine.

In my 4 yrs at it I've had 2 yrs in profit.

If you want any more help I'm quite prepared to give you contact details as it can be a lonely life out there when things aren't working out.

 

[rjb]

Thanks DESL.

My wife and I decided a few years ago I need a career that's futureproof and could be taken anywhere in the country as my current industry is dying a painful slow death.

As 2nd jobs we've been pulling houses apart and putting them back together (at a higher price hopefully) and electricity seemed the way to proceed forward as it was the area I found most interesting when restoring property (worked with qualified electrician who was a full time fireman too to keep sparky bills down)

We've stopped doing that now as we have three kids (oldest only 3 years old).

So I have thought about this move for sometime and always wanted to be self employed.

I figured I would need about 10-12K to get started (already seem to have all tools known to man). Interestingly talking to folk at college it is actually the home bashing side that they are least confident with, not the electricity. I guess running circuits in real life houses is slightly more complicated than 8 x 8 ft piece of chipboard screwed to the wall. (deliberate understatement)

So should have a advantage there.

Anyway thanks for response again. It's going to be a bit of a leap of faith I am sure, but I've been told it's always better to regret something you've done than something you haven't done. (or words to that effect!)

 

[DESL]

but I've been told it's always better to regret something you've done than something you haven't done. (or words to that effect

I'll agree with that

As you are aware from another post on here I'm a yottie

I went to a talk by Chay Blyth and his philosophy was

On that fateful day when you're watching your toes curl up you don't want to be saying "If only or what if"

I thoroughly enjoy my new carreer as a sparky my only regret is not doing it earlier, but at least I'm doing it now & 20:20 hindsight is a wonderful thing.

My offer of advice still stands

 

[rjb]

Thanks, I will take you up of that. All advise and help will be gratefully accepted.

 

[DESL]

No worries

Just keep SWMBO on your side - oh and working full time for a couple of years

 

[Steve3948]

Rjb,

I have been in the trade for 35 years and self employed for 21 years.
There are Highs and Lows, and I have seen many go down the pan during this time, the main reason being that they did not charge enough for the work being done.
It's OK having shed loads of work, but if your prices are not right it will not cover the overheads involved with being self employed and an Electrician.

If I had my time again, I would choose plumbing, they make far more profit due to the materials they supply, however if PAYE then they are equal.

I don't know any poor self employed plumbers !!!!!!!!