How Can AI Work for Freelancer Content Creators?

Artificial intelligence (AI) has become a popular topic of conversation amongst freelancers all over the world, and while some of those conversations are positive, others aren’t so optimistic.

As a freelancer, you may worry that AI could take work from you, which is a very valid concern. After all, there’s very little it can’t do! But what if you used AI to your advantage?

By treating AI as a tool rather than a replacement, freelancers could improve their work in a more efficient way. In this blog, we’ll explore how you can make AI work for your freelance business.
 

What is AI?

In simple terms, artificial intelligence is inspired by human intelligence, and its main focus is the brain – especially when it comes to how we think, learn, and execute tasks. It essentially makes computers, smartphones, and machines act more like us.
 

What do we use AI for?

AI can do a multitude of things, and at a much faster speed than humans. It can problem-solve, make decisions, search the web, and even create art – not to mention switch your lights on or off in any room, or regulate your air conditioning without you lifting a finger.

You’re likely to have interacted with AI in one way or another, whether you’ve spoken to a customer service bot, asked Siri or Alexa a question, or used an AI art generator. It’s part of our lives these days, and most people don’t even realise how much we interact with it.
 

What are the benefits of using AI as a freelancer?

As a freelancer, it can be difficult to see AI as something positive – especially when it’s being used to create art and write content – but one thing AI lacks is the human touch, meaning freelancing isn’t dead (and never will be).

There’s plenty of things AI simply can’t replicate, and collaborating with it can help:
 

Boost your efficiency

As a freelancer, you’ll spend a lot of your time on admin. In fact, lots of freelancers will admit to spending a good chunk of their working hours scheduling meetings, sending out email reminders, and ensuring there’s no clashes in calendars. Using an AI scheduling assistant app can save you hours on admin, so you can focus on what you do best.
 

What types of AI can help me boost my efficiency as a freelancer?

If you want to be efficient as possible, an AI scheduling assistant like Clara can give you a helping hand. Apps like this give you a real-life-human virtual assistant feel, simply ask her to find a time in your diary to schedule a meeting and she will do just that.

If that feels a little weird, you can use other AI Calendar apps like Clockwise!

If the financial admin side of things is slowing you down, take a look at cloud-based bookkeeping software providers such as Pandle, which offers lots of powerful automations at a decent price.
 

Improve your accuracy

If you’re a copywriter, marketer, or someone who needs to write a lot (which is most freelancers), you’ll know mistakes are easily made. Especially when you’ve read over your work for the fifth time and words somehow lose all meaning.

Using AI tools can help you spot errors quickly, so you can focus on writing that killer article or piece of copy.
 

What types of AI can help improve my accuracy as a freelancer?

Tools like Grammarly highlight any errors, and in some cases offer suggestions to reword sentences so they read better for your audience. This is a massive help if you don’t have an extra pair of eyes to make use of every time you’re writing.

The likes of Grammarly aren’t there to replace you, but rather to assist you in writing clear, engaging content.
 

Assist you with ideas

We assume you have lots of ideas – after all, you’re a freelancer, and your business runs off the back of your creativity! But sometimes you need help getting the bones of an article or piece of copy, and AI can assist you in doing just that, while also keeping your content original and yours.
 

What types of AI can help me with ideas as a freelancer?

If you’re looking for inspiration on how to put an article together, AI tools like copy.ai can help get your creative juices flowing. You could use it to get the bare bones of an article or to see your topic from a different perspective. Make the article your own though, of course – the content needs your unique human perspective!
 

Keep you up-to-date

When you run your own business with clients from different industries, you’ll need to stay ahead of the curve with access to all the latest data and insights. It can be hard to do that sometimes, with information flying at you from every angle.
 

What type of AI can help me keep up to date with the latest trends and insights from my industry?

Chat GPT is big news at the moment. This AI chatbot is trained on a large dataset of up-to-date information, so asking it the right questions might be a useful way to find the latest data analysis and trends.
 

Will AI be the end of freelancing?

AI does have the capability to take some work away from freelancers – for example, if businesses want to cut costs and use AI to write a blog post – but there will always be a demand for freelance work somewhere, and this is because:
 

You can’t replicate human creativity

AI is brilliant for writing clear and concise content, but it doesn’t go much further than that. It can’t think outside of the box and it doesn’t have a deep understanding of real human emotions. So, while AI can write a decent piece of copy, it will always need a human touch to make it relatable.
 

