Many people like the attraction of being their own boss and being able to run their own company. But with this comes a lot of responsibility and pressure and for some this is enough to put them off. When you are employed you will often be on a lower hourly wage than if you were self employed but will also not have to worry about doing tax returns, not getting sick or holiday pay and having to find your own work. As an employee this stress and hassle is taken away from you and you will usually have a lot more benefits. Employed people are often guaranteed a basic salary every week or month whereas when you are self employed you could find yourself with little or no work one month and still have all your bills to pay.
If you claim tax credits or any help from your local council, then you will be expected to constantly report certain changes relating to your self employed business, your working hours and income. This alone can be a big challenge and often people can easily make a mistake in this, costing them hundreds or thousands of pounds.
There are advantages and disadvantages to being employed and being self employed but it needs to be a case of assessing your current situation and finding out which suits you best.