If you’re keeping an eye on the budget, we have a separate blog which explains some of the best places to work from for free.

In this article we explore the benefits of co-working spaces for those who prefer not to work from home, or just want to get out of the house from time to time.

We also share advice on how to find co-working spaces in Manchester and spotlight seven co-workspaces in the city to steer you in the right direction.

The benefits of co-working spaces

Whether you choose to work in a co-working space full-time, part-time or just on an ad hoc basis, there are so many benefits this brings to the table, including:

• A better work-life balance
• Improved focus, concentration and productivity
• Networking opportunities and the chance to meet new clients and like-minded professionals
• A sense of belonging to a community
• Giving your business a stronger reputation and impressing clients
• Reducing your own at-home utility expenditure
• The chance to work in a diverse range of different spaces and places — even around the world

Where can I find a co-working space in Manchester?

There are now thought to be more than 6,000 co-working spaces across the UK – a number that continues to rise all the time. So, as you can imagine, when it comes to finding a co-workspace in Manchester city centre and beyond, you’re spoilt for choice.

Google search, social media platforms and requesting word-of-mouth recommendations from peers are some of the best ways to find the co-working space(s) that will tick your boxes. You can tap into honest opinions from real-life co-workers and use these to help you navigate your options.

Some of the best co-workspaces in Manchester

To get you started, here are seven co-working spaces in Manchester for you to check out next time you’re looking to host a meeting with a client or simply take a break from working at your kitchen table.

Use.Space

Where? UseSpace, Paddock Street M12 6PN
When? Monday-Friday, 7am-7pm
Membership cost? From £89pm
Day passes available? Yes (£25 full day, £15 half day)
Dog-friendly? Yes

This independent co-working space in Ardwick is nestled in a historic building in one of the most up-and-coming parts of the city. It’s only a 10-minute walk away from Piccadilly train station but being slightly outside the very centre of Manchester means you can benefit from spacious on-site parking.

With its botanical decor, bustling co-working cafe, indoor greenhouse and flexible combination of hot desks, private offices and meeting rooms, Use.Space is a popular spot for solo workers and small businesses alike.

WeWork (Manchester)

Where? Multiple locations
When? Monday-Friday, 9am-6pm
Membership cost? From £149 per month
Day passes available? Yes
Dog-friendly? Yes

WeWork is one of the most globally recognised co-working brands around the world, so if you travel a lot, this one is a good option for somewhere that will feel familiar wherever you are.

WeWork offers private offices, dedicated desks in a shared office, open-plan hot desks and meeting room hire, so whether you’re a solo freelancer or working with a team, there’s sure to be something to suit.

Beehive Lofts

Where? Beehive Mill, Jersey Street, Ancoats M4 6JG
When? Open 24 hours
Membership cost? From £185 per month
Day passes available? No
Dog-friendly? Yes

Dubbing itself ‘Manchester’s most luxurious co-working space’, Beehive Lofts features quirky interior design, eclectic furniture and a diverse array of different types of work settings.

It offers ‘the productivity of an office with the comforts of home’, complete with hammocks, pool tables and lounges alongside the key necessities like meeting rooms, desk space, breakout areas, etc.

People buzz about Beehive lofts for its affordable prices and 24/7 access – as a freelancer, you often work around the clock so having somewhere with 100% flexibility is a huge bonus.

Flagship Spaces (Manchester)

Where? 27 Turner Street M4 1DG
When? Monday-Friday, 8:30 am–5 pm
Membership cost? Enquire for details
Day passes available? Yes from £15 per day
Dog-friendly? Only in larger contained offices, not small offices or communal areas.

The Flagship group offers ‘a thoughtful collection of flexible workspaces and co-working offices, designed with the agile modern business in mind’, with other locations in Bristol and LA.

The Manchester base is nestled in the Northern Quarter, which is one of the city’s trendiest hot spots where you’ll be surrounded by some of the north west’s most dynamic creative brands and businesses.

Spaces include private offices, dedicated desks, open shared workspaces, breakout areas, an eight-seater meeting room and quiet spaces designed for focus and privacy. Plus, state-of-the-art Herman Miller furniture made with ergonomics in mind.

Colony

Where? Multiple locations
When? Monday-Friday, 8:45 am–5:30 pm
Membership cost? From £200 per month
Day passes available? Yes
Dog-friendly? Yes

Colony has a network of co-working spaces across the city so wherever you need to be in Manchester, there’ll be one pretty close by.

What’s on offer? Furnished private workspaces that you can customise to suit you, whether you’re working solo or as part of a large team, desking in a shared workspace, and 20 meeting rooms around the city.

Flexible contracts and access to any Colony site are perfect for freelancers who need something that can adapt to their schedule.

Huckletree (Manchester)

Where? The Express Building, 9 Great Ancoats Street M4 5AD
When? Monday-Friday, 8.30am-6pm
Membership cost? From £175 per month
Day passes available? Yes
Dog-friendly? For members only

As well as the key amenities like meeting rooms, desks and private offices, other things you can benefit from at Huckletree are:

• A custom-built podcast recording booth
• Privacy phone booths and focus booths
• Flexible membership options
• Modern design and tech facilities
• Wellness event and open mic nights
• Bike parking
• On-site shower facilities

One of the things people love most about Huckletree co-working spaces are the purpose-built event spaces. So, if you’re planning something for your event calendar like a networking event, presentation or client workshop, this is an option worth exploring.

Clockwise (Manchester)

Where? Linley House, Dickinson Street M1 4LF
When? Open 24 hours
Membership cost? From £115 per month
Day passes available? Yes, £20 per day
Dog-friendly? For private offices only

Clockwise co-working spaces all pride themselves on delivering four key things in equal measure: functionality, flexibility, service and connectivity.

