Self-Employment Advice for Freelancers
You’ve just become self-employed, or you’re thinking about becoming a freelancer. It’s an exciting time and you’re bound to have plenty of questions.
We’ve put together our top self-employed advice, and a few of the most common questions and important answers you need to know.
Should I become a freelancer?
There are lots of reasons why you might start freelancing, so it’s a decision which really depends on you and your circumstances.
| Typical advantages of self-employment | Potential disadvantages of self-employment |
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If it’s something you’ve been thinking about, but you’re still not sure, there are a few key points to remember!
- You don’t have to be a freelancer forever if it’s not for you
- You might start your freelance journey as a side-hustle, testing the waters whilst still working for an employer
You might specialise in one very particular area, or provide a broader range of services – it’s entirely up to you. Focusing your efforts can make it easier to target potential customers but there aren’t any rules to say you can’t experiment.
Taking on the occasional spot of freelance work when it turns up might not need detailed planning, but a business plan can help if this is something you want to try long-term. You can use it to think about things like funding, marketing, setting out goals, and it can even help you spot future obstacles.
Working out what to charge clients trips up lots of freelancers, especially when you’re just starting out! The most obvious place to start is by making sure you can at least cover your own costs, but don’t underestimate your own value.
How do I register as self-employed?
If you’ve decided that freelance self-employment is for you, then the next step is to register with HMRC. Even if you’re only doing work on the side, you still need to let HMRC know if you’re earning more than the £1,000 Trading Allowance in a tax year.
The good news is that if your earnings from self-employment are below that threshold, you won’t need to tell anyone, or pay tax on it.
When do I need to become registered?
The official deadline to sign up is 5th October in your second tax year of trading. A tax year starts 6th April and runs until 5th April, so if you start up in March 2025 then your first year is 2024/25, which ends in April 2025. You’ll need to make sure you’re registered by 5th October 2025.
Ideally, you want to register as self-employed within three months of starting to do business. This will avoid any delays, and everything will be set up ready for when you need to start sending tax returns!
Do I need to have an accountant to register as a freelancer?
You don’t need to have an accountant to sign up with HMRC. You don’t even have to have one to submit tax returns. It’s entirely up to you! There are lots of options, so you might hire someone to help you get started, or just to submit your tax return, or for year-round help.