Some content can be duplicated, and in some instances, false

There are two issues here that could damage your website authority. Firstly, if lots of us are asking for AI to write specific things, there’s a likelihood somewhere along the line content will be duplicated.

As well as this, if we were to ask AI to pull up quotes and statistics, it may pick out-of-date or incorrect information. Without human judgement, it could be tricky for AI to pull statistics that are factually correct.
 

It lacks original thought

AI is all about gathering data and looking at algorithms. It can’t come up with an idea that isn’t there, as all of its thoughts are ones that have been written before. We humans, on the other hand, can come up with a unique fresh perspective for everything we write.
 

It has knowledge, not experience

A lot of our learning is through experience, successes, or failures. And that’s what makes our content so unique. We can suggest things from our own personal experience and give examples or advice that AI can’t – simply because it hasn’t lived through it. It’s that personal touch readers want, and what clients love for their websites. Tapping into real human emotions will always be vital, whether you’re writing content, producing art, or creating designs.

Freelancers will not be replaced any time soon.
 
Head over to our Freelancer Hub where we have a whole host of guides and resources.

What is a Freelancer?
Do Freelancers Need to Register for CIS?
Can I Be An Influencer?

Ten years ago the term ‘influencer’ wasn’t a phrase many of us were very familiar with. Little did we know it would soon become a common word in most vocabularies, as well as a whole new category of self-employment, income stream, digital content medium, and marketing channel.

For those who still aren’t entirely familiar, an influencer is somebody with a large (and loyal) online following who has the power to influence sales of products and services—hence the name.

You’ll typically find influencers on social media platforms like Instagram, YouTube and TikTok but ‘influencing’ also extends beyond the most popular platforms into more niche parts of the digital world too.

 

Is being an influencer a ‘real’ job?


Yes, absolutely. In fact, according to a recent study by Adobe, UK social media content creators are now earning an average of £137,000 a year.

This is significantly more than other average salaries shared by the UK Government’s National Careers Service:

  • Solicitor – £100,000
  • Software developer – £70,000
  • Accountant – £65,000
  • Train driver – £65,000
  • School teacher – £42,000
  • Firefighter – £32,000
  • Nurse – £32,000

Although some traditionalists might snub the idea of ‘influencing’ being a real career, the potential earnings mean it’s fair to say that it’s an extremely valid and lucrative way of earning a living.

Plus, while it might look easy and glamorous at times, producing the kind of digital content that engages an online audience so effectively that you can turn it into an income stream takes a great deal of time and skill.

 

The growing appetite for influencer marketing


Not only does influencing have the potential to be an extremely profitable income stream for the content creators themselves, but it can also have a powerful impact on the success of the brands and businesses they’re affiliated with.

According to research published by The Social Shepherd, 93% of marketers said they had incorporated influencer marketing as part of their overall strategy. This means almost all of those surveyed had worked with influencers and content creators to:

  • Raise brand awareness (86%)
  • Reach new or targeted audiences (74%)
  • Improve brand advocacy (69%)
  • Increase sales conversions (46%)

The same study found that 61% of consumers say they trust influencers’ recommendations. With a statistic like that, it’s clear to see why so many brands and businesses rely on influencers to help grow their digital presence and boost the bottom line.

 

What do you need to be an influencer?


Technically, anybody can become an influencer. Due to the fact influencers can run their business anywhere in the world with an internet connection, it’s actually a super inclusive and accessible way to make money.

Plus, with free access to social media platforms and advanced smartphone technology, great potential really is at our fingertips these days.

This applies whether somebody is a full-time influencer or if they influence on the side to supplement an employment salary. It also applies whether somebody is an influencer with hundreds, thousands, or even millions of followers, or if they are what is known as a ‘micro-influencer’, somebody with 1,000-10,000 followers.

Unlike many jobs, you don’t need any specific qualifications to be an influencer and the nature of the role is extremely diverse and expansive. Age, experience, and location are some major factors that often determine access to ‘regular jobs’, whereas influencing is open to anybody who wants to give it a go.