Based in a former electricity station that once powered the whole of Manchester, this beautiful building is steeped in history but the interior is fresh and modern with a welcoming community vibe. Services at Clockwise include:

• Meeting rooms
• Desking
• Private offices
• A podcast recording studio
• Breakout areas
• Club Lounges
• On-site cafe
• Event spaces
• Collaborative technology
• Bike storage
• 24/7 access

What to look for in a co-working space

Co-working spaces come at a cost, so it’s important to get your money’s worth by choosing the ones that meet as many of your needs as possible.

Of course, this will be personal to you but there are some key general factors that might affect your selection when scoping out your options, such as:

• A fast, reliable internet connection
• Good public transport links
• On-site car parking
• Perks like free tea, coffee and snacks (not 100% necessary but always nice)

Some other important things to consider when selecting a co-working space are:

Flexible opening hours

The life of freelancer very rarely fits neatly within the confines of a traditional 9-5. This freedom is one of the best things about freelancing but it also means you need a co-working space that offers flexible access and working hours that suit your schedule.

Community events

As well as assessing the facilities and amenities a co-working space has to offer, check its website and social media profiles out to get a feel for the culture.

This might also help you get an idea of what (if any) types of community events they offer to visitors and members and see if they float your boat.

Shared community events are a brilliant way to get to know other freelancers, meet new people and make contact with other professionals who could even become your next clients.

Childcare facilities on site

Some co-working spaces offer on-site childcare services and facilities, giving you the opportunity to focus on your work or deliver that presentation, whilst knowing your kids are being well looked after and in the same building.

Dog-friendly

Most co-working spaces in Manchester are dog-friendly or offer specific dog-friendly hours where you can bring your pooch along.

Check out our freelancer information hub for even more guides, news, and advice.

The post What are the Best Co-Working Spaces in Manchester? appeared first on Freelancer News.

But is it as great as it sounds? It can be, but it all depends on what sort of room your freelancing needs. We share our favourite tips on how to set up your home-working space, and answer some of your most frequently asked questions – including what it means for your tax bill.

Can anyone work from home?

Plenty of people work from home, although you may need to make particular arrangements depending on the nature of your freelance work.

You won’t normally have much to worry about if your work is online based (beyond a decent internet connection). If you’re making changes to the property, having clients over, or running a larger operation, you might need to ask permission – such as from your landlord or mortgage lender.

Do I need insurance if I freelance from home?

Most tenants and homeowners have insurance to cover the property and/or contents, so it’s worth checking that working from home won’t affect your existing cover.

You might also need additional insurance policies depending on the freelance services you offer.

Can freelancers claim expenses for working from home?

Freelancers pay tax based on the profit they make rather than the total amount of income, so claiming tax relief on your business expenses is very important! Most business costs are ‘allowable’ as long as they relate directly to your work.

If you work from home, then you may be able to claim a proportion of your household bills as a freelancing expense too.

What are the pros and cons of freelancing from home?

These might be different for everyone, depending on what sort of work you do and who you are as a person. Some people prefer the company of others despite working alone, while others crave silence, for example.

• Cost: Working from home can be cheaper for freelancers. It’s a space you’re (probably) already paying to occupy, and you’re less likely to spend money on lunches, coffees, and transport than you might if you worked away from home. You might even escape those pesky business rates.
• Time: Having your office just across the landing really does cut that commute! This can make it too easy to be in work though, which brings us to…
• Work/life balance: When work and life happen in the same place, you may need to put measures in place so you can focus when needed, and switch off when it’s time.
• Expenses: You may be able to claim tax relief on working from home expenses which relate to your freelancing
• Distractions: Some freelancers find that setting a strict working schedule helps if this is realistic for your circumstances.
• Loneliness: Working without any human interaction can affect your mental health, so you might find you need to change things up from time-to-time
• Backups and security: Communications, client data, the work you produce – it’s all your responsibility to keep it safe! Make sure you’re the only one who can access it, and that everything is backed up.

How do I set up a home-working space?

Pinterest and Instagram’s vision of working from home might not match the reality of your freelancing budget, but a good workspace does matter. If you want to optimise your productivity and mental wellbeing, it might be time to give your office or workshop some love.

Workplace injuries are often a result of poorly set up workstations which, over time, lead to health problems including:

• Musculoskeletal disorders
• Muscle pain and wastage
• Inflamed joints
• Repetitive strain
• Eye strain, irritation, or blurred vision
• Chronic headaches or migraines

If you work at a bench, is it tall enough for you to use without hunching over? Likewise, if you need a desk, is it set to the correct height, with space for everything you need, and a good chair? Natural daylight and fresh air can also make a huge difference in your mood!

Lighting, layout, acoustics, and equipment will make an enormous difference.

Storage is also an important consideration so if you rely on paper, you might consider saving some space (and printing costs) with cloud-based work.

How to stay focused and beat distractions when freelancing from home

Distractions and interruptions can be a major struggle for freelancers working from home. Your kids might wander in, the sofa is right there, and there’s always at least one person who simply doesn’t understand that you’re working from home.

We share some of our favourite (tried and tested) tips for beating freelance distractions.

Designate your working space

Wherever possible, try to assign space that’s just for business use. Whether it’s your spare room or your garden shed, a separate workspace can make a difference to your mindset and concentration.

If that’s not practical, consider marking out your work territory in another way, for example:

• Avoiding your normal down-time lounging locations on the bed or the sofa if you’re laptop based
• Storing kit out the way after appointments if clients visit your home for beauty treatments or physical therapy

Just remember to discuss your arrangements with anyone you share your home with first!

Tackle the doom-scrolling

Knowledge might be power, but unlimited access to online information is sometimes difficult to resist. Everyone procrastinates with a spot of social media scrolling or online shopping, but it can be easy to get carried away.

There are lots of tools and apps which can help, from blocking certain sites at set points in the day, to displaying a big timer which starts when you open certain apps.

You might even set up a separate browser profile just for freelancing (double bonus points for not being followed around the internet by adverts relating to your work).

Handle family distractions

The people you live with can be very distracting, especially if you’re part of a busy household. If you don’t have the option of simply shutting the door, you could try noise-cancelling headphones, or gently remind everyone (and yourself) that you’re trying to earn a living.

Failing that, you might simply arrange your working hours around what’s happening at home. You are your own boss, after all.

Beat procrastination

Before you start setting increasingly strict rules for yourself, do you procrastinate because you’re bored or overwhelmed (or both)? It usually helps to break tasks down into smaller, more manageable chunks.

That way you can reward yourself with micro-breaks, rather than cleaning the bathroom to avoid a five-minute phone call.

Create to-do lists

Yep – this old chestnut! Just like a business plan helps you focus on your long-term goals, a to-do list will help you stay on track for the short-term stuff. Consider using a daily and weekly (and maybe even monthly) list and again, break everything down into manageable tasks.

How can I switch off when I work from home?

Separating work and home can be difficult if they both take place under the same roof. If you’re struggling to down tools (or get started) help is at hand.

Separate phone lines

Creating a separate phone line for your business allows you to switch it off out-of-hours. There’s also less risk of someone answering your work calls (and forgetting to pass on a message).

Decide what time you’re going to work

Self-employed freelancing normally means you can set your own hours – particularly if you work from home. Be flexible when you need to, but if you’re struggling to get motivated or switch off you might find it useful to set working hours. And stick to them. You can still take breaks to do other things. But stick to them.

Get ready for work (and rest)

Tempting though it may be to work in your pyjamas, be honest with yourself. Does this help you get into work mode and feel professional? Getting physically ready helps you prepare mentally, just as changing back into your chill-out clothes will help you switch-off when you’re done.

Make rules for your workspace

Freelancing is still work and you still need to hit deadlines, communicate effectively with other people, work to a satisfactory standard, and get enough done to earn a living. It’s still work.

Your health and wellbeing, work schedule, and productivity are now down to you. Boss-you needs to make some working-from-home rules. Be firm with yourself!

Work when you should be, but remember that breaks are essential for your physical and mental health.

Have a winding down routine

A routine makes the winding-down process into a subconscious habit, easing you into the right frame of mind so you can shut off when it’s time. It will look different for everyone, but it’s often helpful to clear the decks so everything’s ready to go again when you’re ready.

Create a separate work and personal login

If you use a computer or device for freelancing, separate user accounts for your work and personal lives minimises overlap. It might help you focus just as much as making it easier to disengage.

Freelance alternatives to working from home

Some freelancers love working from home and have no problem getting their work done, but if you find some days tricky (or don’t fancy meeting clients at your dining table) then you may need an alternative.

Co-working spaces

Co-working spaces are available across the UK and can normally be hired on a very flexible basis – even if you just need a meeting room for an hour.

Libraries

Libraries are free, have internet access, scanners, printers, and other people if you’re feeling a bit lonely. Just keep in mind that you might not be popular if you’re making phone calls all day. It’s also worth checking if they have dedicated silent or study areas (in case Toddler’s Storytime isn’t the vibe you were after!).

Coffee shops and cafes

Most coffees shops and cafes are happy to let you sit there and work, providing you buy relatively frequent drinks and don’t drag out your own packed lunch. You may even help a quiet place look busier!

Desk surfing or swapping

If you have an obliging friend (or two?) with space, are they happy to share or let you work there alone from time-to-time? Worth an ask!

Visit our Freelancer Resource Hub for more guides and articles.

The post Working From Home for Freelancers appeared first on Freelancer News.

In amongst the calculations for your tax bill you’ll also spot National Insurance (NI), and this is just another tax that needs to be paid.

The bright side is that most freelancers find the advantages of being self-employed more than compensate for having to sort out your own tax. There are also tax allowances, and you can claim tax relief against any business expenses too.

We always recommend you enlist the help of an accountant, especially in the early stages of becoming a freelancer, as they’ll advise you on the records you need to keep and the expenses you can claim to reduce your taxable income.

To help start you off, we’ll look at National Insurance for freelancers, how much it is, and how it’s calculated and paid.

What is National Insurance?

NI is an additional tax that individuals, who have earned income from employment or self-employment, pay in addition to their income tax. It is supposed to help fund the NHS and state benefits such as pensions, unemployment and sickness benefit, and maternity pay.

The important thing for you as an individual, is that paying NI qualifies you for certain state benefits that wouldn’t be available if you don’t pay it, such as the State Pension.

The different classes of National Insurance

There are 4 different types, or ‘classes’, of NI depending on how you earn the money that you need to pay NI on.

Self-employed freelancers are usually most affected by Class 4. Class 3 is a voluntary NI class that allows you to pay voluntary contributions to top-up your NI record if it’s incomplete. For instance, if you go through a prolonged period of unemployment, low income, or non-residence.

• Class 3: A voluntary contribution that can be paid to avoid or fill gaps in your NI record. You can check your eligibility to pay Class 3 contributions, and how much it will cost, on HMRC’s website.
• Class 4: This is a profit-based contribution payable as a percentage of your self-employed earnings once they reach the Lower Profits Limit.

