The concept of ‘self-care’ involves taking time out of your day to do things to promote good mental health and reduce stress (lounging on the sofa counts!).

Working for yourself, while having clear advantages, also has some downsides, including a lack of holiday pay, entitlement to sick pay or access to a workplace pension scheme. Looking after your finances is one of the best ways to take care of yourself, self-employed or not.

There are a number of things you can do to protect yourself from financial blows, including:

Paying into a personal pension

With well over four million people in the UK now registered as self-employed, figures vary but the general consensus is that the majority of self-employed people don’t have a pension and with the best will in the world, even with the full State Pension, most people are likely to need additional savings in order to live comfortably in retirement.

Protect your income

Taking out an income protection policy could act as a financial safety net if you were too sick to work or had to take time off due to an injury. These policies are designed to pay out a monthly income, on a short or long-term basis, to cover expenses such as your rent or mortgage, bills and other living costs if you are unable to work.

Take advantage of tax relief

If you’re self-employed, you can deduct some of the costs of running your business from your taxable profits, reducing the overall amount of tax you pay. These are called ‘allowable expenses’ and include (but aren’t limited to): office costs, travel expenses, costs of your business premises, stock or raw materials purchased to sell on, advertising or marketing.

Remember to keep accounts!

It can sometimes be more challenging to get a mortgage if you’re self-employed, but keeping impeccable accounts will certainly help. Lenders will want to see two to three years’ accounts signed off by an accountant, so keep this in mind if you’re looking to buy.

Ask the experts

We’re here to help you take care of your finances, whatever your employment status.

It is important to take professional advice before making any decision relating to your personal finances. Information within this page is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.

Equity release will reduce the value of your estate and can affect your eligibility for means tested benefits.

Tax, Estate and Inheritance Tax planning are not regulated by the Financial Conduct Authority

The value of pensions and investments can fall as well as rise. You may get back less than you invested.

Will writing is not part of the Quilter Financial Planning offering and is offered in our own right. Quilter Financial Planning accept no responsibility for this aspect of our business.

CA Financial Services Ltd are an Independent Financial Adviser based in Sevenoaks, Kent. From our Sevenoaks offices, we offer IFA services throughout Tonbridge, Tunbridge Wells, Dartford, Orpington and across into Sussex and Surrey. Please call us on 01732 617 950 to book a free initial appointment.

CA Financial Services offer financial advice, pensions, investments, ISAs, Equity Release and Inheritance Tax Planning for the whole family. We have 14 years’ experience as Financial Advisers based from Sevenoaks and are truly independent, allowing us to give our customers the best financial advice possible.

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