What a few years it has been. One of my posts said to think about taking up your own business. Little was I to know what was ahead. My own career took off like a rocket, leaving me with little time of my own to start and progress my own business. Then came Covid and that put even more pressure on my work life. We have had the busiest 18months in 34 years of business. Sometimes, I think I could have done with the furlough time and set up my business more but then I realised that, actually, I like doing what I do. I, also, took the time of the forced closure of a rifle club I am secretary of, to search for grants to help us. This I did with the 4 successful awards amounting to several thousand pounds which has enabled us to refurbish our old premises; purchase new equipment; become Covid secure and encourage new members to start when we could open and, to actually, remain viable. It took a lot of time filling in application forms; appeals and sorting out accounts etc along with on-line committee meetings. So, not a lot of time left to do my own business. But, you know what, I think I am better working for someone than for myself. Discipline is a major point and that, I freely admit, I do get side tracked easily which is something you have to avoid if running your own business. A colleague at work left to work from home, so I no longer have her input of help which, in effect, has added a hidden 10 hours workload onto me. I have to watch my mental health and wellbeing as well as others. A point of note to those in HSE – don’t forget yourself!

I’ll sign off now and hopefully will keep on top of this. I have to try and find a new account for the club!

Stay safe and well.

Things to think about before becoming your own boss.


What makes people want to go Freelance or start their own business?

For me it’s the possibility of my job ending so I need to look at something else.  I look at my experiences in my work, what skills I have obtained and what I am interested in.

For some, they think it’s a good career move.  I think only a small percentage regret it and that is the case if you read a survey done by MoneySupermarket.

Others make the move because they are frustrated with their work environment – be it the boss; the daily commute (all that traffic); stress or working hours. Some, I think, would find it fits in with their home life easier.

There are significant upsides to working for yourself, being your own boss is the most enticing one to many people, along with it comes the ability to set your own hours and only taking on the projects you want to. Like everything in life though, there are drawbacks; a fractured work schedule, inconsistent income, trying to find work to fill these gaps, and a lack of any previous company benefits. Below are some solutions I have used to turn these drawbacks into developing a stable income from my freelancing.


  1. Be committed to working some hours daily (work out a structure which will suit you – fits around family or commitments so it maybe that you don’t work weekends or a weekday such as school runs; Drs or dental appointments;
  2. have a separate place in the house where you can work undisturbed. Make sure your friends know that although you may be at home you still have working hours to do and not endless ‘social breaks’. It does not mean you can’t see your friends or do things during the day – you may work better in the evenings but you have to be disciplined.
  3. Depending on the work you have, you can still have a good work/social environment. It may help to keep a diary or log of hours you do or want to do and then you can work free time into that.

Financial worries –

  1. You should really have worked out what you can afford to live on and before going freelance have enough money set aside to pay for about 6 months’ worth of bills. This then takes the pressure off you to get income in immediately to pay bills but can instead concentrate on growing the business.
  2. Put clear stated terms on your invoices and don’t be afraid to chase non- paying clients even resorting to small claims courts.
  3. Talk to your bank about a business account & terms.
  4. Remember, that you still have to pay tax & NI contributions so for every £100 you earn put £30 into another account – preferably a savings account where it will earn a little bit for you as well as pay the tax man at the end of your financial year. Don’t dip into it for other reasons, think that you wouldn’t have seen it anyway if you were employed  You can have other savings accounts for things like holidays; bills etc.

Finding work-

  1. networking & growing contacts is immensely important. Join local business forums; nurture contacts; attend events; have a website (there are free website builders out there, such as WordPress. Or better yet, farm it out to an aspiring developer; we all have that one friend who’s suspiciously good with computers) and advertise either in local magazines; shop windows; Facebook and other media. Don’t forget that there are freelance broker websites out there such as Fiverr or Freelancer that can top up your work load.

Lack of Benefits – No company pension –Until the working pension scheme, a lot of companies didn’t offer their employees a pension but working for yourself, means you have to do something for your later years. Seek advice from your bank or a financial advisor as there are many options.

The last, and most important thing on setting up your business. Insurances & Expenses – don’t forget the various insurances you may need depending on what you do.  Public liability; personal insurance; income protection to cover if you can’t work; check your house insurance if you work from home to see if your business is covered & your car insurance too; professional indemnity and so the list goes on.  Oh & don’t forget the tax & NI contributions!!

These all add to the expenses which are mainly hidden but need to be taken into account when working out what you will charge.