If you work for an employer then you might also pay Class 1 NI, but this will be deducted by your employer and paid through the PAYE system. You won’t need to pay it twice, but you will need to include it on your tax return so HMRC can see what you earned, and what you already paid.

How much National Insurance will I pay?

Class 4 NI is based on your profits. You won’t pay Class 4 on the self-employed income you earn below the Lower Profits Limit, but you will pay it at a rate of 6% on earnings between the LPL and the Upper Profits Limit. Earnings above the UPL will incur Class 4 NI at a rate of 2%.

How is my NI contribution calculated?

As a self-employed freelancer it’s fortunately more straightforward than it looks! When you complete your Self Assessment tax return HMRC automatically calculates your Class 4 NI contribution and adds it to your overall tax bill, which is then payable at the same time as your income tax falls due.

When is my self-employed NI due?

The deadline for paying your self-employed National Insurance is the same as paying your tax bill, and submitting your Self Assessment tax return: 31st January in the year which follows the tax year you are submitting for.

For example, the 2024/25 tax year ends 6th April 2025, and the deadline to submit your return and pay the bill will be 31st January 2026.

It might seem like you have a long time to pay and get everything organised, but as a self-employed person it’s usually better to try and get it done sooner. That way you have more time to deal with any unexpected surprises, and make sure you claim all those allowable expenses!

Submitting your return early doesn’t mean you need to pay your bill early though – the payment deadline won’t be affected. In fact, if HMRC owe you money, you’ll get it back sooner!

It’s also worth looking into bookkeeping software which works out your tax liability as you go, so you always know where you’re up to.

Find more freelance support and guidance in our info hub.

The post National Insurance for Freelancers appeared first on Freelancer News.

The choice is yours, and freelancers don’t need to register as one particular structure over another, but it can be difficult to work out which option is best, especially if you are new to freelancing, in which case our guides and resources for freelance accounting might help!

Different business structures can have a big impact on how you operate and the way you pay tax, so it’s essential that you fully understand the potential benefits and implications of your decision.

While we always recommend seeking professional advice specific to your personal circumstances, here’s an overview of how limited companies and sole traders operate.

Freelancing as a sole trader

The natural step for most freelancers is to register with HMRC as a sole trader, and make Self Assessment tax submissions to tell them about their earnings. It’s less formal, but this also means there’s no legal distinction between you and the business.

In one respect this makes things like paying yourself a bit easier, because you can just keep any profits, but this also means you’ll pay tax on those profits even if you don’t take them out of the business.

The other side effect is that it also makes you personally responsible for running your business. Any liabilities, losses or debts all belong firmly to you, and not just to the business.

Can sole traders hire staff?

Despite the name, you can hire staff as a sole trader, so if your freelance work really takes off you can employ someone else (or outsource it out to another freelancer).

Can I be a sole trader freelancer and still work for my boss?

Don’t worry, sole traders are allowed to do self-employed freelance work as well as working for an employer – in fact it’s pretty common! And no, your boss doesn’t have to know that you’re working on a side hustle.

It’s also worth noting that the trading allowance means you can earn up to £1,000 of self-employed income in a tax year before you need to register with HMRC.

Pros of freelancing as a sole trader

• A straightforward Self Assessment taxation system
• Flexibility to incorporate the business as a limited company at a later date if you want to
• Greater privacy as your name and details are not published by Companies House
• Cost of compliance and tax returns are usually cheaper
• Cheaper to close the business

Considerations for freelance sole traders

As the business grows over time, there may be a point when operating as a sole trader limits the potential of the business, depending on the sort of projects you deal with. So while it’s easy to become a sole trader and also to stop, it can have its drawbacks.

Another common issue is tax efficiency. Sole traders pay income tax on all of their profits, even if they don’t actually withdraw them from the business for personal use. Limited companies pay Corporation Tax, which is lower than income tax, and then you’ll pay personal tax on any income that you pay to yourself. So, depending on how much you earn, it can be more tax efficient to operate as a limited company.

The other common consideration of being a sole trader is personal liability. If your business were to incur debts or losses, then you would be solely responsible for these, not the business.

Freelancing as a limited company

Setting up a limited company (known as incorporation) means you’re creating an organisation which is totally separate to you personally in terms of its legal identity and financial activity.

Some freelancers prefer this because it means the business is separate to them personally, which means any debts or liabilities won’t be a threat to their personal assets.

Limited companies do need to register with Companies House, and the details of all key members of the business, including directors, will be publicly available. The process is a bit more formal, and this has an impact on tax and reporting requirements.

If my company is a separate entity, how do I pay myself?

Freelancing as a limited company rather than as a sole trader means the way you pay yourself also changes. Most of the time it’s more tax efficient to pay yourself a combination of a salary, and then take dividends (which incur tax at a lower rate).

The flipside of this is the extra admin.

• The limited company must submit a Company Tax Return and pay Corporation Tax.
• Then, if you take a salary, your company must register as an employer, and pay you through PAYE.
• If you take dividends as well, then you’ll also need to register for Self Assessment too, so you can report this income and pay tax on it.

If my company is a separate entity, how do I pay myself?

• Easy and cheap to set up
• Limited liability, so your personal assets have more protection
• More options for tax efficiency
• The ability to bring in multiple shareholders or directors
• Can add business credibility
• Your company’s legal name will be protected, making it harder for other businesses to pretend to be you

Considerations

As you might expect with a limited company, there is going to be more administration to think about. It’s also worth thinking about your ongoing freelancing plans.

We say this because dissolving a limited company is not an easy process, and you can’t just deregister and walk away in quite the same way that you can as a sole trader. If you wanted to close the business altogether then the winding up process is a bit more involved.

