Self-Employed vs Employed Estate Planner: Complete Comparison

Three main career structures:

1. Employed (salary)

• •Fixed salary plus possible commission
• •Company provides clients
• •Standard employment benefits
• •Limited flexibility

2. Self-employed (with company)

• •Commission/fee-split arrangement
• •Company provides some support
• •More flexibility
• •Some business responsibility

3. Fully independent

• •Own all client fees
• •Full business responsibility
• •Maximum flexibility
• •Highest risk and reward

Quick comparison:

| Factor | Employed | Self-Emp | Independent |

|--------|----------|----------|-------------|

| Income ceiling | Lower | Medium | Highest |

| Risk | Lowest | Medium | Highest |

| Flexibility | Lowest | Medium | Highest |

| Startup cost | None | Low | Higher |

| Client supply | Provided | Partial | Self-generated |

What you can earn in each model:

Employed income:

• •Entry: £25,000-£32,000
• •Experienced: £32,000-£45,000
• •Senior: £45,000-£55,000
• •With commission: Add £5,000-£15,000

Self-employed with company:

• •Commission rate: 40-60% of fees
• •100 cases × £450 × 50% = £22,500
• •150 cases × £500 × 50% = £37,500
• •200 cases × £500 × 55% = £55,000

Independent:

• •100 cases × £450 = £45,000 gross
• •Less costs ~£8,000 = £37,000 net
• •150 cases × £500 = £75,000 gross
• •Less costs ~£12,000 = £63,000 net
• •200 cases × £550 = £110,000 gross
• •Less costs ~£18,000 = £92,000 net

Highest earning potential: Independent

Most predictable income: Employed

Best balance for many: Self-employed with company

See Estate Planner Income Calculator for personalised calculations.

How each model affects your life:

Employed:

Hours: Fixed schedule, typically 9-5 or diary-managed

Location: Often set by employer

Holidays: Standard allocation (20-28 days)

Clients: Assigned to you

Pace: Set by company targets

Best for: Those wanting structure and predictability

Self-employed with company:

Hours: Flexible within reason

Location: Often flexible (home-based common)

Holidays: Self-managed but unlimited

Clients: Mix of provided and self-generated

Pace: More control, some targets

Best for: Those wanting balance of support and freedom

Independent:

Hours: Completely your choice

Location: Completely your choice

Holidays: As many as you want

Clients: All self-generated

Pace: Entirely self-determined

Best for: Those wanting maximum control

Lifestyle scenarios:

Want school hours?

• •Employed: Difficult
• •Self-employed: Possible
• •Independent: Easy

Want to travel/work remotely?

• •Employed: Very limited
• •Self-employed: Some flexibility
• •Independent: Yes (video consultations)

Want to scale/build business?

• •Employed: No
• •Self-employed: Limited
• •Independent: Yes

Understanding the risk profiles:

Employed risk factors:

• •Job loss risk: Present but protected
• •Income variability: Low
• •Client supply: Company's problem
• •Business costs: None
• •Overall risk: Low

Self-employed risk factors:

• •Contract termination: Possible
• •Income variability: Medium
• •Client supply: Partially shared
• •Business costs: Some
• •Overall risk: Medium

Independent risk factors:

• •No fallback: You are the business
• •Income variability: High initially
• •Client supply: All on you
• •Business costs: All on you
• •Overall risk: Highest

Mitigating independent risk:

• •Financial buffer before starting
• •Build reputation while employed
• •Develop referral network gradually
• •Diversify client sources
• •Keep skills current
• •Insurance and legal protection

Reality check:

Many successful practitioners started employed, moved to self-employed, then independent over 3-5 years. This reduces risk while building towards independence.

How careers develop in each model:

Employed progression:

1. Junior practitioner

2. Senior practitioner

3. Team leader

4. Manager

5. Director (if available)

Ceiling: Often £55,000-£70,000 without equity

Self-employed progression:

1. Building caseload

2. Established practitioner

3. Top performer

4. Potential independence

Ceiling: Determined by commission structure

Independent progression:

1. Solo practitioner

2. Established practice

3. Premium practitioner

4. Business owner (multiple practitioners)

5. Scaled business

Ceiling: No ceiling—determined by ambition and ability

Best for long-term wealth building:

Independent route allows:

• •Business equity creation
• •Practice sale potential
• •Unlimited income ceiling
• •Asset building

Trade-off:

Employed/self-employed = more income security

Independent = more wealth potential

See Highest Paying Estate Planning Roles for top earner analysis.

Decision framework:

Choose employed if:

• •You want income security
• •You prefer structure
• •Marketing/sales uncomfortable
• •Starting with no clients
• •Risk-averse personality
• •Value employment benefits

Choose self-employed (company) if:

• •Want flexibility with support
• •Building towards independence
• •Have some sales ability
• •Comfortable with some uncertainty
• •Value work-life balance

Choose independent if:

• •Want maximum earnings potential
• •Comfortable with business responsibility
• •Have marketing/networking ability
• •Have financial buffer
• •Highly self-motivated
• •Want to build equity

Hybrid approach (recommended):

Year 1-2: Employed or self-employed with company

• •Learn the profession
• •Build reputation
• •Develop skills
• •Minimal risk

Year 2-4: More independence

• •Generate own clients alongside
• •Build referral network
• •Test independence part-time

Year 4+: Choose your model

• •Stay employed (if happy)
• •Go independent (if ready)
• •Build business (if ambitious)

Resources:

• •Career Change to Estate Planning
• •Is Estate Planning Stressful
• •How to Get Estate Planning Clients