Becoming self employed

[trampoline123]

Asking you for the need to knows, should knows and everything in between.

I am considering a career change and becoming self employed. However, I have an underlying health condition and am conscious I'll lose out on the benefits of working for someone else and getting sick pay, sick leave etc.

How does that work when you're self employed? Don't work don't get paid I'm assuming, but wondered if there was govmnt sick pay maybe...I'm genuinely clueless around this.

Do you also still pay in to a pension? How does that work.

If it matters, it's to become a childminder. We're moving area where there is demand and I want a job to also work around my family life that can adapt as our family changes too.

Thank you for any advice.

Will your condition cause you to take time off work? I don't think that's at all compatible with being a childminder.

Hello!

I became self-employed in 2021, also with an underlying heath condition that I knew was going to require a few months off in the near future (surgery).

Basically yes - don't work, don't get paid. As far as I figured out anyway. There are minor claims you can make back around hospital admissions but nothing in terms of sick pay. I basically saved to cover the time off, but I don't know how that would work if it was unscheduled.

Pension: you have to be strict and cover it yourself, at least 20% of your income. I pay it in every month.

HOWEVER - the flexibility and freedom of working for yourself has been priceless to me. In recovery, I didn't have to answer to anyone - and my son has benefited from a mum who is more available.

Hope that helps, and best of luck.

Not necessarily, only if I was to become unwell and needed to stay in hospital for IV antibiotics.

My CM had serious health issues and only worked term time. I think I had to pick DC up early once due to her health but she was amazing so we didn't mind.

Thank you, this is really helpful.

Like you say, I think being self employed will be beneficial in terms of planning my days and managing family life better.

I'm so exhausted from commuting, working, kid drop offs/pick up, cooking, cleaning etc I don't think it's helping the actual condition. I feel worked up all the time, never have time for myself.

It's a lot to think about but perhaps giving it a shot is a good idea.

We're relocating so if want to leave my current job anyway.

Thank you! That's really reassuring.

I've been self-employed for the last 11 years.

Basically, no work, no pay, so you need to set your rates to allow for holidays, time off sick etc and put that money aside for if/when you need it.

You'll also need to sort your own pension out. There's no employer contribution (obviously), though it can be deducted from your turnover on your tax return.

It can be pressured since you know you'll only get paid for what you've worked (especially if you are a single income household), but I couldn't go back to being employed now.

Also, last note, because you don't get sick leave or sick pay, ensure you have a strict policy when it comes to people sending their children to you when the children are ill. Some people will do it , but if you catch a bug from an ill child, you could stand to lose more income than just their fee if you need to take a week off work to recover!!

That's a really good point and something I can incorporate in to the contracts. Thank you, great tip!

You’ll also need to get the relevant insurances etc, so factor this in as well.