That said, there are some areas which might be worthy of consideration becoming an influencer as a way to generate income, including:

  • Have a niche area that you specialise in and build your content around that
  • As well as having a niche, have a target audience that you want to reach and engage
  • Stay on top of your social media skills and the latest trends so that your content stays current
  • Make sure you have time to post regularly and interact with your audience, as well as liaise with the brands you work with
  • Be consistent—sporadic posts aren’t the way forward if you’re going to make a successful business from your online content
  • Analyse how your content performs closely so that you can do more of what works and less of what doesn’t. This requires some knowledge of analytics platforms, most of which are now integrated into the digital platforms themselves.

 

The pros and cons of being an influencer


Below are some of the advantages of the role, as well as some things to consider. It’s important to remember that influencing isn’t just about getting nice things for free and editing Instagram reels in your PJs.

 

The benefits of being an influencer

  • You have complete flexibility and autonomy over your own time
  • As with all self-employment income streams, any post-tax profit you make is all yours to keep
  • For people who are passionate about this line of work, it can be a whole lot of fun
  • You have the chance to positively influence a large audience and make a real difference
  • You get to try products, visit places, attend events, meet new people, and have experiences that you might not otherwise be exposed to
  • Start-up and overhead costs can be super minimal. All you really need to get started is the smartphone that’s probably already in your hand right now.

 

Some things to consider

  • Just like with any form of self-employment, you are responsible for generating your own income
  • Similarly, you are also responsible for reporting and paying your own tax
  • As influencing is so inclusive, this means that the competition is high too
  • There isn’t necessarily as much job security as with salaried employment
  • Even though it’s a lucrative industry right now, nobody knows the future of influencer marketing
  • You may well need to share a part of your life with the world online, and sacrifice some of the privacy and anonymity regular employees or self-employed people have

 
Think a career as an influencer might be for you? There’s only one way to find out! Head over to our hub to find more information and support for freelancers.

Places You Can Work Remotely from for Free
Do Freelancers Get Paid More than Employees?
What Freelance Jobs Can I Do?

There are currently more than 2 million freelancers in the UK, contributing approximately £125 billion to the economy. It goes to show just how significantly freelancing has grown in popularity over the years, appealing to people across sectors, specialisms, and levels of seniority.

There are lots of reasons why someone might choose to go freelance, such as redundancy, a desire to gain professional independence and ‘be your own boss’, or simply to earn extra income to supplement an employment salary

Perhaps you’ve got your own personal reasons for wanting to explore the world of freelancing. Either way, it’s essential to find the right freelance job for you if you’re going to succeed.

For some people, the freelance route they choose to pursue is an obvious choice. If somebody has been working in content marketing for a number of years, for example, then freelance copywriting is a natural extension.

But for others, their freelancing direction is not quite so clear, but that doesn’t mean you don’t have options.
 

What are common examples of freelance jobs?

Freelancing work isn’t restricted to any particular sector, but some are more popular than others, particularly in service-type industries.

  • Independent journalist
  • Copywriter/content writer
  • Social media manager
  • Influencer
  • Videographer/video editor
  • Photographer
  • Web developer
  • Graphic designer
  • Marketing
  • Public relations
  • Data
  • Software
  • Accounting and bookkeeping
  • Editing and proofreading

That’s not to say your freelancing work has to fit into any of those common categories. There are plenty of professions which translate well into a freelance capacity, with some lending themselves more naturally than others. Even things like customer service, sales, and interior design, which are more typically in-house roles, can be carried out on a freelance basis.

You might have your own specialism or skillset that you’re looking to put to good use. In fact, the more niche your offering is, the less competition you’ll have to face. Although that said, you might find there’s less demand for something more specialist.

 

What are the most in-demand freelance jobs in the UK?

Micro Biz Mag conducted research to find out which were the most in-demand freelance jobs in the UK in 2022. The findings were based on data from Google’s Keyword Planner, which shows how much (or little) people are searching for specific terms on Google.

