Keeping my side gig going - I feel it is time to let it go
Discussion
Just for the mods.. Not looking to sell it or do anything with it. Just looking for opinions!
Dear All!
This is something that has been playing on my mind for a while now and i'd like your considered input, being business types but also understanding that sometimes the juice isn't worth the squeeze.
I have a sideline writing IT articles, ghostwriting for big companies (Think enterprise hardware manufacturers) and the odd video here and there. I am at the top end in terms of rates and the equivalent of a couple of hours a night brings me a modest 4, maybe 5 figure income on a good year after tax. If you visit some of the IT news sites you will have no doubt come across my work.
Many years ago it started out as fun and a bit of cash. Back then I was really skint. Now it's a chore. Yes, the money is nice but it completely takes over my head (Must do x for y by Monday etc and it just preys on my mind most days, along with the rest of the stuff in the pipeline).
It has become even less bearable because of my relative success I have moved up a tax band as well in the day job. In reality this means that by the time it lands in my hands (Accountant, cloud costs, subscriptions etc) I am ending up with less than half the billed amount.
I don't really need the money any more but once I give it up, I won't be able to get back in the game because this game, like most, is who you know. I have the right connections in the right places.
Back when I started this game as an LTD company, the tax free allowance in dividends was £10K... How I miss those days! Now you get next to nothing in tax free allowances and the huge jump in dividend tax from 8 to 38 (IIRC), plus 19% CORP tax makes it hardly worth the bother.
I have to make a decision relatively soon because new financial year is just round the corner (although as my accountant says, you have to earn it to pay on it) and I am just not enjoying it any more. It also burns my pee that like most people in this forum we seem to be the cash cows that underpin the system whilst all the free loaders get my money to do who knows what with (a bit of an emotive subject, but that's how I feel)
Has anyone been in a similar situation ? What did you decide to do ? How did it work out ?
As a work around to the tax thing it has been suggested I get the company to do a pension scheme and put 100% in there. (just as an aside)
Dear All!
This is something that has been playing on my mind for a while now and i'd like your considered input, being business types but also understanding that sometimes the juice isn't worth the squeeze.
I have a sideline writing IT articles, ghostwriting for big companies (Think enterprise hardware manufacturers) and the odd video here and there. I am at the top end in terms of rates and the equivalent of a couple of hours a night brings me a modest 4, maybe 5 figure income on a good year after tax. If you visit some of the IT news sites you will have no doubt come across my work.
Many years ago it started out as fun and a bit of cash. Back then I was really skint. Now it's a chore. Yes, the money is nice but it completely takes over my head (Must do x for y by Monday etc and it just preys on my mind most days, along with the rest of the stuff in the pipeline).
It has become even less bearable because of my relative success I have moved up a tax band as well in the day job. In reality this means that by the time it lands in my hands (Accountant, cloud costs, subscriptions etc) I am ending up with less than half the billed amount.
I don't really need the money any more but once I give it up, I won't be able to get back in the game because this game, like most, is who you know. I have the right connections in the right places.
Back when I started this game as an LTD company, the tax free allowance in dividends was £10K... How I miss those days! Now you get next to nothing in tax free allowances and the huge jump in dividend tax from 8 to 38 (IIRC), plus 19% CORP tax makes it hardly worth the bother.
I have to make a decision relatively soon because new financial year is just round the corner (although as my accountant says, you have to earn it to pay on it) and I am just not enjoying it any more. It also burns my pee that like most people in this forum we seem to be the cash cows that underpin the system whilst all the free loaders get my money to do who knows what with (a bit of an emotive subject, but that's how I feel)
Has anyone been in a similar situation ? What did you decide to do ? How did it work out ?
As a work around to the tax thing it has been suggested I get the company to do a pension scheme and put 100% in there. (just as an aside)
I am far from an expert, but can you not claim loads of expenses for your side gig?
Buying tech equipment, some "client entertainment" like dinners or gifts, travel, etc etc?
Might make it more palatable if you are able to deduct a lot of expenses for things you would pay for anyway if you did not have the side gig?
Buying tech equipment, some "client entertainment" like dinners or gifts, travel, etc etc?
Might make it more palatable if you are able to deduct a lot of expenses for things you would pay for anyway if you did not have the side gig?
matrignano said:
I am far from an expert, but can you not claim loads of expenses for your side gig?
Buying tech equipment, some "client entertainment" like dinners or gifts, travel, etc etc?
Might make it more palatable if you are able to deduct a lot of expenses for things you would pay for anyway if you did not have the side gig?
You can claim legitimate business related costs. The OP is using an accountant so I would assume that the accountant is doing what he/she can to mitigate his client's tax liabilities.Buying tech equipment, some "client entertainment" like dinners or gifts, travel, etc etc?
