The best thing about being a freelancer is that you’re responsible for everything, and the worst thing about being a freelancer is that you’re responsible for everything.
Wouldn’t it be nice to have a little help every once in a while? That’s where freelance job sites come in. But how do they work exactly?
And, perhaps most importantly, do they take a cut of your earnings? Let’s take a closer look.
What is a freelance job site?
Quite simply, it’s a platform that helps you find freelance projects and jobs, and connect with clients.
There are a couple of different types, and which you go with is really a matter of personal preference. Like all decisions, it’s usually best to consider your specific needs against what’s available.
For example, there are freelance bidding platforms where clients list jobs and freelancers submit their quotes for the work. There are also sites like Lemon.io which completely flip the script by listing freelancers and encouraging potential clients to enlist their services.
How can freelance job sites help me find work?
There are some freelance job sites that target specific industries, while others take a more general approach and cast the net wide.
Either way, the good ones streamline the usually painstaking process of sourcing and securing work by getting freelancers in front of people looking to outsource work. The client will normally need to provide some sort of brief for the work they have in mind. Lots of freelancing platforms will have mandatory fields for things like whether this is an ad-hoc project or an ongoing contract, for example.
Once you find the right one for your needs, a freelance job site can be an invaluable resource, enabling you to expand your network and build your reputation in whatever industry you’re a part of. Especially if you’re just starting out!
Freelance job site fees
Let’s examine a few real-world examples of common freelancing platforms and typical fees they charge.
Upwork
- Freelancer Service Fee ranges from 0% to 15% per contract
- Set based on factors that help support a balanced and competitive environment across different types of work
- A fixed fee, meaning it won’t change once your contract begins
Fiverr
- No subscription required
- Charges a 20% service fee on everything you earn through their online marketplace
- Automatically assessed at the time a client’s payment is paid out to you
Guru
- Signing up for an account is free for both freelancers and clients
- Charges a service fee based on a freelancer’s earnings from each project completed, typically between 5% to 9%
- Freelancers can choose from different membership plans, offering various benefits like reduced fees per project, or increased visibility on the platform
Are freelance job site fees tax deductible?
If you’re subscribed to any of these sites and pay a membership fee or have fees deducted from your earnings, you can usually deduct this as an allowable expense.
An allowable expense is something which relates wholly and exclusively to your business, and a platform fee for finding work would absolutely fall into this category.
Am I still self-employed if I use freelance job sites?
Yes! Using a platform to find work doesn’t change your employment status unless you start working as someone’s employee. This means you need to register for Self Assessment if you haven’t already, and submit tax returns so you pay the right amount of Income Tax and National Insurance.
If you’re not totally clear on how to go about this (or just feel unsure about it), a qualified accountant can break everything down and walk you through the process.
What if a client doesn’t pay?
The response to this can vary from platform to platform, but most freelance job sites have at least some kind of protocol in place for when a client stops paying (or even replying).
With Upwork, for example, logged hours that meet the requirements for Hourly Payment Protection will still be invoiced and paid to you by the platform through the usual weekly cycle – even if your client doesn’t respond or fails to pay.
Fixed-price projects are a little different, with you needing to complete your current ‘milestone’ before ending the contract. If you don’t, you risk losing access to any project funds that might be set aside.
Head over to our information hub for more guides, news and advice on navigating life as a professional freelancer, from finance to tech and more.
