Showing posts with label Self-Employed. Show all posts
Showing posts with label Self-Employed. Show all posts

Wednesday, February 16, 2022

4 Things You Need to Protect Your Retirement Side Hustle

Having a side hustle throughout your retirement is a fantastic option to increase your income, however, there are a few things you need to get in line to make sure that it is protected.

Most of these things are simply quick fixes that are definitely worth doing to future-proof your side hustle. Invest some time and a small amount of money now and you will reap the benefits in the future.

Choose A Legal Structure

Although you might have already done this, we must mention it to start with. You need to make sure that you have associated your business with one of three legal structures; a sole trader, partnership, or limited company. 

If you haven’t, you might face issues later down the line, so getting this right if you haven’t already is important.

When you register yourself as self-employed, you will automatically become a sole trader. If you face any debts, this does mean you are responsible and your personal assets could be at risk if you can’t pay them. 

Another option if you have joint ownership with someone else is to register as a partnership. There are different types of partnerships depending on your business, some with fewer obligations than others.

Finally, you can set up a limited company, where your personal assets are separate from the business assets. This is a big advantage, but there are many more legal obligations involved that you need to learn about. 

If you are unsure, there are so many different guides online or you can discuss this with a business advisor to make sure you are making the right choice.

Protecting Your Intellectual Property

If you have developed a new product, service, or brand for your side hustle, it is important that you protect it by trademarking your intellectual property. 

This could be anything that you have created, from brand names to new technology, products, or symbols. Not only will this make sure that you protect your own business and ideas from being ripped off by other people, but you will also make sure that you’re not infringing on other people’s businesses so you don’t face any legal issues later down the line. 

Even if your business only generates a small amount of your income, this is a really important step regardless to future proof the business.

Have The Right Insurance

Every business should have some kind of insurance, and if you don’t, you might find that you come to regret the decision later down the line. 

It is best to work with a broker for this, to make sure that you find the right insurance depending on your specific side hustle. If you work on a credit basis for your side hustle, you might need whole turnover insurance if your business is particularly high risk. 

Perhaps for your specific business, you will need property insurance, liability insurance, workers compensation insurance, the list goes on!

The best piece of advice we can give you is to go to a broker and they will be able to assist you with getting the right cover for your business at the right price.

Make Sure You’re Paying The Right Tax

No matter how big or small your side hustle is, you need to report your earnings to the government. This income will be classed as self-employed income, so it is important you report anything to the HMRC or another relevant governing body. 

Tax is a very complex thing to get your head around, so it is always worth contacting a professional accountant to make sure you aren’t paying too much or too little tax. 

This will make sure that your business isn’t hit with any huge and unexpected tax bills in the future!

Final Thoughts

If you invest in these things now, it will certainly be worth it in the future. Protect your retirement side hustle and your future!

Tuesday, October 19, 2021

How a Mortgage Broker Can Help You Fully Enjoy Your Property

If you are a homeowner with a mortgage, you know how difficult it can be to keep up with the monthly payments. The best way to make your situation easier is by speaking with a mortgage broker

A mortgage broker can help you get better rates and determine which plan will work for you and your family's needs. This blog post will go over five methods that a mortgage broker can use to help homeowners have more fun with their property.

Determine the Type of Loan

A mortgage broker will help you decide which type of home financing is best suited for your needs. The options include adjustable rate mortgages, FHA loans, conventional loans, and 30-year fixed-rate mortgages. 

Each option has its pros and cons that a mortgage broker can explain to you in detail. By determining the correct type of loan for you, a mortgage broker can help ensure that your monthly payments will be affordable and stress-free.

Ensure Payments Are Affordable

Mortgage brokers can help you get the lowest possible rates on loans. By having a good relationship with several banks, mortgage brokers will often find better interest rates than if you were to apply by yourself. 

If you've found that there's no way around increasing your credit score in order to get a better interest rate, then you should consider asking your mortgage broker to help out. 

They can speak with lenders on your behalf and explain the situation so that they can find the best solution for you. This is just one way that brokers can save their clients money by getting them lower rates.

Help You Find the Best Solution

Do you know what type of mortgage plan will work best for your family? If not, then an excellent way to get help is by speaking with a mortgage broker. 

Mortgage brokers often have access to countless lenders and banks that they can use to determine which loans would be most beneficial for their clients' needs. 

For example, if you're self-employed or running your own business, then lenders will be more likely to work with you and offer better terms than the average person applying for a loan on their own.

Explain the Pros And Cons of Different Loans

Not only will a mortgage broker be able to help you get better rates on your home financing, but they can also explain in detail what each option has to offer. 

