Choosing between employment and self-employment is a big decision, and both have their perks and challenges. Here’s a quick breakdown:
✅ Employment
- Stability: Regular pay plus benefits like paid leave and sometimes things like health insurance;
- Less Responsibility: Your employer handles all the taxes, business operations, and overhead costs;
- Job Security: Easier access to unemployment benefits and legal protections;
- Limited Flexibility: Work hours and tasks are often dictated by the employer.
🚀 Self-Employment
- Independence: You’re your own boss, setting your own schedule and making the business decisions;
- More Responsibility: You are responsible for all the administration, including insurance, paying taxes and declaring all necessary information to the relevant bodies;
- Higher Earning Potential: No salary cap and income can fluctuate but there is more potential for greater financial success;
- Risk: No guaranteed income or employment benefits such as paid holiday. If you don’t work, you don’t earn;
- IR35: Don’t fall foul of the deemed worker rules. For example, if you are only working for one customer, then (depending on the specific circumstances) you may be classed as a worker and could have tax and NI deducted by said customer to be passed straight to HMRC.
If you’re looking for security and structure, employment might be the way to go. If you crave flexibility and control, self-employment could be a great fit.
💬Have you made a switch? Let us know any benefits or challenges we may have missed!