Might make it more palatable if you are able to deduct a lot of expenses for things you would pay for anyway if you did not have the side gig?
CoffeeGuy said:
Just for the mods.. Not looking to sell it or do anything with it. Just looking for opinions!
Dear All!
This is something that has been playing on my mind for a while now and i'd like your considered input, being business types but also understanding that sometimes the juice isn't worth the squeeze.
I have a sideline writing IT articles, ghostwriting for big companies (Think enterprise hardware manufacturers) and the odd video here and there. I am at the top end in terms of rates and the equivalent of a couple of hours a night brings me a modest 4, maybe 5 figure income on a good year after tax. If you visit some of the IT news sites you will have no doubt come across my work.
Many years ago it started out as fun and a bit of cash. Back then I was really skint. Now it's a chore. Yes, the money is nice but it completely takes over my head (Must do x for y by Monday etc and it just preys on my mind most days, along with the rest of the stuff in the pipeline).
It has become even less bearable because of my relative success I have moved up a tax band as well in the day job. In reality this means that by the time it lands in my hands (Accountant, cloud costs, subscriptions etc) I am ending up with less than half the billed amount.
I don't really need the money any more but once I give it up, I won't be able to get back in the game because this game, like most, is who you know. I have the right connections in the right places.
Back when I started this game as an LTD company, the tax free allowance in dividends was £10K... How I miss those days! Now you get next to nothing in tax free allowances and the huge jump in dividend tax from 8 to 38 (IIRC), plus 19% CORP tax makes it hardly worth the bother.
I have to make a decision relatively soon because new financial year is just round the corner (although as my accountant says, you have to earn it to pay on it) and I am just not enjoying it any more. It also burns my pee that like most people in this forum we seem to be the cash cows that underpin the system whilst all the free loaders get my money to do who knows what with (a bit of an emotive subject, but that's how I feel)
Has anyone been in a similar situation ? What did you decide to do ? How did it work out ?
As a work around to the tax thing it has been suggested I get the company to do a pension scheme and put 100% in there. (just as an aside)
This is the bit that stands out for me. If it's not fun any more how much would you have to earn to make it fun? The answer to that is probably a lot more than you are making, especially if you put all the net EBITDA into a pension scheme and there's virtually no instance reward to give the dopamine hit. When the fun stops stop and all that. Dear All!
This is something that has been playing on my mind for a while now and i'd like your considered input, being business types but also understanding that sometimes the juice isn't worth the squeeze.
I have a sideline writing IT articles, ghostwriting for big companies (Think enterprise hardware manufacturers) and the odd video here and there. I am at the top end in terms of rates and the equivalent of a couple of hours a night brings me a modest 4, maybe 5 figure income on a good year after tax. If you visit some of the IT news sites you will have no doubt come across my work.
Many years ago it started out as fun and a bit of cash. Back then I was really skint. Now it's a chore. Yes, the money is nice but it completely takes over my head (Must do x for y by Monday etc and it just preys on my mind most days, along with the rest of the stuff in the pipeline).
It has become even less bearable because of my relative success I have moved up a tax band as well in the day job. In reality this means that by the time it lands in my hands (Accountant, cloud costs, subscriptions etc) I am ending up with less than half the billed amount.
I don't really need the money any more but once I give it up, I won't be able to get back in the game because this game, like most, is who you know. I have the right connections in the right places.
Back when I started this game as an LTD company, the tax free allowance in dividends was £10K... How I miss those days! Now you get next to nothing in tax free allowances and the huge jump in dividend tax from 8 to 38 (IIRC), plus 19% CORP tax makes it hardly worth the bother.
I have to make a decision relatively soon because new financial year is just round the corner (although as my accountant says, you have to earn it to pay on it) and I am just not enjoying it any more. It also burns my pee that like most people in this forum we seem to be the cash cows that underpin the system whilst all the free loaders get my money to do who knows what with (a bit of an emotive subject, but that's how I feel)
Has anyone been in a similar situation ? What did you decide to do ? How did it work out ?
As a work around to the tax thing it has been suggested I get the company to do a pension scheme and put 100% in there. (just as an aside)
Could you do less for a more select group of clients, to keep your hand in and your network live, while you make a more permanent decision? Could you do more to make it your main gig?
What risk does AI present? Can you get in front of that by developing an AI based product for what you do and licensing that?
If you are really planning on stopping the writing, and are not bothered about losing clients, then perhaps you could a middle ground first.
Double your rate to all your clients, and see what kind of response you receive. Even if 50% of your clients stop giving you work, you will still earn the same amount but with only 50% of the current workload.
Double your rate to all your clients, and see what kind of response you receive. Even if 50% of your clients stop giving you work, you will still earn the same amount but with only 50% of the current workload.