The report revealed that the top 10 search queries with the highest average number of searches per month were for “Freelance…

  • Graphic designer
  • Writing
  • Copywriter
  • Web designer
  • Web developer
  • Photographer
  • Designer
  • Accountant
  • SEO consultant
  • Social media manager

That said, those are the findings of one study and are not completely representative of the full picture. So, if your skills and expertise don’t fall under any of the categories above, don’t lose motivation!

Demand for specific roles can shift depending on other factors too, such as season, budgets, and the wider economy. Do your own research to establish whether or not there’s appetite for what you have to offer.
 

What are the best paid freelance jobs in the UK?

Freelance management platform YunoJuno published its most recent Freelancer Rates Report in August 2022. The research compared average freelancer rates across 16 different categories within marketing, tech and the creative industries.

Overall, the average day rate came out at £368 but this varied significantly across different sectors and industries. The highest average day rates were in market research (£512), strategy (£492) and data (£486), while the lowest were in marketing (£318), social media (£307) and studio (£281).

Other areas that sat somewhere in the middle in terms of average pay included:

  • UX (£468)
  • Project management (£382)
  • Film and motion (£370)
  • Photography (£362)
  • Client services (£340)
  • Design (£436)
  • PR (£326)

While market rates are naturally going to be a factor for consideration, don’t forget to factor in your skills and experience when setting your freelance rate. Think about where you add value for clients, because this is what they’ll be looking for.

In YunoJuno’s report, for example, market research roles were shown to have the highest average pay. However, this sector also demonstrated the biggest gap between highest (£1,479) and lowest (£155) day rates. This proves that pay is highly dependent on a freelancer’s skills, knowledge and experience.
 

Can I freelance while working full-time?

If you’re already in employment and not looking to take the leap into full-time freelancing yet, you might consider setting up a side hustle. This is a secondary source of income outside your current employment that allows you to explore self-employment with the security of a PAYE salary behind you.

Unless your employment contract states that you aren’t allowed to work for anybody else while you’re in that job, freelancing on the side is perfectly fine. In fact, Henley Business School found that 1 in 4 UK adults have a side hustle on top of full-time or part-time employment.

Of course, if you do have an existing job to consider, this might limit what sorts of freelance work you’ll be able to do. Your full-time (or part-time) role will dictate what spare time you have to dedicate to a side hustle, so be sure to consider all factors carefully before you get started.

Another important thing to remember with side hustles are the added obligations around reporting and paying tax on your self-employment earnings. We’d recommend speaking to a qualified accountant who will be able to take any unnecessary stress and complication out of your bookkeeping and accounting.
 
Looking for more freelancing advice? We’ve got a whole hub of handy guides designed to help!

Can I Freelance on the Side?

According to research published by Henley Business School, 1 in 4 UK adults have some sort of ‘side hustle’ – an additional job or secondary income on top of regular employment. It seems like more and more people are looking into freelancing as a way of making extra cash on the side.

Before you hit the freelancing jobs boards though, let’s take a look at some of the pros and cons of freelancing on the side, as well as what to look out for.
 

When you might NOT be able to freelance on the side

Before we delve into more exciting stuff like the benefits of freelancing and how to kickstart your new venture, let’s rule out any scenarios in which it might not be a viable option for you.

The biggest stumbling block you could potentially face is your employment contract. If you’re already employed, there could be something in your contract that legally prevents you from working for somebody else or having a freelance side hustle.

This might be particularly relevant if you’re looking to freelance within the same industry or for a competitor of your employer. For you, this might make total sense as your skills are easily transferable. However, in your employer’s eyes, this could be considered a conflict of interest.

It might be tempting to go ahead and hope you can keep your freelance work under the radar but breaching an employment contract you have already signed is risky business. Be sure to do due diligence before you steam ahead – or your side hustle might become your only source of income!

Before embarking on any side-hustle, it’s also worth pausing to think about whether or not you actually have the time. If you’re already super busy or have other commitments, could freelancing do more harm than good? Make sure you have the time and mental capacity for your new venture before getting started.
 

