5 Things Every Freelancer MUST Know

By now, you have probably come across the phrase ‘freelancer’ if you follow us on LinkedIn, you certainly have by now. Freelancing sometimes goes by other terms, such as ‘self-employed’ or ‘working for yourself’ but ultimately, they all mean the same thing. A freelancer doesn’t work for an organisation, they aren’t an employee, but instead, they are a contractor.

In figures published by the Office of National Statistics, it is suggested that self-employed people tend to be older on average than employees. With only 20% of self-employed people being aged 16-34 years. Why? We wish we knew! The opportunities are out there! But what we do know is if you're thinking of becoming a freelancer, there are certain things you should know before embarking on this journey…

One

Being paid as a freelancer is very different from being paid as an employee. You’re responsible for sending invoices to your clients and paying your own tax (whereas when you work for a company, that is the responsibility of your employer).

With this in mind, we would recommend putting 20% of everything you earn in a separate account. So, when April rolls around the corner and your self-assessment is due, you will already have a portion of your income set aside ready to pay your tax bill.

Two

On a similar note, when you are self-employed it's common to have numerous different clients. However, if you do only have one client, there is something you must be aware of...

If you only work with one company and you’re trying to acquire more clients, you have nothing to worry about. But if you only work for one company (and you have no intentions to gain more clients). You must let the company know. 

Employers are responsible for paying national insurance contributions and income taxes on behalf of their employees, so if they misclassify an employee, they can be violating many laws. It is critical to let your client know if this is the case, to avoid any criminal or civil proceedings.

Three

Being self-employed, you must be organised. It's a good idea to keep track of everything you earn, every amount you put aside for tax, and all of your business expenses.
This way, you'll have a record of everything - ready for filling out your self-assessment form! 

Additionally, a top tip for if you’re using an accountant is to keep a record of what days you worked and for which client, just to give your accountant a better record of the work you have done. 

Four

A common mistake that newly self-employed people do is becoming stagnant. 

Just because you have a good amount of clients now and you're working near (or at!) capacity, doesn't mean you shouldn't be networking!

Never. Stop. Networking.

Frequently post to LinkedIn, attend networking events, and keep introducing yourself to new people! They might have an opportunity for you further down the line. Or when you need work, you'll be able to pitch to them and they will already know who you are and be familiar with your work.

Additionally, we'd suggest getting to know people in a similar field as you. Sometimes you might find that a business will approach you, require your services, but you don't have the availability. 

In this situation, we would suggest recommending a good, reliable freelancer that you know of! And you never know… that freelancers might refer clients to you in the future…

Five

Last but in no means least, it is essential to keep your digital portfolio updated when you're freelancing! This is a working document, and it showcases all the great work you have done for your clients. 

Regardless of whether you have availability and you are onboarding clients or if you are currently at capacity, keep your portfolio updated. Potential clients will be able to see your work and skills (so if you pitch to them in the future, they will already be familiar with your accomplishments!)

Are you unsure of where to start when building a digital portfolio? Check out our list of what to include.

What now?

If you're a freelancer and you have some tips you think others should know about, let us know! We may feature them in a future blog post and credit you.

Or have you recently graduated and you are considering giving freelancing a go? Our advice - do it! 

If you're looking to gain experience to build up your client base or you have some availability and you are looking to take on a new project, send us an email to find out what opportunities we have available!

And if you have never considered being self-employed, it's certainly worth giving it some thought. Even if you don't do it permanently, it could give you the experience to secure a full-time role with a company. And if not, many soft skills can be developed through working for yourself, such as improving your time management and organisational skills. 

It's certainly worth a try and if you're wanting to chat about the possibility, then we are here to help.