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Tips for self-employed clients

There are now 4.81 million self-employed people working in the UK but only 13% are contributing to a pension according to The Taylor Review’s recent stats.

Being self-employed allows freedom to work how and when you want however this also means the responsibilities that come with it are not to be overlooked especially when it comes to finances. Only 13% of self-employed people contribute to a pension compared to the 68% of employees with workplace pensions. Currently the self-employed aren’t required to automatically enrol themselves and are not able to benefit from employer contributions.

Here are our top 5 financial planning tips for your self-employed clients.

  1. Make the most of tax relief available from the Government with paying in to a pension. You can easily work out what your client is entitled to with our tools and calculators.
  2. Claim back any unused or missed tax-relief for your higher-rate tax payer clients.
  3. Pay in to a pension for spouses or partners so that both benefit from tax-relief.
  4. Make sure the National Insurance contributions are correct which is changing as of 6 April 2018, meaning those self-employed will not qualify for any benefit entitlements such as maternity leave and state pension.
  5. Consider an off-set mortgage to hold cash savings or as a rainy-day fund which could reduce the interest payable. Find out more about off-set mortgages.