Being freelance, or self-employed, means that rather than signing a contract to work for one company, you work for yourself and manage your own tax affairs. This gives you the freedom to work for whoever you like, as much or as little as you want. You’re flexible and the ruler of your own destiny.
As you launch your career after graduating – or even while you’re still studying – freelancing offers a great way to try out different industries or companies and get that oh-so-important experience employers demand.
Freelancing can sometimes be a bit lonely, plus you don’t get sick pay, a pension or holiday pay. Here we talk about the pros and cons.
I think I’m freelance already! What should I do?
If you’re working for someone and they’re paying you and you’re not being taxed ‘at source’ (look at your paycheque – if you’re getting cash in hand then you are almost certainly not being taxed) then you’re what the Government calls a ‘sole trader’ – the current definition for people who are freelance or self-employed.
This means you should fill in a self-assessment form. Say you started freelancing between 6 April 2017 and 5 April 2018 – you have until 5 October 2018 to register. Any later than this, and you risk a fine.
There’s more information about registering as a sole trader on GOV.UK.
If you’re only earning a tiny amount from your freelancing – say under £2000, you might not need to complete a self-assessment form. Take a look at our tax article to find out more.
You’ve probably heard people use these terms interchangeably, but they’re not actually legal definitions and the law changes all the time anyway. Confused? Instead of worrying about terms, here are two key scenarios you should be aware of:
Choosing the right time to go freelance is important because successful freelancing is about having the confidence to pitch yourself and your skills. If you’re ready to go freelance, you will have some, if not all, of the following sorted: