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What are the options?

There are different ways of being self-employed:

• More from Business Link about becoming self-employed Opens new window

The challenges

If you run your own business, there is no holiday or sick pay, no pension and no regular income. There is every chance that you will have to work longer, irregular hours and sometimes weekends. You will also have to submit your own tax accounts.

• Your self-assessment statement of accounts (money, tax and benefits)

The benefits

Benefits include not having to work for somebody else, self-fulfilment, making full use of your experience, talents and abilities, financial independence and flexible working hours.

First steps to self-employment

Before you become self-employed, you will have to research and develop your business idea. Then prepare a business plan that reflects what you need to do to set up and run a business.

The Citizens Advice Bureau has a self-employment checklist.

• Citizens Advice Bureau self-employment checklist Opens new window

The national business advice service Business Link offers a business start-up organiser.

• Business Link self-employment start-up organiser Opens new window

Funding and grant schemes available for over 50s

You may be able to get money from grants from charities or trusts or loans from banks and building societies.

The Grants and Support Directory (GSD) is a potential source of help with start-up or business development.

• Business Link - grants and support directory (opens in new window) Opens new window

Helpline for the newly self-employed

HM Revenue & Customs (HMRC) has a helpline for the newly self-employed people. You can call 08459 15 45 15 and request the guide 'Starting Up in Business'.

New Enterprise Allowance

New Enterprise Allowance is aimed at helping eligible customers start their own business or become self-employed.

To be eligible you must be 18 or over and been claiming Jobseekers Allowance continually for six months or more.

• New Enterprise Allowance - business support for jobseekers (employment section)

Training courses

Business Link offers advice on training for those considering starting up in business.

• Business Link training directory Opens new window

Advice and support

The Prince's Initiative for Mature Enterprise (PRIME) is a not-for-profit national organisation dedicated to helping people over 50 set up in business. You can call the free helpline on 0800 783 1904 for information.

Business Link is a good source of information and advice. You can call the Business Link helpline on 0845 600 9006, (minicom on 0845 606 2666).

The Citizens Advice Bureau has an advice section for the self-employed.

• Business Link Opens new window

• Self-employment advice on Citizens Advice Bureau website Opens new window

• PRIME business club Opens new window

What are financial and tax implications of the decision?

You will need enough money to live on while you start up the business, plus funding for start-up costs.

You will also be responsible for paying your own tax and National Insurance. You may choose to have an accountant or alternatively you can submit a self-assessment tax return online.

If you are starting up a new business through New Deal, you get the same benefits as you got before. You might also be eligible for a top up. If you find work through New Deal, there are different benefits on offer. These include tax credits, to make sure you're better off in a job than on benefits.

• Self-assessment - your tax return (money, tax and benefits section)

• Find your nearest Jobcentre Plus office Opens new window

Working after State Pension age

You will have to pay tax on your State Pension if you are still in paid work when you receive it. See 'Working past State Pension age - your options' for more information.

• Working past State Pension age - your options

Useful contacts

• Work and career contacts

• Over 50s contacts