Existing sole traders looking to switch to a limited company should also be aware that some mortgage lenders will consider this a new business, even if you have a long trading history as a sole trader. It’s perfectly possible to get a mortgage as a freelancer, but you may need to seek specialist advice or face having your mortgage application delayed if you are not already on the property ladder.

So which should I choose?

As with all other aspects of running a business, there’s no clear-cut answer as to whether registering as a limited company is the right move for you. Instead, you must consider your business objectives and financial goals.

In either case, there is no getting around informing HMRC that you operate a business as a freelancer, including reporting your earnings and paying tax. It’s why becoming a sole trader is often the first port of call for freelancers, but that doesn’t mean you have to continue as a sole trader forever.

Read our guides and resources for more help and advice on becoming a self-employed freelancer.

The post Do Freelancers Need To Register A Limited Company? appeared first on Freelancer News.

Ensuring that your pitch is strong means you stand a better chance of beating your competition to the work. It’s also helps you kickstart better client relationships. In this article, we share our top tips for building the perfect freelance email pitch.

1. Make your message concise and succinct

The chances are the person(s) you’re emailing is super busy with their own day. The last thing they want to see landing in their inbox is a lengthy email full of links and attachments. And that’s if all those links even make it past their spam filter.

To capture your recipient’s attention and engage them with your pitch, keep your email concise and succinct. The information you share should be easy to digest in a way which helps keep their focus all the way through.

That way, you’re more likely to get a response from them, and hopefully the opportunity for a conversation where you can then go into more detail. Even if their answer is no, that’s a step above being ignored!

2. Stay away from blanket messages but avoid overfamiliarity

Sending generalised blanket messages won’t get you anywhere when it comes to pitching for work.

An obvious and simple way to personalise your message is to address the person(s) directly with their name, rather than using general greetings such as ‘Hi there’. Other ways you can make a freelance email pitch more bespoke include:

• Referencing something the business has done that you’ve enjoyed or admired recently.
• Referring to the business’s brand identity, mission and/or values.
• Creating an executive summary at the beginning of your portfolio summarising why you’re pitching for the project and why you believe you’re a good fit for the company.

Just be careful to avoid any over-familiarity! It can come across as being rather aggressive.

3. Demonstrate how you share the company’s values

As well as looking for somebody with the right skillset, any client you work with will naturally gravitate to the freelancer who shares their values and ethos. If you get on and have some common ground, it will help foster a successful working relationship.

Do plenty of research about the business and its brand identity so that you can refer to it in your pitch (as well as any subsequent exchanges). Rather than simply acknowledging it, earn bonus points by going on to explain how and why you believe you’re a great match for the business or specific project.

4. Don’t let your subject line take second place

In the same way you wouldn’t go into a business meeting or a networking event with an unkempt appearance, it’s important that your subject line isn’t just an afterthought.

When you meet new or prospective clients in real life, you want to make a strong first impression and your physical appearance plays a huge part. A well-thought-out email subject line is the digital equivalent of this.

Compose a subject line that doesn’t scream ‘spam’, whilst still standing out in an email inbox with high traffic so that your message turns the right heads. The best ones in this scenario get right to the point by summarizing what the email is actually about. For instance: ‘Conscientious freelance copywriter for financial services content’.

Avoid truncating the subject line by keeping it short, sweet and to the point, as well as ensuring that it’s clear what your email is regarding.

It’s also worth keeping in mind that some email platforms preview a few lines of the email message itself, as well as the subject line.

5. Ask a peer to proofread and sense check your pitch

Ensure that your spelling and grammar are tip-top when sending emails to prospective clients. Typos and poor grammar send out negative signals, and will most likely result in your email being sent straight to the bin, rather than inspiring a response.

Get someone to sense check your email pitch from the perspective of your desired recipient. Not only will it help flag up any spelling or grammatical errors, but it will also help make sure that the way you’ve formatted and delivered your information makes sense. Test a few different subject lines on them too!

6. Make sure your portfolio and online profiles are up to date

When you pitch to a potential client, they’re very like to hunt you down on social media to get a feel for what you’re all about. Make sure your social media profiles are up-to-date and work-friendly so that you can start making a great impression even prior to meeting.

Similarly, if you share links or attachments to your portfolio along with your email pitch, make sure you’ve given them a refresh so that you’re circulating the most current (and impressive) version.

7. Be confident but not arrogant

It goes without saying that confidence is key, and that confidence is an appealing attribute in anybody you’re going to work with. However, there is a thin line between confidence and arrogance.

Stay on the right side of it by communicating your experience and achievements in a matter of fact and authentic way. You don’t need to overdo the humility either (which can seem just as false).

Another important thing to remember here is honesty. Exaggerating or embellishing your experience might win you the work to begin with, but doing so is more likely to start your working relationship off on the wrong foot. Particularly if you badly underdeliver on your claims!

8. Don’t forget to follow up – but be patient

Last but certainly not least, make sure to send a follow-up email to demonstrate your eagerness and help push your pitch to the top of the pile.

Choosing when to send this follow-up message can be tricky and it largely depends on the individual circumstances. For example, if you’re responding to a call-out for pitches, the client might have stipulated a date by which they intend to respond. However, if you’re reaching out with a pitch of your own, you can approach your follow-up tactics differently.

Whatever the scenario you’re in, just be sure not to send your chaser too early or this might come across as impatient and annoying.

Check out our freelancer resources and guides for more support and guidance.

The post How Do I Write a Freelance Email Pitch? appeared first on Freelancer News.