The benefits of freelancing alongside employment

Assuming your employer is happy for you to start a freelance venture on the side (or that it won’t be a disaster if they found out), and presuming you’re confident you’ve got time, there are some great reasons to get going. For instance, you could:

  • Earn extra income to supplement your salary
  • Explore an existing skill or passion that you’re keen to develop or put to good use
  • Develop and practice new skills at a pace and level that suits you
  • Get to experience the benefits of being your own boss and having professional autonomy over your work without the risks of full-time business ownership
  • Expand your professional network and build relationships in your chosen field
  • Do all the above, whilst protected by the relative security of your PAYE income

 

How to kickstart your freelancing venture

You’ve considered all the pros and cons, and given yourself the green light start your foray into freelancing on the side. There are some important steps you need to take next.
 

1. Decide how you want to structure your business

If the income you earn from self-employment is more than the tax-free trading allowance, you’ll need to register with HMRC as self-employed. For most freelancers this means registering as a sole trader, because it’s more straightforward, but you might instead decide to set up a limited company. There are pros and cons to each.

The main difference is that sole traders are not legally separate to their business, which means your personal finances and assets are connected to your business’s finances and assets. This can have consequences if your business owes debts that it cannot pay, because your personal assets will be at risk.

Limited companies, on the other hand, are separate from the owner, meaning any financial liability that the business has is also independent. However, setting up as a sole trader and paying tax is usually simpler.

Learn more about registering as a sole trader versus setting up a limited company.
 

2. Decide on your pricing structure

Working out how much you want to change for your services can be one of the trickiest parts of freelancing. In practice, it might be something you review and adjust over time. It’s important to strike the balance between earning enough for the value of your expertise whilst not getting carried away to the extent that you over-price yourself.

A general rule when it comes to calculating a day rate, for example, is to have an ideal annual freelance income in mind and divide backwards. Once you’ve got that figure, you can go from there. Use this as a starting point and then be as flexible (or inflexible) as you like with clients when they’re communicating their budgets with you.
 

3. Work out how and/or where you’re going to get work

How are you going to find work? Are you going to set up a website? Are you going to rely heavily on social media? Are you going to attend regular networking events to meet potential clients face-to-face and encourage word-of-mouth recommendations? It’s time to put a plan of action in place.
 

Tips to effectively manage your side hustle

Adding freelancing to your existing commitments is an exciting move but when it’s in addition to other employment, it’s vital that you manage it well. Below are some top tips to help you.

  • Maintain professionalism in your PAYE job and a good relationship with your employer
  • Establish and maintain strong relationships with your freelance clients too
  • Avoid burnout and still leave time to enjoy life (it can’t all be about work!)
  • Ensure all your finances and accounts are up to date and accurate

 
Be open, honest, and transparent with your clients
Let your freelance clients know you also have existing commitments so that you can manage expectations effectively and honestly. If a client isn’t willing to work with you because you have another job, it’s better to get that out in the open from the beginning.
 
Open a separate business bank account
Keep your personal and business finances separate to make things like budget management, spending and tax returns easier and more clear-cut.
 
Take strict measures to avoid burnout
Don’t cram your schedule with meetings and deadlines because you’ll only end up spreading yourself too thinly and, subsequently, underperforming. It’s important to take time to relax, rejuvenate, and enjoy the things you love too.
 
Work with a qualified accountant
With multiple streams of income and the added tax liability of self-employment, your bookkeeping and accounting naturally become a bit more complex. To save yourself time, trouble, and error, do some research about who might be able to help you.
 
It’s time to go out there and explore the opportunities freelancing has to offer!

How Do I Make Sure I Earn a Profit?

Let’s be honest here (our Freelancer News circle is a safe space), without making any profits, most of us would be rethinking our careers, and that’s ok. If you’ve ever thought about giving up and going back to paid employment, we feel you. It’s something that crosses almost every freelancer’s mind at least once.

Not to mention business owners and self-employed individuals are being hit harder than ever with the cost-of-living crisis, and prices becoming more expensive by what feels like the millisecond.

We know this doesn’t make you any less passionate about your freelancing work, but the vast majority of us need to (at least) pay our bills. It’s even better if our passions do more than simply cover our business overheads. But what can you do to make sure you’re profitable?

The very nature of being a self-employed freelancer means that your income is likely to fluctuate no matter what. To help you stay ahead, we share our tips for maximising your freelancing profits. You can do it, we’re rooting for you!
 

What are your key expenses?

Some expenses are absolutely key to your ability to freelance. Depending on what sort of services you provide, this might include anything from rent payments, your phone bill, or printing costs.

