Going Self-Employed: Your First Year in the Trade

Going self-employed is exciting and terrifying in equal measure. The freedom to choose your work comes with the responsibility of finding it. Here's what the first year typically looks like.

Before You Start

Have savings. Seriously. Income is unpredictable when you're starting out, and you'll have expenses before money comes in. Three to six months' living costs gives you breathing room to build up work without desperation.

Get your paperwork sorted: register as self-employed with HMRC, set up a business bank account, and decide whether to register for VAT (you must if turnover exceeds the threshold, but voluntary registration has advantages too).

Insurance and Legalities

Public liability insurance is essential. Many clients and contractors won't work with you without it. Professional indemnity insurance matters for some trades. Tool insurance protects your livelihood - standard van policies often have low limits for tools.

Finding Work

Word of mouth builds slowly. In the meantime:

• Let everyone know you're available - friends, family, former colleagues
• Register with local trade directories
• Consider subcontracting to established firms while building your reputation
• Social media can work, but nothing beats doing good work that people talk about

Pricing Your Work

Underpricing is the most common mistake. You need to cover:

• Your time (including travel, quotes, and admin)
• Materials and consumables
• Tool wear and replacement
• Vehicle costs
• Insurance, accounting, and other overheads
• Tax and National Insurance
• Holidays and sick days (you need to fund these yourself)

Managing Money

Set aside tax money as you earn. It's not your money - it belongs to HMRC. A separate savings account for tax prevents nasty surprises in January. Keep receipts for everything business-related. Good records make accounting easier and reduce your tax bill.

The Long Game

Building a sustainable business takes time. The tradespeople who succeed long-term focus on quality, reliability, and reputation. Quick money from cutting corners doesn't last. Invest in good tools, do work you're proud of, and the clients will come.