How to become a self-employed carer – step-by-step
1. Make sure you have the right qualifications
It is a legal requirement to have relevant qualifications, you should train to make sure you can offer the best level of care possible. If you're self-employed, having the right qualifications can show commitment to your work – your clients will trust that you have the ability to give excellent care. There are diplomas and NVQs you can take at levels 1, 2, 3, 4, and 5. In Edyn Care we offer this to our carers free of charge.
2. Set up your business
Although caring for your clients will be your day-to-day priority, remember that you’ll also be running a business. This means that before you start you should think about:
Registering as self-employed with HMRC.
This lets them know how much you’re earning so you can pay the right amount of tax.
Registering as self-employed is fairly straightforward. Head to the government's online registration portal and enter your email address. Once you're registered, HMRC will send you a letter with your 10-digit Unique Taxpayer Reference (UTR). HMRC will also set up your online account, which gives you access to a range of digital government services.
Your Self-assessment tax return, which you should complete every year and pay your tax.
When it comes to filling in your tax return you’ll need all the information you have about your earnings for the tax year, as well as the details of any expenses you want to deduct from your tax return.
You must keep a record of all your income and expenses.
That way, you’ll have it to hand when the time comes to fill in your tax return. There are several accounting apps and other bookkeeping software for small businesses if you prefer to keep digital records, many of which integrate with the HMRC website to make filling in your tax return a bit easier.
In order to file your tax return, you’ll also need your UTR (unique taxpayer reference) number.
This is a reference number that’s assigned to you when you register for Self Assessment. It’s usually printed on letters from HMRC regarding your tax return, but keep a note of it somewhere safe so you can easily find it when the time comes.
When you’re self-employed, there are a number of costs you can claim back against your Self Assessment tax bill, so long as they’re allowable expenses.
These are the main ones small businesses can claim:
Internet and telephone use
travel costs such as fuel, parking, and some train or bus fares
clothing expenses such as uniforms
financial costs such as insurance or bank charges
DBS certificate and subscription
Benefits of being a self-employed carer
Going self-employed has lots of advantages:
• You can fit your working schedule around you.
• You can make important business decisions yourself.
• You have more control over your finances.
• You can focus on particular aspects of care and choose your clients yourself.
For more information, please refer to the quick links section below