What’s it like being a self employed carer on the Elder platform?

What is self-employment?

In the simplest terms, self-employment means working for yourself, rather than an employer. It can give you greater control over things like when and where you work, as well as who you care for.

As a self-employed carer, you could:

• Work more flexibly, choosing when and where you work
• Find opportunities to earn more than a traditional annual salary.
• Choose the clients you work with, rather than being assigned placements.
• Gain new skills in things like bookkeeping and organisation.

What about tax?

When you’re employed, tax and National Insurance are automatically deducted from your weekly or monthly pay. However, when you’re self-employed you’ll be in charge of managing and paying your own income tax and national national insurance contributions by completing a self-assessment each year.

This may seem daunting at first, but it doesn’t have to be. In fact, working as a self-employed carer can be made easier simply by remembering a few best practices, and using some handy online tools and apps.

Self-employment basics

Registering with HMRC either online, or by phone

It’s important to let HMRC know that you’re self-employed as soon as possible. You can do this through their online registration form. Or by calling them on 0300 200 3504.

Make sure the contact details you provide to HMRC during your registration are correct, as they’ll send you text reminders when it’s time to submit your tax return, as well as emails offering general help and advice on things such as:

• The best way to keep records of your income
• How to claim business expenses, such as petrol if you drive, and work clothes

Should you register as a sole trader or limited company?

When you sign up with HMRC, they may ask if you’d like to be classed as a sole trader, or a limited company – which can be confusing.

A sole trader is simply a person who is self-employed, and who’s the sole owner of their business. As a self-employed carer – you are your business, and therefore becoming a sole trader is likely to be the most appropriate option for you. There’s far less paperwork too, as sole traders usually only need to submit an annual tax return.

Becoming a limited company gives your business its own separate identity, and while this can have its advantages, it also means more responsibility for you, and potentially more paperwork. A limited company classification is often something to consider further down the line, once you’re comfortable with self-employment, or have reached a certain level of earnings.

If you’re unsure what to register as, it’s best to give HMRC a call for some personalised advice.

Completing your first self-assessment tax return

The deadline for completing your tax return and paying what you owe is the 31st January, and is the same each year.

However, tax is calculated from April to April, rather than January to December. This means that you can complete your tax return anytime after April each year – getting it out the way and giving yourself more time to pay.

Your self-assessment tax return can be completed online through the Government website. The online form is split into various sections, and each question has an inbuilt prompt offering helpful information if you get stuck, or if you’re unsure how to answer.