Useful sites:

As well as offering insurancies, some sites also give an insight to what to look out for such as:



(remember there are other insurance companies and independent brokers too.


Local business groups.


The 2019 Loan Charge.

HMRC are on the rampage to clamp down on tax evasion, no matter how legal it may have once been or seemed; they are taking steps to reclaim all tax owed. This is known as the 2019 Loan Charge and is contained under the Finance (no 2) Act 2017, which could be the biggest most significant change in tax legislation in recent years.

It could affect 100s of independent nurses/doctors/teachers/contractors & freelancers that were employed through agencies, because of retrospective tax measures.

If you already know what this is and know that you are included in this, you need to seek tax advice now.

The Government has extended the date for ‘registering an intention to settle’ to the 30th September 2018.  It will only accept money not assets. Be aware – this date will creep up fast.

What is it?  Besides being a complex subject with far-reaching consequences?

As far back as 1999, HMRC told companies that they could no longer treat freelancers as contractors thereby avoiding paying tax & NI contributions (IR35).  But this, in itself, had loopholes leading to accountants & other financial companies offering Trusts such as an Employment Benefit Trust or an Employee Funded Retirement Benefit scheme as a more tax efficient way of getting ‘their’ cash out of the business and avoid paying tax.  These are known as Disguised Remuneration Schemes (DR).

Company A, or an individual, could pay their profit/divert income into this scheme and then get possibly up to 90% paid back by means of a tax-free loan, which was never expected to be repaid or called in.

If you’ve benefitted from such a scheme and still have one on the 5th April 2019 then, please, seek advice.  I can’t stress this strongly enough.

Unless you repay the loan (with money, not assets), or have settled with HMRC then you will get a tax charge, as HMRC regard it as a taxable income and it is triggered on any outstanding loan balance built up. Each case is individually reviewed and the charge can include income tax at a percentage of the balance and NI contributions.  HMRC are also chasing contractors & freelancers with APNs (Accelerated Payment Notices) which have no right of independent appeal.  If the company has gone, then the directors; partners; individuals will be billed.

There are 4 options for settling – see the HMRC website – but they all mean you have to pay or incur further liabilities. There are forms on their site which you would have to discuss with a tax advisor – ‘Disguised Renumeration- apply to postpone your 2019 loan charge (DR100); – schemes affected by the loan charge (Spotlight 44 & 36).

Stephen Lloyd MP says that it is unfair and immoral possibly causing bankruptcy, hitting hard earning contractors rather than the firms who ran the schemes & recommended them. They were also approved by top accountants. Mr Lloyd adds that people who acted in good faith are being punished for imprecise legislation which enabled agencies & tax advisers to take advantage of loopholes.

He argues that in March 2011, the Treasury claimed that HMRC could act retrospectively only in ‘exceptional circumstances’ but how can these be exceptional when 1000s used this arrangement over 20 years?

Stephen Lloyd is raising a motion in Parliament to try & minimise the effect on independent contractors & freelancers.  He calls for the loan charge not to be retrospective & to only be applied to those entering disguised remuneration schemes after the 2017 Finance Act got Royal Assent.

See below for his Parliamentary information.


What do I think – somebody had to think up these Trusts and schemes in the first place to offer them to companies and individuals.  Where are they now?

It is harsh to penalise all people with the same treatment.  Yes, some knew that they were avoiding tax and NI payments, but others didn’t realise that the schemes were a bit ‘grey’ especially the Retirement Schemes.   Why have HMRC avoided the issue until now and why are they backdating it so far when normal financial records are not kept that long?

So, was there a level of pressure or encouragement at the time?  The schemes were used openly, may not have been operating outside the rules at the time and the loopholes were not starting to be closed until 2010, but the charge can date back to 1999.  Why now, when HMRC did not show an interest in them even though they knew about them?

Will they retrieve as much money as they say compared to the expense of all this? That, I don’t know.


If you think you may be affected by the possible ruling, any financial advice is beneficial. Until the ruling is settled nothing is set in stone, so watch this space and I’ll update you when I hear more.

Sites which I have found helpful:



Stephen Lloyd Lib Dem Work & Pensions spokesperson:

Stephen Lloyd – www.politicshome.com – Early Day Motion (EDM1239) is also collecting signatures.

Petition.parliament.uk has collected 3363 signatures to date (26.08.18) – Stop the Loan Charge 2019 from being applied retrospectively – deadline is 3rd Nov 2018.

The Loan Charge Action Group – itcontracting.com is a volunteer organisation.