Hey Everyone,
Thanks for the input.. To answer a few of the questions.. Why am I bothered if it goes? Only because it's a decent fall back/hobby job. Its one of those that you could do to stop getting bored. However, it's very true. If it's not worth it, it's not worth it. No point doing something you dont enjoy if you dont need to.
As to AI overtaking... not yet, not at this point in the market. AI is good enough for general content but the stuff I produce (for most of my clients). I am sure in a few years that will change. RIght now the stuff is high end and very specific so not really worried about it.
And yep, the accountant sorts the taxes so knows what I can claim for.
I think, on reflection I will probably wind it up and take the cash to do something with. Just a bit of a shame really because its the end of an era.
Thanks for the input.. To answer a few of the questions.. Why am I bothered if it goes? Only because it's a decent fall back/hobby job. Its one of those that you could do to stop getting bored. However, it's very true. If it's not worth it, it's not worth it. No point doing something you dont enjoy if you dont need to.
As to AI overtaking... not yet, not at this point in the market. AI is good enough for general content but the stuff I produce (for most of my clients). I am sure in a few years that will change. RIght now the stuff is high end and very specific so not really worried about it.
And yep, the accountant sorts the taxes so knows what I can claim for.
I think, on reflection I will probably wind it up and take the cash to do something with. Just a bit of a shame really because its the end of an era.
CoffeeGuy said:
Hey Everyone,
Thanks for the input.. To answer a few of the questions.. Why am I bothered if it goes? Only because it's a decent fall back/hobby job. Its one of those that you could do to stop getting bored. However, it's very true. If it's not worth it, it's not worth it. No point doing something you dont enjoy if you dont need to.
As to AI overtaking... not yet, not at this point in the market. AI is good enough for general content but the stuff I produce (for most of my clients). I am sure in a few years that will change. RIght now the stuff is high end and very specific so not really worried about it.
And yep, the accountant sorts the taxes so knows what I can claim for.
I think, on reflection I will probably wind it up and take the cash to do something with. Just a bit of a shame really because its the end of an era.
Every dog has its day. A business that filled you with joy and optimism in 2010 won't necessarily do so in 2024. Things change, you change, the world changes, and every so often you have to reinvent (or evolve). Luckily in your case it's a hobby, so there's no pressure to reinvent or evolve. You can just just say 'fThanks for the input.. To answer a few of the questions.. Why am I bothered if it goes? Only because it's a decent fall back/hobby job. Its one of those that you could do to stop getting bored. However, it's very true. If it's not worth it, it's not worth it. No point doing something you dont enjoy if you dont need to.
As to AI overtaking... not yet, not at this point in the market. AI is good enough for general content but the stuff I produce (for most of my clients). I am sure in a few years that will change. RIght now the stuff is high end and very specific so not really worried about it.
And yep, the accountant sorts the taxes so knows what I can claim for.
I think, on reflection I will probably wind it up and take the cash to do something with. Just a bit of a shame really because its the end of an era.
k it' and buy a boat 
Ooh – this resonates with me!
So, around 15 years ago I found myself becoming recognised as a bit of a unique guru in my particular field (Communications for Waste Management), with a 25% share in the company that employed me.
I started to write articles, opinion pieces, thought leadership papers, etc. Some were published in trade journals, some I published myself as blogs. I set up a social media presence and became what today might be referred to as an ‘influencer’ (known as The Waste Communicator!). This all led to invitations to speak at conferences and the occasional invitation to provide expert commentary on TV and Radio programmes.
This all took a lot of time. None of this I got paid for. It actually cost money. But.... it all added credibility when it came to bidding for the day-job stuff. Our clients were public sector so we had to tender for work and being able to include all these things added to the quality of the bids we made, demonstrating recognition of peers as a key attribute when setting out the teams we’d apply to each project.
The downside was that I started to buy into my own hype and believed it necessary to keep pushing out content and doing the conferences because that was winning us the work. But, it wasn’t. Reputationally, it was doing me or the company no harm but in terms of winning us fee-paying work made not the slightest difference. I came to recognise this around two years before I pulled back from doing it. I don’t mind admitting that ego played a part in me sticking with it.
2019 I started out on my own, proper and dropped all the superfluous stuff. I occasionally respond to requests from radio to provide expert commentary on stuff (I quite enjoy the whole radio thing so this isn’t a chore) and do one conference a year on average but haven’t written an article for ages yet am winning more work than ever. Freeing myself of the shackles of perceived (misperceived) public demand has been liberating.
The main difference is that you are getting paid. If the amount you’re banking isn’t lighting your fire and you’re not enjoying the process, then, well, you’ve answered your own question. You need to consider the ROI on the additional time not doing this additional work will yield. That return need not necessarily be financial.
Don’t know if that helps but hopefully provides a little relevant perspective.
