Virtually Smart Ltd explores the reasons workers choose self-employment & why the entrepreneurial mindset continues to sweep across the UK.
Virtually Smart Ltd has recently been exploring the wide-ranging reasons people chose self-employment over PAYE. In the last of our current series on the entrepreneurial spirit sweeping our nation, we explore the reasons two women have come to self-employment & their visions for their futures. In this weeks article we will also be looking at the changes which will affect the self-employed nation & the potential impact this may have on their working practises.
Despite the liberty & freedom of self-employment, there are a series of elements which each self-employed person is legally bound to abide by. Simple things like being registered as self-employed, making sure invoices & expenditure are kept on top of & of course declaring work to HMRC; is all part & parcel of self-employment. However, there are two vast changes on our horizon. GDPR & the new tax laws which are being fazed in by HMRC over the next couple of years.
First, we need to address the GDPR. But, what is GDPR? The GDPR is the General Data Protection regulation & it comes in to force on 25th May 2018. Every business owner, from sole trader to corporate giant will be affected by the GDPR legislation. All businesses will need to ensure their systems are GDPR complaint. Virtually Smart Ltd recently explored the issues arising from our online/virtual existence in so much as the apps we use daily may not be GDPR complaint as they are designed for a global audience & therefore not covered by EU regulations.
22.03.18 www.virtuallysmartltd.com
Virtually Smart Ltd have been working to identify which current systems are GDPR compliant. We have already found several app’s which are not GDPR compliant & in light of the recent Cambridge Analytica data scandal, we are all aware of the needs to protect our personal data & those of the customers/clients we work with daily.
But, therein lies the rub. Just what systems have you got in place which store customers/clients data? Remember, data means names, addresses, email, cultural , economic & social information, etc as well as more personal information & of course payment information. Where is this stored? On your laptop? hard drive? Drop box? How many free apps have you been using, which are not GDPR compliant nor will be?
Virtually Smart Ltd are offering business owners an audit service for their GDPR compliance. We can assess your systems & policies to ascertain if you are GDPR compliant & where you may need to tighten up on your data protection. We can produce a report which will identify which systems currently in use are complaint & advise were you will need to change your systems/polices to avoid hefty fines in the future.
Lucy Smith writing for CitrusHR says:
“There will be an administrative burden on companies to carry out audits of the personal information they hold, and to produce information for employees and customers on the use of all forms of personal data. In relation to employee data, there will be a much reduced reliance on employees giving consent to the use of their data. Rather, employers will need to explain to their employees the reasons why they are holding and processing personal data, such as payroll information, or information used in training and appraisals, and what steps they are taking to keep this information secure. Employers of under 250 employees will have reduced obligations to report to employees, compared with larger employers, but there is still work to do.”
Penalties for breaching the new rules could be very high, with fines of up to 4% of global annual turnover or 20million euros, whichever is higher, for the most serious of offences. https://citrushr.com
Secondly, the new tax laws governing the self-employed workforce have already started to filter through to those who are VAT registered.
Anna Delves of Simply Business explains more about the tax law changes & how this could affect all self-employed workers.
“In 2017, the government announced a number of changes to the Self-Assessment process, including quarterly tax returns and removing the option to file tax returns by paper. Most of these changes have been put on hold, for now, but it’s worth keeping an eye on things should anything change.
As it stands, only businesses who pay VAT will have to submit their tax returns electronically, and only by 2019. However, the government have frequently said that they want to become ‘one of the most digitally advanced tax administrations in the world’, so it’s likely these changes will impact all small businesses in future.” https://www.simplybusiness.co.uk
Are any of these changes likely to put off the large proportion of millennials which are predicted to enter the self-employed work force in 2018? It is unlikely, as so many young entrepreneurs have & are already making waves in their chosen industries. Bright, tech savvy, creative individuals bringing a wealth of new ideas, skills & technologies to the work force, with a determination to make it on their own.
One such entrepreneur is Laura Nixon of Nixon Point. We spoke to her about her journey to self-employment & her vision for the future of Nixon Point (https://www.facebook.com/nixonpointcostumes/).
What did you do for a living prior to self-employment?
I worked in a small seafront cafe that my sister ran over the summer. I made tea and fried chips. It was hotter than hell but we had a great time.
When did you make the shift to being self-employed & what prompted you to do so?
I wanted/ want to be insanely rich. My motivation for everything I do is financial. That’s what business is.
What would you say has been your biggest learning curve?
I have learning curves constantly. The biggest learning experience was reading “The E myth” by Michael E.Gerber. Anyone interested in being a successful self-employed person needs to buy and read that book.
What is your biggest success to date?
The last dress I made. My next biggest success will be the next one I make.
What is your vision for the future of Nixon Point?
I am going to design a collection for Brighton fashion week, then London Fashion week, then Paris.
Alongside that I am going to go into mass production with my evening wear that caters for the LGBTQ community and those who do not conform. I’m going to be very rich and wear my own clothes every day.
Secondly, I am going to share my accidental journey back to self-employment.
I have had a varied career path from electronics buyer, to self-employed nail technician. However, my most reason profession saw me enter the education sector as a FT teacher of English in the secondary school sector. I gained my degree in English & Art in 1995 & trained as a teacher 2009-2010. I loved teaching. Yes the hours were insanely long, some of the young people in my care were challenging & the expectations on the teaching work force were/are immense. However, being part of so many young people’s journey through education & enjoying the laughter & challenges was humbling every single day & for the most part, I loved it.
But, during the last full year of teaching, I was getting restless. Although I had always thought that in teaching no two days could be the same, actually going to the same place, the same classroom each day, was really beginning to feel no different than going to an office. In addition, the profession has changed vastly even in the few years I was teaching. Therefore, after much soul searching & questioning of myself & a brief spell being signed off for stress in Dec 2017, I took a long look at where I had got to & I took the huge decision to step away from it all.
Leaving teaching has been a very odd experience. Although I have been working for my partners (Daniel) business since it’s inception last year; it has to date been done for love, not financial gain. Therefore, in January this year although I still had work to do, I was not being paid. I tried to find other work, but I was only looking for part time, so I could still dedicate time to my partners business. Then out of the blue in early February, Helena Parrott – Director/VA for Virtually Smart Ltd contacted me, saying she had seen my posts on Facebook seeking PT work & wondered if I would like to chat.
Until I met Helena, I really didn’t have any idea what a VA (Virtual assistant) was. I am now working for Helena a few hours a week supporting her with her social media presence, her administration, research tasks, invoicing & any other additional tasks she needs me to undertake. I am loving the freedom & the ability to channel my academic/creative talents in another direction.
In addition to the work I undertake for Virtually Smart Ltd, I have over the past weekend, moved my home office to my partners business mono motorcycles & vehicle security where my role as Business/Marketing Manager & Communications Officer can now flourish. I am now the first port of call for customers coming in to the work shop, on the phone & via email. This means I can support Daniel & help productivity at mono motorcycles, while also being able to log on remotely to complete my VA responsibilities for Virtually Smart Ltd.
My vision for my future is to expand my VA customer portfolio, by offering my skills set to other business owners. In addition, I am formulating social media strategies & redefining the mono motorcycles business plan, policies/procedures & advertising campaigns for 2018-2019.
Everything has changed, simply everything. I am surviving on very little money (which is scary), after having a £35k per year job, but … I am free to plan my day around my own movements, I am starting to adapt to a flexible working ethic & I am loving learning so many new things. My mind is active all the time & I am thriving on the creativity I can bring to every day.