When we’re surrounded by them every day, it’s easy to overlook some of the costs that might be putting strain on our financial budget. Reviewing and managing our costs can make a massive difference to how much profit we make.
 

Do you rent out office space?

You may rent out office or workshop space, but do you really need to? With rent prices skyrocketing, especially in city centre locations, it might be time to review how essential that extra expense really is.

Lots of freelancers work from home as a cost-saving measure (and for the sheer convenience!), and might sometimes rent hot desks or meeting spaces to see clients, or even just arrange to meet up in a coffee shop. Remember, you can claim expenses if you work from home too, so all the more reason to set up your own home office!

Technology is also ever-evolving, with online video calls and screen sharing now accepted as the norm. If your premises are more habit than helpful, it might be time to get shut of the space and keep more of your income.
 

What are your suppliers like?

It’s not unusual to find a supplier and stick with them until the end of time (we’re creatures of habit so a lot of us tend to stick to what we know). But it’s always best practice to check what/who else is out there, so you’re always aware of the best solutions available.

This helps you stay efficient, and can even help you keep on top of your competitors. When thinking about your supplier, keep notes such as:

  • What sort of payment terms do your suppliers offer? Are they beneficial for your cash flow? For instance, if you order printing work for a client, does your supplier give you enough time to recharge the customer before paying the printing bill, or does the cost come out of your pocket first?
  •  

  • You’re likely to have looked around first before choosing your supplier, but have you checked since? Things may have changed since you first had a look, so find time in your diary to review different suppliers. You never know who you might come across!
  •  

  • If you feel like their fees are a little high for what they offer, consider trying to negotiate with them while also checking out other suppliers in your area. If you go to networking events or have contacts with other freelancers or small businesses, ask if there’s anyone they’d personally recommend. You’ll find people in your industry will have heaps of knowledge to help and guide you through this sort of stuff.

 
Never feel like you’re stuck with one supplier, there are plenty of friendly professionals out there offering great prices!

And lastly, remember it’s business and nothing personal, so don’t feel tied down to a particular person for fear of hurting their feelings, especially if it could be damaging your profitability.

 

How efficient is your business?

As a freelancer you need to ensure you’re making your work life as streamlined as possible. After all, you’re running the whole show!

  • Try to track how you spend your time, and where you use up resources. For instance, are there any processes you can change to make them easier or avoid duplicating work? If you’re active on social media a lot, could you plan and schedule more of your posts? Having them scheduled a couple of weeks in advance can make a huge difference to your workload, rather than coming up with content and posting it ad hoc.
  •  

  • Can you schedule follow-up emails for your clients? You can set up personalised emails a couple of days (or hours if you prefer) after client meetings to check in and thank them for their time, and add any bits of info that you normally would. Personalising these emails is usually pretty easy, and you can set up trigger points to stop anything being sent if they email you first (so it doesn’t look like you’ve automated anything!).
  •  

  • If you spend a lot of time manually entering bank transactions into your bookkeeping or invoicing clients, it might be worth researching what software options are available to do more of the heavy lifting for you.
  •  

  • If you create or sell products, is there a way to use up leftover or surplus materials? Do you spend time answering the same questions with each new client? Maybe you could prepare an onboarding guide, or even just write up an email template to deal with them more efficiently.

These are just a few suggestions, but it completely depends on what it is you do. It’s well worth getting a pen and paper to record your day, and see if there’s anything you can do to relieve those pain points!

 

Are you under-pricing your goods or services?

When starting a business, most of us are worried about putting clients off. So, instead of charging what we’re worth, we massively undersell ourselves and usually end up out-of-pocket rather than making a profit!

Whether you sell your services or products (or both) you need to think of the following:

  • The qualifications you needed to get to where you are today
  •  

  • How much time it takes you to provide these goods or services, and what your time is worth
  •  

  • The time you’ve taken to practice your craft to reach this level. For instance, it might take you ten minutes to do something, but that’s because you have ten years’ of experience doing it!
  •  

  • How much it costs you to provide your goods or services. For example, if you’re a freelance wedding photographer, how much do you spend acquiring bookings, meeting the client, visiting the venue for a walk through, travelling to the job… and so on!
  •  
    Always do your research on what other people in the industry are charging – especially your nearest competitors. This will help you decide whether it’s time to put your prices up. We know this can feel difficult, but with time you’ll become more comfortable deciding how much you should charge your clients. Always remember your own worth!
     