So, around 15 years ago I found myself becoming recognised as a bit of a unique guru in my particular field (Communications for Waste Management), with a 25% share in the company that employed me.
I started to write articles, opinion pieces, thought leadership papers, etc. Some were published in trade journals, some I published myself as blogs. I set up a social media presence and became what today might be referred to as an ‘influencer’ (known as The Waste Communicator!). This all led to invitations to speak at conferences and the occasional invitation to provide expert commentary on TV and Radio programmes.
This all took a lot of time. None of this I got paid for. It actually cost money. But.... it all added credibility when it came to bidding for the day-job stuff. Our clients were public sector so we had to tender for work and being able to include all these things added to the quality of the bids we made, demonstrating recognition of peers as a key attribute when setting out the teams we’d apply to each project.
The downside was that I started to buy into my own hype and believed it necessary to keep pushing out content and doing the conferences because that was winning us the work. But, it wasn’t. Reputationally, it was doing me or the company no harm but in terms of winning us fee-paying work made not the slightest difference. I came to recognise this around two years before I pulled back from doing it. I don’t mind admitting that ego played a part in me sticking with it.
2019 I started out on my own, proper and dropped all the superfluous stuff. I occasionally respond to requests from radio to provide expert commentary on stuff (I quite enjoy the whole radio thing so this isn’t a chore) and do one conference a year on average but haven’t written an article for ages yet am winning more work than ever. Freeing myself of the shackles of perceived (misperceived) public demand has been liberating.
The main difference is that you are getting paid. If the amount you’re banking isn’t lighting your fire and you’re not enjoying the process, then, well, you’ve answered your own question. You need to consider the ROI on the additional time not doing this additional work will yield. That return need not necessarily be financial.
Don’t know if that helps but hopefully provides a little relevant perspective.
I have a similar dilemma with different circumstances. It’s my main business and works well but while I am not quite ready for the retirement thread yet I definitely do not need to do as much as I am right now.
Managing the workload downwards is tricky and takes a lot of self discipline but I am just coming towards the end of a four week Christmas break which is a gain in itself but also gives me some time and separation from the business to work out how to make the next improvements on how I manage everything.
It could be worth not taking any more work on until the end of February, not long enough that you lose out on your contacts but enough to have a break, see how it feels and consider options.
Managing the workload downwards is tricky and takes a lot of self discipline but I am just coming towards the end of a four week Christmas break which is a gain in itself but also gives me some time and separation from the business to work out how to make the next improvements on how I manage everything.
It could be worth not taking any more work on until the end of February, not long enough that you lose out on your contacts but enough to have a break, see how it feels and consider options.
So a bit of an update...
The outstanding work has been closed out over the last couple of days. Pipeline is empty (It goes in quarters, with planning per quarter, in advance) It's empty because I didn't take anything on (didn't have the quarterly meeting).
That said there are still some jobs inbound. Those jobs I have reached out to the providers and told them that "For tax purposes" it all needs to be paid by mid march.
Will see how it goes and if indeed having my time back is worth more than the money.
The outstanding work has been closed out over the last couple of days. Pipeline is empty (It goes in quarters, with planning per quarter, in advance) It's empty because I didn't take anything on (didn't have the quarterly meeting).
That said there are still some jobs inbound. Those jobs I have reached out to the providers and told them that "For tax purposes" it all needs to be paid by mid march.
Will see how it goes and if indeed having my time back is worth more than the money.
Lol doubling the fees would get very interesting. I suspect it would be very much a "Thanks but we will pass". The thing about the content industry is that they are notorious for poor payment at the bottom of the market.
To give an example, I did some work where I had to go to London and see a very specialist company that was involved in digital forensics. It cost me travel, time and an overnight stay. I knew I had a good piece but some of the biggest players where just like "We will give you a link in the footer.". Keep in mind the value of this was approximately £1500! I don't want paying in exposure, I want real cash or bank transfer.
Within a day or two it was sold to another media outlet at the original price, no questions. My rate usually averages $1 a word so it's not exactly bad money.
The top of the market is quite different. If you are a specialist (I view myself as a bit of specialist) the rates for a one hour pre-sales call for a vendor can be £1000. It's wild but very variable.
To give an example, I did some work where I had to go to London and see a very specialist company that was involved in digital forensics. It cost me travel, time and an overnight stay. I knew I had a good piece but some of the biggest players where just like "We will give you a link in the footer.". Keep in mind the value of this was approximately £1500! I don't want paying in exposure, I want real cash or bank transfer.
Within a day or two it was sold to another media outlet at the original price, no questions. My rate usually averages $1 a word so it's not exactly bad money.
The top of the market is quite different. If you are a specialist (I view myself as a bit of specialist) the rates for a one hour pre-sales call for a vendor can be £1000. It's wild but very variable.
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