To discourage self employment for adult daughter

I don't think it's right to say anyone can move out. Maybe in our generation we could but times are very different now.
I'm not here to discuss that however.

I'm not being controlling. Just concerned for her future especially if she stays single.

I wouldn't be worrying about your daughter's pension, it's now that's important.
If she wants to start her own business encourage her, it will be better for her health.

My son set up his own business a few years ago and I backed him all the way . He's made a great success of it . I always encourage my A/C to do what will make them happy in life which then makes me happy too.

I'm sure your daughter would appreciate your support. You've been given some good advice by other G/N's .

My advice is to stop saying anything about it. I'm sorry but you do sound rather interfering and I think any 40 year old would get angry.

You've given your opinion, now leave her to make her own choices.

I think that at 40 years old, your daughter no longer needs you to worry about her.

Also, I think you meant that in your area, only high earners can live there. Anyone can move out, regardless of their wages. Its a big, big world.

I have other adult kids so it wouldn't be fair if I did this for her alone.
It does all sound quite involved. I know she can make her own decisions but just worry she won't have made enough to get a proper pension. She just gets angry when I say anything about it.

SporeRB

If you are wealthy and concern about your daughter’s pension, what you can do is gift your daughter up to £3k each year. She can then use the gift to top up her private pension and pay her national insurance for her state pension whilst she sorts herself out career wise.

With RA, self employment may be the better option for your daughter. She could choose her hours and managed her illness at the same time.

My daughter is a high earner and she has just quit her job with nothing line up. She has quite a bit of savings behind her but like most people working for the private sector, her pension is very small. She is thinking of starting her own business.

I told her that is the best decision since her health is more important than money. If the business does not work, well, she can always go back to the corporate world.

I was attempting to quote.

This is what I believe, help her now.

This. Use your money now, to help her.

At her age I would think she can make her own decisions. She has managed to save and you are wealthy, I do not see a problem.

SporeRB one of my daughters has recently done the same.
She's not earning the same money but is in control.

I wouldn't discourage her if she is miserable as she is.

Maybe if money is very tight she could top up with a straightforward part time job till her business takes off.

If you are wealthy and concern about your daughter’s pension, what you can do is gift your daughter up to £3k each year. She can then use the gift to top up her private pension and pay her national insurance for her state pension whilst she sorts herself out career wise.

With RA, self employment may be the better option for your daughter. She could choose her hours and managed her illness at the same time.

My daughter is a high earner and she has just quit her job with nothing line up. She has quite a bit of savings behind her but like most people working for the private sector, her pension is very small. She is thinking of starting her own business.

I told her that is the best decision since her health is more important than money. If the business does not work, well, she can always go back to the corporate world.

I think you need to back her up and support her in her plans. The sort of work she is doing is unsuitable for someone with RA. It is good that she is looking at other possibilities.

You should be more concerned about your daughter’s current health and awful work situation than about any future pension. You say that you are wealthy and seem to imply you will be leaving her well provided for after your death. How about spending some of your wealth now to support her while she makes her own way out of what has become an intolerable situation?

I still think she is better off being employed by someone else.

Not if it making her unhappy and sick. At 40 your daughter has nearly 30 years of employment ahead of her - if she can find a way of enjoying work for that time then I really don't think you should stand in her way.

After decades of employment I started my own business and was extremely happy, contributed to a pension scheme and financially stable until and after I retired.

All I needed to know to set myself up I learned from a book I took out of the local library that was called something like, "How to start your own gardening business."

This might be the making of your daughter. If she tries and succeeds it will be wonderful. If she doesn't enjoy it then there will always be another job she can take. I bet she thrives and loves it.

Your limited knowledge about working for oneself makes me think you are not well placed to advise her.

