Just setting up need advice!
Just about to take the leap of faith and have taken on a long term freelance contract with a company I worked along side on a project a few years ago.
Excited but stressed...so many options and things to consider.
Firstly Sole Trader vs Limited Company...as I am just starting up and not yet savvy with everything what would people advice (pros/cons baring in mind it will be a pretty regular 'wage')?
Additionally I am looking over my contract before I sign and I pulled up a part about Indemnity. When I asked the company they said I am covered by their PI so I don't need that, but I do need Public Liability Insurance. How many of you have Public Liability insurance...is it common place and what exactly does it cover?
Lastly how many of you have Income Protection Insurance? I think I have had about 4 days of in the last 3 years so not sure how valuable this would be as i am still quite young and healthy with no Mortgage/dependents etc.
Just looking for some advice to try and clear the mist.
Thanks for reading 🙂
- Welcome to life as a freelancer!
Regarding PLI, there are some plain English explanations (and currently a good deal by the looks of things here:)
Guide to contractor insurance cover :: Contractor UK
Regarding sole or limted trader, there's lots on Freelance UK, among them:
Freelancers' Questions: What are the pros of being a sole trader? :: Freelance UK
Freelancers' Questions: Should I set up a limited company instead? :: Freelance UK
Running your freelance business 1) Paperwork & ?must-keep? records :: Freelance UK
Regarding income protection insurance, there's info here:
Guide to Income Protection Insurance for IT Contractors :: Contractor UK
You don't ask about it, but you may also need to explore IR35. It was introduced to stop people working at a company as an employee and then starting at the company as an 'independent' worker, due to the tax benefits, for both the worker ('former exmployee') and the employer (the 'client'). Good luck and let us know how you get on 😉
- Hey Budy... Relax ! Take a Deep breath. Everything will be fine. Experience can teach you so much.