7 Top Tips for Freelancers

Stats of Freelancers in UK

• According to research from IPSE, 1.8 million people now work as a freelancer in the UK, that’s a rise of 36% since 2008.
• People are attracted to freelancing for lots of reasons: it gives them greater flexibility over the work they do; they can have a better work-life balance; and it can be a good way to get out of a corporate environment.

1. Choose the right business type
When you start working as a freelancer you are setting up a business. However, from a legal and tax point of view, there are different types of business you can set up and it is important that you choose the right one.

2. Tell the taxman
When you set up as a freelancer, you are obliged to tell HMRC straight away. If you run a limited company, you have to pay yourself through PAYE and so will need to set up an account with HMRC to pay your tax and your National Insurance.

3. Get online accounting
You don’t just need records of your financial transactions for the HMRC, you also need them for yourself. It is vital that you have a complete picture of your business’s finances so that you know where you stand.

4. Get insurance
It doesn’t matter what business you run, you need to have insurance. Whilst you might be thinking about the need to insure your stock or your equipment, you must also think of liability insurance.

5. Open a business bank account
It legally obliged to have a separate business account from your personal one in case of limited company. However, it becomes messy to sort out your business & personal finances if you don't – especially, if you are asked to provide banking details for tax purposes.

6. Always have business cards handy
Business cards are essential for every freelancer. Having a business card available means you can give someone your details there and then, without having to scribble your name and contact number down on the back of an envelope.

7. Ensure you have website
One of the biggest advantages for many freelancers is that your business isn’t limited by geographical boundaries. Much of the work freelancers do can be done online and this means that you have the potential to work with clients across the globe.