You stress you are very wealthy ( your words) and she has ‘lots of money’ so why shouldn’t she try to branch out on her own are you sure you are not being over cautious, she can set up a private pension for herself and pay an accountant once a year onto make sure everything is in order My young grandson has done just that and the accountant takes all the money worries off his shoulders

MOnica explain it very well…….the only thing I would add is to suggest your daughter takes a short course at a local college on small business set-up if there’s something available. The more knowledge she has, the better she will be prepared …….. HMRC aren’t there to catch anyone out after all but correct background knowledge of business regulations is a bonus surely.

TopsyandTim I cannot emphasise too strongly how important it is for someone becoming a sole trader to make sure they are set up properly with proper accounting for every penny she earns, making sure she pays her NI and sets aside money for income tax.

The fact that you did not realise that she would have to make contributions to NI, shows how unfamiliar you are with the complexities of being a self employed and it is so easy, with the best of intentions to find yourself with a burgeoning debt to the HMRC.

If you ever have had a cursory read of why someone, anyone, has gone bankrupt, or a small firm, and some bigger ones, has gone into liquidation 9 times in 10, their main creditor is HMRC.

I can see no reason, given your daughter's health problems and your support, why life will not be much easier for your daughter self employed - and without the stress, her health will probably improve as well,

There are sites online that can help her like this one www.money.co.uk/business/how-to-register-as-self-employed . Most self employed people I know have usually consulted an accountant or someone similar when they set up as self-employed and thereafter, pay an accountant once a year to deal with their tax return. There are expenses you can claim to set against tax and an accountant will know all about this

IMO what your D needs is support and encouragement.

TopsyAndTim

I'm interested what makes you say she is low in confidence, is it because she isn't married and at home ? We live in a highly expensive area where only very high earners can afford to move out.

I didn't actually know all of that Monica. For some reason I thought NI contributions were voluntary if you were self employed. I thought it was fairly standard if you were a sole trader which she is and so I don't think she will need an accountant. Or is it tricky to do? Generally I feel being employed by someone is better but she says she can't cope and also that the work just isnt coming through anymore hence wanting to concentrate more on self employment.

If you stopped undermining her ability to make her own decisions I'm sure she would be fine.

She has all the invoices stored on her phone.
People say it's easy to set up but we will see.
I still think she is better off being employed by someone else but she says she can't manage what she is doing at present and wants to do this instead.
Working has always been important to her but obviously tricky with the condition she has.

I don't think she will need an accountant.

I've never used an accountant.

I read up carefully as to what expenses I can legitimately claim on the Inland Revenue website eg use of car, purchases made necessary to the business, professional insurances and memberships.

My husband helped me set up my initial spreadsheets to record my income and expenditure and I've developed these as I've gone along.

You do have to tell your local tax office that you want to register as self-employed, it's quite straightforward.
Depending on what line of work your daughter is doing there will be recognised business expenses she can offset against her earnings in order to calculate her accounts and net (taxable) profit.

For some reason I thought NI contributions were voluntary if you were self employed.

No!! 🤣

I've been self-employed for 37 years (UK).

When I was about 30 I saw a financial advisor and he set up a private pension plan for me.
I contributed an amount I felt comfortable with each month to start with, the advisor sensibly set the policy up so my contributions would rise by 5% each year.
As the years went by I voluntarily increased my monthly contributions above this amount and have ended up with a respectable lump sum 🙂

In addition as a self-employed person I paid National Insurance through my tax return which contributed to my state pension, so I now get the full (new) pension.

So don't despair on your daughter's behalf.
It would be useful for her to talk to a professional financial advisor and discuss her options.

I'm interested what makes you say she is low in confidence, is it because she isn't married and at home ? We live in a highly expensive area where only very high earners can afford to move out.

I didn't actually know all of that Monica. For some reason I thought NI contributions were voluntary if you were self employed. I thought it was fairly standard if you were a sole trader which she is and so I don't think she will need an accountant. Or is it tricky to do? Generally I feel being employed by someone is better but she says she can't cope and also that the work just isnt coming through anymore hence wanting to concentrate more on self employment.