    Good bookkeeping

    We’re not being dramatic when we say bookkeeping is absolutely essential for every business – freelancers included!

    It’s super important for many reasons, from helping you stay organised, to identifying any issues putting strain on your finances – such as repeated late payments from clients.
     

    Keeping on top of everything and get paid quickly

    Keep on top of the jobs you’ve completed, the hours you’ve worked and the invoices which have or haven’t been paid. Having everything so visible will help you keep track of what you need to pay, and who still needs to pay you.

    You can even use this information to send payment reminders to all your clients, helping you to get paid faster, and review the ones who regularly miss their payment date. This way you can decide whether you want to continue working with these clients, or whether it disrupts your cashflow too much and therefore isn’t worth the stress.
     

    Spot trends

    If you have a good bookkeeping system, you can check your income, outgoings, clients who pay the fastest, and services or products that are the most popular. This way you can keep on top of who your best clients are, what services or products they’re loving, and what areas may need a revamp or some marketing.
     

    Have your tax and expenses under control

    Did you know you could claim tax relief on some of your expenses as a freelancer? For instance, this might include your travel costs to see a client, or a mobile phone you use for work. The list goes on, but by being aware of what you’re entitled to, and logging it all in your bookkeeping, you won’t be left second guessing what expenses to claim back in your tax return.

    Speaking of which, good bookkeeping will also help you keep on top of your earnings, so you can begin to put money aside ready for your Self Assessment tax bill!

    Keeping on top of the books will help you spot opportunities or issues in your business. The best part is that some providers offer free bookkeeping software, so that won’t be another thing you’ll have to pay for.
     

    Do you need to look at how you’re promoting your business?

    In an ideal world, we’d create a website with our services displayed, and customers would come flooding in, leaving us busy until retirement. Unfortunately, though, that just isn’t the case.

    While marketing may be a little scary, it’s vital for getting your name out there. Don’t let the name put you off! Marketing can be anything from handing business cards out to your mates in the pub, to advertising your services in a LinkedIn post.

    Before you go to the time and cost of setting up a website, do you actually need one? In some cases, you might just need to set up a sharing link to your portfolio. If you do need to use a website to promote your services, but you’re not too sure where to start, you could take an online course or even hire help from another freelancer.

    Without help or training, we don’t want to know where we’d rank in Google. And let’s be honest, we could all hide our deepest and darkest secrets on page 3, and no one would know.

    What else can I do to promote my freelance services?

    • Have happy customers? We love to hear it! It’s a great feeling, and you should be super proud. If a customer is reaching out to you because they loved your service, ask them to leave you a review! It’s free promotion you should never miss out on if the opportunity arises.
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    • Look at your marketing strategy. As a freelancer, you need to find what works for you. You could advertise yourself on social media, meet people at networking events, or even reach out to your existing or previous clients. Word of mouth recommendations are a powerful form of marketing! Test what works for you and don’t be afraid to try new things.
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    • Follow up on any dead ends. It happens to us all. You give someone a quote, they say they’ll get back to you, and then it’s dead silence. Have a follow up email template ready for any quotes, letting your clients know you’re there if they need you. You’re not being rude, sometimes people just need a little chase.
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    • Remember to be patient: Great things take time, so patience will be required when seeing out a new marketing strategy or building up your customer reviews. It’ll all be worth it in the end.

     

    The main thing to remember is not to be so hard on yourself. It can be extremely difficult being a freelancer, but once you learn how to take action and when, the more your hard work will pay off.

    Get more advice and news over on our Freelancer Hub!

    Do I Need to Make Payments on Account?

    You can spend most of your working life blissfully unaware of any HMRC jargon, letting PAYE do its thing. But then decide it’s time to venture into the unknown and become your own boss, and before you know it, tax jargon is coming at you from all angles.

    At some point, as inevitably as tax itself, you’ll encounter Self Assessment, and before you know it, payments on account. Intended to make paying your tax bill easier, payments on account can also be an unwanted surprise, which is why we thought we’d share our guide to what they are.
     