This spike seems a direct result of the pandemic, but many businesses have kept the remote-first culture. Of course, working from home also affects freelancers, sole traders and self-employed people who were working remotely long before the pandemic.

Fortunately, there is tax relief available if you work from home and use personal resources for your business, so it’s time to make sure you’re taking advantage of it!

To help you make the most of the relief that might be available to you, we explain what self-employed people can claim when working from home, and how to go about calculating it. We also address a number of frequently asked questions, including:

• Do I divide work from home expenses by how many people use the space?
• Do I need to pay business rates to qualify for work-from-home expenses?
• What happens if my workspace has a dual personal use?

What expenses can self-employed people claim when working from home?

Self-employed people who work from home can claim many of the costs which relate to their business as an allowable expense, such as:

• Electricals (e.g., lighting)
• Gas and heating
• Maintenance and repairs
• Internet and telephone costs
• Water, in eligible cases (i.e., if you are a hairdresser who needs to use a lot of water as part of your business activity). Water usage needs to be substantial and directly related to the business.

What’s crucial is that you only claim for expenses which relate to your business. So, if you claim for maintenance costs, they must relate to the room that you use for business, and so on.

How to calculate working from home expenses

When it comes to calculating what you’re going to claim as a home-working expense, there are two main options: simplified expenses (also known as the flat rate expense method), or as a proportion of your costs. As long as you’re eligible for it, it’s up to you which method you use – so it’s worth calculating your expenses to see which method is most beneficial to you!

Explaining simplified expenses for freelancers

The simplified expenses route is a great option if you work from home for 25 hours or more every month. You’ll claim expenses as a flat rate set by HMRC, on the basis of how many hours of home-working you do.

Here’s the breakdown of what you can claim depending on the hours of business-related home-working you do each month:

The main benefit of claiming your WFH expenses this way is that you won’t need to calculate what proportion of your bills were used for business-related activity. Hence why they’re called simplified expenses!

It’s important to note that the flat rate expense method for working from home does not include telephone or internet expenses.

You will need to claim these by working out the actual cost of your business usage instead.

The downside of simplified expenses is that, in some cases, the flat rates might not be high enough to cover the actual costs you incur. In that case you can use the costs method to claim your expenses instead, but it’s useful to have a good idea of what your costs are, to make sure you use the right method.

Claiming the cost of working from home using the costs method

Rather than using a blanket approach like the flat rate method, working out your actual costs can be rather revealing – it’s often more than you think!

Just make sure that you use a fair method to work out costs. You might need to show that you’re only claiming for the portion of your expenses which relate to business use, and not personal use.

For example, you have a house with 5 rooms in it, and use one of them as an office. One fifth of your home is used for business. If your electricity bill for the month is £100 (and these days – lucky you!), you can claim one fifth – £20.

Do I divide work from home expenses by how many people use the space?

Yes – if two or more people use the same office space in your home, you will need to divide the allowable expenses between yourselves. You won’t each be allowed to claim the full amount, but there might be the possibility for higher relief on utilities and bills according to specific usage.

Do I need to pay business rates to qualify for work from home expenses?

Whether you pay business rates or not, you will still be able to claim tax relief if you use your personal property for some business-related activity.

Whilst we’re on the subject though, if you only use a small portion of your home for work-related activity, you won’t need to pay business rates. For example, if you work from a home office or run an eCommerce business that requires you to send goods by post, you don’t need to worry about business rates.

However, there are some instances where you might need to pay business rates and Council Tax, including:

• If your property is part-home, part-business (e.g., if you live above a takeaway restaurant)
• If you have employees who work at the property
• If customers come to your property to purchase goods or services
• If you’ve made significant alternations to the property to accommodate business-related operations (e.g., if you have extended to build a home gym for personal training services)

What happens if my workspace has a dual use?

If you use a room or a space in your home for personal use as well as for work-related activity don’t worry, this is absolutely fine. It just means that you’ll need to work out how much of the time it is used for business, and how much of the time is for personal use.

Find even more advice and guidance for freelancers in our info hub!

The post How Do I Calculate Expenses for Working from Home? appeared first on Freelancer News.

One of the most troublesome topics that mobile business owners often find themselves navigating is the matter of travel expenses. Many are unsure as to whether they are able to claim travel expenses and as a result, wind up in a muddle when it comes to their accounts, bookkeeping and tax returns.

Fear not though, freelancer, because we’re here with some expert advice on the subject to hopefully answer your questions and iron out any confusion you may be experiencing.

What qualifies as a mobile business?

A mobile business is exactly what it says on the tin – a service, offering or profession that is mobile, as opposed to being rooted in one permanent location such as a shop or office.

Some common examples of mobile businesses include:

• Hairdresser
• Nail technician
• Make-up artist
• Gardener
• Dog walking and/or training
• Plumber
• Electrician
• Food truck
• Pet grooming
• Personal trainer or sports coach
• Educational tutor
• Bicycle repair
• Car valet
• Event or wedding planner
• Photographer
• Influencer

These are all businesses that don’t require bricks-and-mortar or a fixed location in order to function or provide for their customers. The benefits of operating in this way are manifold, including being able to expand your reach and limit the cost of overheads that non-mobile businesses are subject to.

As a mobile business owner, the nature of the job means you’ll likely spend a great deal of time travelling from A to B. That’s why it’s so important for mobile entrepreneurs to understand what they can claim back as travel expenses.

What kind of costs are covered under travel expenses?

Travel expenses are allowable for any journeys you make for business reasons, outside of travelling to your normal workplace. For example, if you have an office, you can’t claim for the cost of travelling there from home, because it’s your normal place of work.

But, if you need to make a different journey, such as buying train tickets to a client meeting or staying overnight in a hotel for a conference, these are allowable.

