Becoming self-employed and working in home care can be extremely rewarding, but there are some concerns that may arise when carers are first breaking into the world of self-employment.
We hear these concerns when we mention becoming self-employed. Does this mean I’ll be taxed more? It will be really complicated! I’ll need a full-time accountant! I’ll be out of pocket.
Myth 1: Being self-employed is risky
It may be true that job security is more of an uncertainty in the world of the self-employed. But are any jobs not in danger of being made redundant?
You can be self-employed with CareBIG but also have a job, possibly as a paid carer at another employer at the same time. Doing it this way means there is no drop in your earnings whilst you build up your CareBIG client base. Then you can decide if you need to focus just on being self-employed once you have sufficient bookings.
Myth 2: Self-employment is more stressful than permanent employment
A lot of carers join CareBIG because they are unhappy working for agencies. They feel respected by the people they provide care and support to, but not their employers. They are often sent all over the city to visit service users meaning they have to spend large parts of the day in traffic, worried about arriving on time all because their workload is unrealistic. After all this they earn just above the minimum wage! With CareBIG you manage your own clients so it’s up to you which clients to accept or reject. You can fit them around your existing responsibilities so its flexible and you are in control. You are your own boss and your CareBIG profile is your business. It’s less stressful and it allows you to concentrate on what’s important, giving high quality care.
Myth 3: Care users won’t want to employ a self employed carer
Care users usually look for home care services via an agency, but this is expensive. Typically they charge £18+ per hour and only pay the carer around £7.50 per hour. With CareBIG the care user pays only the carer hourly rate which starts at £10! All of this goes to the carer direct so it’s cheaper for care users and pays better for carers. Both sides win! We carry out the same screening process as an agency would, we interview, gather references and complete a DBS check. CareBIG is just an easier, cheaper way to find a local personal care assistant, instead of using an agency or advertising in a shop window for home help.
Myth 4: I’ll have to work ridiculously long hours as I’ll be taxed more.
With CareBIG all carers earn a minimum of £10 per hour. This is significantly more than agency carers earn. You can set your own rate dependent on the use of your car, client location, intensity of the role etc. You will not have to work longer hours to earn the same money, you could work a lot less. Self-employed workers are not taxed more as tax rates are roughly the same for both self-employed and employed workers
Myth 5: You have to do all of your accounting by yourself
When people hear the word ‘self-employed’ they tend to think of keeping piles of receipts and spending hours organising business and tax affairs. However, with a little planning there is no need to be put off. You have to complete a self-assessment tax return at the end of the tax year to disclose your earnings to the taxman. You need to keep records of your earnings or refer back to your bank statements. You tell the tax man how much you earned and they calculate your tax responsibilities for you. There are clever online tools to help you keep track of how much to put aside for tax throughout the year depending how much you earn. There are also accountants who can help should you get stuck with anything.