For example, adjustable-rate mortgages often come with lower interest rates than FHA loans or conventional mortgages. However, ARM’s usually have higher rates than 30-year fixed-rate mortgages. 

By choosing the right type of loan, you can save yourself money in the long run.

Discuss Loans And Financing Options

Do you know what type of home financing loan is available to homeowners? If not, then your best bet is to speak with a mortgage broker. 

Mortgage brokers will be able to help you determine which type of home financing works best for your needs by explaining the pros and cons of each option in detail. 

For example, an FHA loan often has lower monthly payments than a conventional mortgage. However, FHA loans require smaller down payments. Interest rates are usually higher on the average of all types of home financing options.

In conclusion, a mortgage broker can help you with your home’s finances, find a suitable loan, and allow you to enjoy your property more by saving you money in the long run.

Tuesday, October 12, 2021

How to Do Your Taxes When You're Self-Employed

Whether you’re a freelancer, full-time entrepreneur, or something in between, being self-employed means it’s entirely up to you to complete the paperwork and send in the right amount of money to your tax agencies

If you want to keep as much of your hard-earned cash as possible, it’s important to be organized and stay on top of your tax responsibilities throughout the year. 

Luckily, there are plenty of apps and services out there that can help you do this. Here are four tips for doing your taxes when you’re self-employed:

Work With a Professional

Don’t do your taxes yourself—find an accountant to help you. Working with a professional can save you money in the long run. If you are just taking advice from random people online or inexperienced friends, you are probably paying too much in taxes.

Many accountants offer free consultations so take advantage of this service. It’s worth getting an outside opinion as there are many deductions and exemptions entrepreneurs would otherwise miss out on.

Keep Your Documents Organized

Experts from companies like Right Choice Insurance and Taxes Inc. encourage entrepreneurs to keep their business and personal expenses, receipts, and other documents organized throughout the year. 

Organizing is key to simplifying your taxes come April. You should also save money throughout the year to ensure you have enough money to pay for your taxes once the paperwork is complete.

Use Software to File Your Taxes

If you’re self-employed, you likely know all too well how complicated it can be to file your taxes. Thankfully, there are plenty of options for filing your taxes that are designed with independent contractors in mind. 

These programs streamline much of what is involved in filing taxes, making it easier than ever to accurately report income and expenses. The best programs also offer tips for deductions and credits you may not have considered.

Don't Forget Your Deductions

Knowing what deductions are available to you when you're self-employed is important, but can be tricky to navigate. Self-employed workers may deduct many of their business expenses in much the same way that employees do. 

Office supplies, computer equipment, and Internet service can all qualify as deductions if they're used exclusively for your work.

If you’re self-employed, filing your taxes can be quite confusing. Save yourself from the headache of mishandling your taxes by considering these four tips.

Tuesday, February 6, 2018

Are You Self-Employed and Eligible for R&D Credits?

Self-employed? Work from home? Do research and development work? you might think that only certain individuals or type of research qualifies. But, you’ll be surprised to learn that if you are self-employed and work from home, you may qualify for R&D credits. 

And, you will find that there are many freelancers and small business owners, who qualify and don’t even know they qualify for the funding to help them push their product/service, and research along.

Qualifying Research 

Regardless of the size of your business, even if you are an individual doing freelance work, as long as you are doing “qualifying” research, you may qualify for R&D tax credits as a UK business owner. 

Some research which constitutes as “qualifying” includes: science advancements, trying to overcome uncertainties, or work which couldn’t be done easily in the field, are types of work which may allow you to receive funding.

Must Advance It

The project you are working on must show you are trying to make an advance in the field. You should be researching something which has uncertainty in the field. 

You should be doing work which is advancing a scientific or technological aspect in the field. And, you must prove that the work you are doing is trying to fix/deal with the uncertainty in that field.

Overcoming It 

In order to qualify for funding, you must show/prove how you tried to overcome the uncertainty. The type of research you did, the work you did, how you modified your project in order to create an advancement in the field. 

The more you can show, and the more methods you can show you attempted, the greater the possibility that you will receive funding, and the more you are likely to receive when you apply for funding.

It is also important to show another professional in the field couldn’t work out the solution you were able to work out. Basically, you have to prove your advancement is one nobody else came up with, and one which is truly going to advance and help others moving forward.

Even if you are a small business owner, or mid-sized business owner, you might qualify for R&D tax credits, which are tax-deductible. If you would like to look in to whether you are eligible for R&D credits then could help you. 

Whether you are looking for an advance, are working to recreate something, or are making leaps and bounds in technological/scientific research, it is highly likely you’ll qualify. These are a few of the basics to know when applying for R&D tax credits.

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