Other typical examples of travel expenses include:

• Flights
• Transport such as taxis and trains
• Car rental
• Lodging
• Food
• Fuel
• Parking

Are mobile business owners allowed to claim travel expenses?

As somebody who works for a business, you cannot claim travel expenses for travelling from your home to your place of work. So, for example, if you work in a shop or in an office and you’re based there every day, you can’t claim for your commute.

For mobile business owners, however, things are a little different because you are allowed to make reasonable travel expense claims for journeys to and from a temporary place of work.

A hairdresser or plumber, for example, who has to travel from their home (or elsewhere) to a client’s premises in order to deliver their service, is allowed to claim the cost of this work-related travel.

This includes things like:

• Train, bus and underground tickets
• Car mileage
• Road tolls
• Taxi fares
• Parking costs
• Ultra Low Emission Zone (ULEZ) fees (London only)

The 24-month rule for claiming expenses

If you’re working on an extended contract then you might need to travel to and from a premises for a longer period of time. The trouble is, do this for too long, and it starts to look like it’s regular place of work, and you’re just sneaking in expense claims for it. To clear things up, HMRC introduced the 24-month rule.

The 24-month rule dictates that if a contractor works at a temporary place for a rolling period of 24 months or more, they aren’t able to claim travel expenses.

These time periods are based on contract expectation, rather than on how long the contract ends up being. Below are a couple of examples to demonstrate what we mean by this.

First Scenario:

You agree to a 12-month project for a client, which involves travelling to their site every day. Because the expected length of the contract is less than 24 months, you can claim travel expenses.

The project is extended for another 6 months, which brings the contract to 18 months in total. You can still claim, because you are within the 24-month period.

Second Scenario:

You agree to a two- and half-year contract, which involves travelling to the client’s site each day. The contract is expected to be longer than 24 months, so you cannot claim travel expenses, even if the contract ends up taking less time.

Third Scenario:

You agree to an 18-month project for a client, which involves travelling to their site every day. Because the expected length of the contract is less than 24 months, you can claim travel expenses.

The project is extended for another 12 months, which makes the contract longer than the 24-month period. You cannot claim travel expenses for the extended period.

The 40% rule for travel expenses

It’s also crucial to be aware of the 40% rule because it overrides the 24-month rule in scenarios where you don’t work more than 40% of their time in one place.

A workplace is classed as temporary when a contractor spends less than 40% of their time there. Again, this is a rolling, cumulative amount, just like in the 24-month rule regulations.

It’s worth noting here that HMRC defines a ‘place’ of work not as the final destination (client premises) but rather as the journey you take to get there.

An example:

If an electrician has three different clients all based in Manchester city centre and goes to each of their premises on a different day of the week, HMRC classifies this as one ‘place’, as the journey to reach each one is substantially similar.

So, where the 40% rule is concerned in this example, the contractor would need to consider how much time they’re spending in Manchester city centre – not how much time they’re spending at each individual client premises in this vicinity.

These are all vital factors that come into play when calculating what travel expenses a mobile business can claim for.

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

The post Can I Claim Travel Expenses If I Have a Mobile Business? appeared first on Freelancer News.

The world of work is so diverse that it’s even more important to make sure you get tax right for your particular solution. In this post, we are tackling the (sometimes thorny) subject of self-employment and what it means if you are also employed. We’ll cover:

• Tax and employment law are different things
• What are HMRC worried about?
• What is self-employment?
• Can you be self-employed and work for only one company?
• A word about directors
• Can you be both employed and self-employed by the same client?

Tax and employment law are different things

This is an important distinction, but one that is often not made clear. Surprisingly a person can be classed as employed (or a “worker”) for employment purposes but still be self-employed for taxation, such as in the famous case of Pimlico Plumbers. So, it is important to state that we are talking here about tax law here.

We could write a book about the differences and indeed, the area is so complex that there have been numerous cases which have, rather confusingly, found for both sides of the debate over the years.

The overall message has to be that you need to be really careful, and not take a view based on one case. Look at all of the circumstances of your situation even-handedly and of course, if you are unsure, take advice!

Why is my employment status so important?

Employers pay National Insurance Contributions (NICs) and pension contributions on the wages and salaries that they pay to their employees. The employees also pay tax and NI on what they earn.

If they use the services of a self-employed person, the business is able to avoid making these employer’s contributions by contracting with someone, rather than employing them.

Consequently, many employers took advantage of this distinction over the years. It’s why HRMC is wise to the idea, and introduced rules about disguised employment in order to tackle potential tax avoidance.

Essentially this follows the duck rule; if it walks like a duck and quacks like a duck, then it is probably a duck. If someone looks and acts like they are employed, then their employer should be paying national insurance!

What is self-employment?

Self-employment is where someone is working on their own behalf. They could have hundreds of customers or only a few but they will be working in their own business.

Typical features of self-employment from a tax point of view include:

• The person has control of how they do their work
• They insure themselves
• They advertise or seek work rather than being presented with it
• They provide their own equipment
• They have to put things right at their own expense if they go wrong
• They have no obligation to accept work
• Their client has no obligation to offer them work

A self-employed person who works as a sole trader will submit a Self Assessment tax return each year and pay their own tax and NIC, rather than having an employer deduct them from their wages. They’re also responsible for their own pension and sick pay.

Can you be self-employed but only work for a single client?

Yes, you can, but you do need to be careful that what you’re doing isn’t actually ‘disguised employment’.

HMRC accepts that people might well be self-employed but work for one company at a time. For instance, if the person had just started out in self-employment and was actively seeking more clients, without the knowledge of their employer.

