NEWS

The Times - Money Section

11 June 2007

THE TIMES

June 9, 2007

YES, YOU REALLY CAN BE YOUR OWN BOSS

Melanie Wright explains how to enter self-employment for a better work-life balance

Increasing numbers of people are giving up the daily grind of nine-to-five employment to go it alone and run their own businesses.

More than three million people, or 12 per cent of the UK population, have already set up on their own. Research by Vodafone UK indicates that a further 6 per cent of UK adults are in the process of setting up their own business and nearly a third of all people are considering doing so.

A survey by Yorkshire Bank found that almost three in five sole traders and small-business owners first decided to become self-employed because of a desire for more flexible working and an improved work-life balance. Two in five did so for greater financial control.

But before chasing these goals, you must first acquaint yourself with all the financial implications of going it alone. Professional independent advice at the outset is essential. Martin Bamford, of Informed Choice, the independent financial adviser (IFA), says: “Your IFA can perform a financial health check to ensure that you have considered all the most important areas. You should also work closely with an accountant to find out the implications of setting up your accounts.

CASE STUDY: Flexibility built in

Tom Clowes and Simon Pilkington became self-employed last September when they set up their own building company, Pinnacle Building Projects.

Simon, far left, previously worked as a sponsorship manager for the Football Association and Tom was a corporate team-building event co-ordinator until they decided to go it alone to gain more flexibility in their working lives. Tom says: “I recently got married and Simon has a young family, so the idea of being our own bosses really appealed. I had a bad experience with builders in the past, so our mission was to set up a company to project-manage trustworthy builders to look after a multitude of different projects.”

The South London duo, both 34, set up as a limited company and took advice on how to arrange their finances. Simon says: “We have a bookkeeper who comes in monthly, we became VAT-registered in January and also have professional indemnity insurance and public liability cover.”

They have a NatWest business account and a separate savings account, also with NatWest, into which they transfer money to cover tax and other expenses. Neither has set up a pension, but both plan to do so soon.

Pinnacle Building Projects: 020-7952 4870, www.pinnaclebuildingprojects.co.uk