Becoming self-employed if you are over 50 :Cross Stitch – Pensions and retirement planning
The decision to become self-employed is a big step, especially if you’re close to retirement. But it’s not one that you need to take without advice. You can get help with planning, training courses and funding.
There are different ways of being self-employed:
- as a sole trader, working alone: the simplest option
- in a partnership: with two or more people
- as a limited company: the business has a separate identity (you will need help to set this up)
- a franchise: an agreement that allows the franchise buyer the right to run a branch of a business that someone else has set up
Benefits include not having to work for somebody else, self-fulfilment, making full use of your experience, talents and abilities, financial independence and flexible working hours.
HM Revenue & Customs (HMRC) has a helpline for the newly self-employed people. You can call 08459 15 45 15 and request the guide ‘Starting Up in Business’.
You will need enough money to live on while you start up the business, plus funding for start-up costs.
You will also be responsible for paying your own tax and National Insurance. You may choose to have an accountant or alternatively you can submit a self-assessment tax return online.
If you are starting up a new business through New Deal, you get the same benefits as you got before. You might also be eligible for a top up. If you find work through New Deal, there are different benefits on offer. These include tax credits, to make sure you’re better off in a job than on benefits.