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Hi guys/gals,

I’m 22 and I’m starting to rack up a hell of a lot of “private” work, to the point where I’m working all weekends, evenings and booking off holiday from my employed job to get it all done. I’ve sign written my van, and much to my friends disgust it has actually gained me multiple small and big contacts work wise.

I’m doing electrical maintainence work for a large property owner in the town where I live. This company has about 30 - 40 bedsits/flats that constantly have things going wrong, replacements and call-outs. I also have a string of other small/medium jobs that has been constant for the past 2 years.

Now I’m not saying I have enough to quite my full time job but it certainly is taking over, as one job usually turns into 2 and so on. I just wanted some stories of people’s transitions? By which I mean from Employed work to being your own boss as a one man band etc
 
Hi,i would be careful,anticipating the work you can fit in,around a full-time job...being enough and of the same calibre,as the work you would need to sustain self-employment.

The people who tolerate evenings and weekend work,may be ringing other sparks,come normal,working hours.

People who have issues/questions,etc,from a job the evening before,do not like to ring,get no answer,or hear you cannot attend due to "work commitments" or,"me boss won't let me go...."

So,your question is more about going on your own,and not what route you take,once that decision is made.

Also,my friend,have you mentioned any of this to your employer? There is sufficient information in your post,for him to read it,and twig:eek:

At 22,it is commendable and understandable,to want to rush down that hill,and service all the cows....(you may know,that analogy;)) but,a bit of patience,may even allow you to still do some of the work at present,for your company,but as a contractor.....you know the lay-out,so,could be possible.

There will be loads of decent advice,on here....and some craic....but at least,some of the older hands,have made every mistake, for you,already,and will gladly pass on the perceived wisdom:rolleyes:
 
You need to be wary, most employers may not be happy with your side job business as potentially you could be taking their work. Also on the side work are you suitably insured for the side work because your employers insurance is not going to cover you.

However, if you feel you can gain enough work and you are competent to do all the work go for it, I do not regret a single day of being self employed and would not go back now ever.
Just remember to do yourself a good business plan, maybe google electrician business plan because you will need far more start up cash than you expect, especially if you are going for more commercial work that pay maybe 60-90 days.
Another point you made is creating a LTD company, that creates more paperwork and rules to follow, maybe being a sole trader initially might be better.
But in any case speak to your bank manager they have great business advisers
 
The OP needs to tread carefully here .........

The employer could sack him
Has he declared his 2nd income to HMRC
Does he have the necessary insurances and scheme membership in his name for the work he's doing
Is he keeping all the necessary records ?
 
To answer the ops question: - I ran two companies whilst employed, it was a good learning curve to test the market, see how much i could make and then see what would be needed to gear up to full speed when i left employment. This was over several years. I chose my time to resign carefully and decided to do it in 2010 during the financial crisis , lol - I dropped company one, which was a mobile computer repair and installation business and concentrated initially on pure power electrical work. i.e. Electrician. The first six months was a bit scary, i advertised extensively and leaflet dropped personally which was very effective. I also subbied for the first 18 months to keep the income going. I went Ltd and Vat reg from day one as i decided comm & industrial was my bag. I included data networking naturally to the portfolio as a add on from my previous IT background and later added Fgas (air con) and Natural Gas (gassafe) to install boilers and warm air heaters. So now fully HVAC in effect. Oh i was an industrial electrician as my first job, leaving school before getting into comms and IT.
I envy your age as i did it at 48 and wish i had done it 10 years earlier as i would have probably had the ambition to build up a company so i could sit in the office and put my feet up..... Good Luck
 
Just to confirm things...

I’m a sole trader - I declare all of my “private work” income and put aside the tax

I have the relevant liability insurance

I have inspection and testing, I test my own work but the paperwork is signed off be a former colleague who is Elecsa/NIC

I’ve been employed 3 months, I was a Subby prior to this.

My employer is a testing company, purely testing/small remedials. They also know that I do my own stuff, they’re based in Yorkshire. Given the type of work they do (have a contract with Screwfix and Ford) I very much doubt I’m taking their potential work.

Not a rant, just making it known that I’m not a melon
 
Just to confirm things...

I’m a sole trader - I declare all of my “private work” income and put aside the tax

I have the relevant liability insurance

I have inspection and testing, I test my own work but the paperwork is signed off be a former colleague who is Elecsa/NIC

I’ve been employed 3 months, I was a Subby prior to this.

My employer is a testing company, purely testing/small remedials. They also know that I do my own stuff, they’re based in Yorkshire. Given the type of work they do (have a contract with Screwfix and Ford) I very much doubt I’m taking their potential work.

Not a rant, just making it known that I’m not a melon

Not a problem....i have five fruits,a day;)
 
Go for it mate. Good way of abstaining responsibility for any debts you rack up when you go bust. All good fraudsters set up limited companies to hide behind to look legit. That’s the way business works in the U.K. If you’re really good you could get in with Chris Grayling and get a few government contracts ;)
 
I don’t have any ferries... but yeah I’ll have the contract why not? anyway back to the LTD company lark...

I’ve known one man bands before that, when invoicing, mask a lot of their labour charges as jumped up “materials” to “save on the tax”. surely this would be disproven when it comes to wholesaler invoices? Has anyone else come across this?

I know it’s a specific subject but it’s always made me wonder how that arrangement benefits them
 
The HMRC rules are thus:
When you purchase materials, you can only claim as an expense, those materials that you use.
So if you buy £2,000 worth of materials, but only use £853 worth of those materials, you can’t claim the £1,147 unused materials as an expense.
The link below is to a webinar, which will explain.
I imagine, that if you jump up the price of the materials, then that means you would have a higher amount you could use as an expense.
 
I can be signed on the cert as Approved Electrician, so my name and signature. companies constantly employ people who are not electricians let alone approved electricians, these people are on the certificates. Third party certification was introduced by other organisations for the purpose of signing off mainly DIY’ers work. The NIC did not follow suit as this undermines NIC contractor’s work. Yes it may not be “legitimate” in your eyes, but I have worked with this person before, they trust my standard of work and I have all the qualifications to do so.
 

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