Starting a side hustle?

Are you thinking of finally getting started on a side hustle that you’ll enjoy doing and be rewarding at the same time? Then, setting yourself up as a freelancer, or better known as self-occupied or self-employed individual, is your next big step. Apart from the day to day challenges that everyone mentions in relation to the setting up of a new business such as being firm with deadlines, prioritising tasks, being proactive and making good use of your weekends, there are other challenges that are even more important for the successful operation of a side business and these require much attention in order to lead this side hustle to a full-time business.

Such include setting up and abiding to business plans, Jobsplus registrations, social security contribution payments if required, VAT registration, tax and more. For these tasks to be handled successfully and within the local legal frameworks, one might opt to seek assistance from professionals in the field, both for guidance and for efficiency. Here’s why and how ticking off all the above-mentioned tasks will help your business run smoothly, from the very first step to setup the business until the day to day running of it.

Business plans

Identifying the strengths and possible weaknesses of a business will help put the business owner in a better position to be prepared for anything that might come along the way during the course of business espescially if one is looking to grow it into a main full-time employment and main income generator. In this respect, the self-employed individual might want to refer to professionals offering business advisory services who will ensure that the client gets all the required assistance in relation to starting a business. Such assistance includes corporate finance, loan applications and more.

Tax and social security contributions

As per Maltese law, any employment should be registered with Jobsplus. Any employee needs to have social security contributions and taxes taken care of by the employer. However, when setting up a business on your own, these contributions and payments fall under the responsibility of the business owner. Part-time self-occupied individuals who are also in full-time employment in the Maltese islands are eligible to apply for a 10% tax rate if they do not engage more than 2 part-time employees with them. In addition to taxes, one must also pay social security contributions. In Malta, these must be settled in April, August and December. The contributions are calculated at a 15% rate on the yearly income of the previous year.

Accounting

For any business to be successful, it is important to keep track of all expenses and have all paperwork and back-office work in check. Hence, bookkeeping is utterly important as maintaining proper paperwork will help run a business smoothly, eliminating any risks of mismanagement and poor cash flow.

Accounting services also include tax and VAT registrations, returns and compliance as well as payroll services. Seeking assistance from professionals in the field will ensure that all these are kept in order and that the business owner doesn’t miss any important deadlines. Accounting companies provide clients with a dedicated account manager who will hand handle the client through every step of the way to ensure that the business will be successful, and all accounting needs are addressed on time.

If freelancing is in your pipeline so that you can start a side hustle, you can get all the information and assistance you require from our team at Fairwinds Management Limited. Our experienced team offers business solutions and makes sure that every check box for your new business venture is ticked off in a timely manner. Get in touch with us on info@fairwindsmanagement.net for assistance.

Article written by Charlene Sciberras and originally published first here: https://fairwindsmanagement.net/starting-a-side-hustle/

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Fairwinds Management Limited

Fairwinds Management Limited is made up of ambitious professionals operating in Malta having experience in corporate service, accounting, legal and tax advice.