Self employment advice

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saignatescu

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Hi,

I hope someone can give me a little advice.

I have recently become a freelance/ mobile hairdresser. I’ve always been employed so I find it very difficult to figure out the self employment thing. I have registered with hrmc as sole trader but I was speaking to someone today and he told me I should be a limited company. This person is not a hairdresser but explained me some of the disadvantages of not being a LTD.
I am not based anywhere, I don’t have a salon so can have a limited company??
 

Haircutz

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As your annual profits will be fairly low to begin with, I’d recommend staying registered as a sole trader and learn to manage your accounts by yourself as it’s easy enough to do.

If you’re working mobile, you’re unlikely to be selling many products to your clients other than the odd shampoo etc. so your turnover won’t be that huge initially.

What particular disadvantages are you concerned with?
 

saignatescu

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Thank you for the reply. That makes sense.
I was told about a legislation that is in place in case someone sues an sole trader and goes to court they can take anything that’s in that persons name (house, car, etc)
I mean, I know it’s exaggerated and I do everything by the book, patch test and very carefully with colours but it’s scary to think it’s possible.
 

Haircutz

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That’s seriously exaggerated. If you’re insured, you have no need to worry as your insurance will pay out any damages in the event of you being successfully sued. In reality, whilst the odd client might complain that they’re unhappy with their cut or colour, it rarely goes to court as most insurance companies will offer an out of court settlement.

Is this person trying to put you off going self employed?
 

annabelm

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saignatescu

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That’s seriously exaggerated. If you’re insured, you have no need to worry as your insurance will pay out any damages in the event of you being successfully sued. In reality, whilst the odd client might complain that they’re unhappy with their cut or colour, it rarely goes to court as most insurance companies will offer an out of court settlement.

Is this person trying to put you off going self employed?
Yeah, it sounded very exaggerated. Thank you for the reply.
 

saignatescu

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