    So, what are payments on account?

    Payments on account are essentially there to spread the cost of paying tax through Self Assessment. They work on the assumption that you’ll make the same amount or similar in the next tax year as you did in this one.

    This can be both a blessing and a curse, but you’ll need to be aware of them if you either:

    • Owe more than £1,000 in tax from self-employment to HMRC
    • If less than 80% of your tax bill has already been collected at source (so this will be referring to the likes of PAYE)

    Think of payments on account as a pre-payment towards next year’s tax bill. But because HMRC aren’t psychic and don’t know what next year’s tax bill will be, they just assume it will be the same as this year’s.
     

    Is there any way around payments on account?

    There’s no escaping from this one. The minute you submit your Self Assessment, HMRC will calculate your tax bill. If the bill comes to more than £1,000, or if less than 80% of the tax you paid this year was deducted at source, you’ll automatically become liable for payments on account.
     

    What will my first year with payments on account look like?

    It’s well worth preparing yourself for the possibility of making payments on account, so you aren’t hit with unexpected bills.

    They can feel like a burden because you’re paying some of next year’s taxes in advance, even though you haven’t earned the money yet.

    It’s why it’s so important to keep track of your bookkeeping and potential tax bill throughout the year!

    In this example of making payments on account, your tax bill is £1,000 in your first year, and £1,500 in tax in your second year

      • Your first tax year ended 5th April 2024 (the 2023/24 tax year), and you must pay your £1,000 tax bill before 31st January 2025.

      • Because your 2023/24 tax bill hit the £1,000 threshold, you must also make payments on account towards the 2024/25 tax year.

      • The 2024/25 tax year runs 6th April 2024 – 5th April 2025, but the deadline for submitting your 2023/24 tax return is 31st January 2025. This means you won’t actually know what you owe for 2024/25 just yet, so HMRC assume the bill will be the same as it was for 2023/24.

      • Payments on account are made in two equal instalments. The first half is due at the same time as your 2023/24 tax bill (before 31st January 2025).

      • That means you’ll need to pay £1,500 by 31st January 2025. This amount is made up of your £1,000 tax bill, and £500 which is your first payment on account for next year’s tax. It can really hammer your cash flow if you’re not expecting it!

      • Then before 31st July 2025 you would need to pay the remaining £500, which will be your second payment on account towards next year’s bill.

      • Once you get to the end of your second year, 5th April 2025, HMRC will know you owe £1,500 in tax, but due to splitting the cost with your payments on account, they’ll be able to see that £1,000 has already been paid, leaving £500 left to pay for that tax year.

      • The bill for the tax year which ends 5th April 2025 is due before 31st January 2026. You’ll need to pay the £500 balance, plus the first payment on account for the following year. HMRC will assume that your bill for the following year is £1,500, so you’ll need to pay half of that amount on top of the £500.

    • There would then be the remaining £750 to pay by July 2026.

     

    But what if my profits change from one year to the next?

    HMRC calculate your payments on account by assuming you’ll owe an identical amount to the previous tax year. But if you make less profit, you’ll owe less tax, so big changes to your profits can really disrupt things.

    HMRC predictions can end up skewing our tax bills, but they do eventually balance themselves out. If your payments on account mean that you overpay on tax one year, you’ll always receive it back when the tax year is over.

    Obviously not all of us can wait until the end of the tax year, so there is an option to request for HMRC to reduce your payments on account.

    Before you do that though, we strongly recommend some careful analysis of your income, outgoings, and profits first. If you estimate you’ll make much less, but then make a lot more, HMRC will demand the difference straight away and might even charge interest on top.

    If you want to reduce payments on account you can submit anSA303 form to HMRC.
     

    What should I do if I’m struggling to make payments on account?

    We’d recommend either chatting with Citizens Advice, to HMRC themselves, or better yet, speaking to your accountant who can look at your options.

    They’ll be able to help you estimate how much your business can afford to pay, so when you go to HMRC, you’ll be ready with a realistic payment plan .

    Looking for more advice on all things finance and accounting? Head over to our Freelancer Finance section where we’ve got a whole hub of handy guides ready to help you out.