It is also possible that people may work for only one client at a time, and then move on to another job. For example, someone doing a specific role in a project, a camera operator working on a film, or a social worker doing an assessment.

The question is whether, over a reasonable period of time, they either have more than one client or they are looking to get more. So, although a camera operator may work solely on one film at a time, if you look at what they do over the course of a year or two, they may work on several.

What does this mean for company directors?

Directors fall into a category all of their own called officeholders. It’s often the case that directors think they should be paid as self-employed people, especially where they hold more than one directorship (a portfolio director) or where they are acting in a non-executive capacity.

However, HMRC mandates very clearly that all officeholders should be paid through PAYE and aren’t actually self-employed. In this respect, directors are basically an employee of the company, even if they own the company.

Can you be both employed and self-employed by the same client?

It is possible to both be employed and self-employed by the same company, but you have to be very careful. If you look like you are employed, then you probably are!

As an example, imagine a person who works as a graphic designer part-time. The company asks them to do more work on their non-working days, and to bill them as a self-employed person.

It’s difficult to see how this couldn’t be disguised employment. They’re doing exactly the same work, for the same client, at their instruction and using their equipment. In this case HMRC would say that they should be paid through PAYE.

So how could you both work and not work for a company?

Now let’s imagine someone who works as a delivery driver for a business and also has her own DJ business at nights and weekends. She’s very popular and often works 3 or four nights a week in local clubs and at weddings, meaning she has a wide range of different clients, and she also advertises for work.

The company pay her to DJ at the annual Christmas party using her own equipment. In this case, we can see that she meets the tests of self-employment and the work she is doing is highly unlikely to be covered in her employment contract. In other words, it is outside the scope of the PAYE employment.

She’d have an arguable case that the two were completely different and could be paid as a self-employed person.

In truth, the majority of cases won’t be so clear cut as these, so you need to be careful. If you are unsure, then it is always sensible to put it through PAYE.

Summary: self-employment Vs PAYE – a case of blurred lines

The main problem when we are talking about self-employment is that many of the rules aren’t totally clear, and it’s a difficult task to make a single rule to fit every situation. Add into the mix where people are employed at the same time, then you have a recipe for disaster.

Frankly, in the majority of cases, you’ll know whether you should be paid PAYE or self-employed. Remember that HMRC see cases like this every day, so we can promise that anything you think of, HMRC has already seen!

Deliberate deception allows HMRC to double the penalties it levies as well as charging you for the tax and NICs not paid, as well as interest on top, so it really isn’t worth it.

Where your case is not clear cut then you do need to take advice and make sure you are playing fair. Even if you get it wrong, HMRC will often take the view that if you took advice, you did everything you reasonably could and so are less likely to hand out penalties.

Find more freelance support and guidance in our info hub!

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However, if you are going to go down the route of secondary self-employment, alongside your regular ‘day job’, there are some things you need to consider. For example, if you earn more than £1,000 from self-employment activities in a tax year, you’ll need to let HMRC know by registering for Self Assessment. And then, of course, submitting tax returns so that you pay the right amount of tax on your earnings.

Informing HMRC is one thing, but what many side-hustlers are concerned about is their employer finding out about their extracurricular activity.

Can you register for self-employment if you’re already employed?

Absolutely! Even if you’re on the payroll for a full-time or part-time job, you’re still allowed to work for yourself outside of those hours. For example, somebody who works in marketing might do some freelance copywriting or social media management on the side. This secondary source of income classes as self-employment and can run parallel alongside their regular employment.

The benefits of working for yourself as well as for an employer are many, but the most common include:

• Earning more money – perhaps the most appealing advantage and most common motivation.
• Being able to develop and explore the skillset you use in your regular role.
• A chance to dip your toe into the water of new or alternative skills that you aren’t able to fulfil through your employment.
• Expanding your network of contacts.
• Being able to turn a passion into income.
• You get to learn a great deal about business ownership and being on the other side of the books.

Will a full-time employer find out if you’re self-employed?

Unless you tell your employer directly, there is no reason why they should have to find out about your self-employed work. The only other way they might find out is if you tell a colleague or mutual connection about your side hustle and it gets back to your employer that way.

However, in terms of tax codes and self-employment registration – two things that many employed people are concerned will give them up – you’ve got nothing to worry about.

Your tax information is highly confidential so HMRC will never inform your employer if you register as self-employed. Nor would that be necessary as your PAYE income and self-employed earnings are entirely separate in the eyes of HMRC. The only reason that this might change is if you ask HMRC to collect your self-employed tax through your tax code.

What if I register a limited company?

The only other way this might become a potential issue, if you’re hellbent on hiding your side job from your employer, is if you register a Limited Company.

These details are shared publicly on Companies House so all your employer would need to do is a quick search to find information about your business. That said, it’s highly unlikely they would do this unprovoked, or without prior knowledge.

Is honesty the best policy in this situation?

Although it’s very unlikely that your employer would find out about your self-employed work without you telling them directly, is it worth being transparent with them about it?

Honesty is usually the best policy, but the decision is yours alone to make. Just consider:

• There might be something in your employment contract that forbids you from having any additional work, which means a side job would be in breach of that.
• Transparency lays the foundations for a healthy relationship with your employer – something that is going to be pivotal in your future success within your role there.
• If your employer is supportive of your self-employment, they might even be able to help you out with some contacts or advice.
• Again, if your employer is in support of your side hustle, making them aware might mean they can be more flexible around things like annual leave and working hours to accommodate your other commitments where possible.

Our top tips on balancing more than one job

If you are juggling both regular employment and self-employment, it can be tricky to strike a healthy balance between the two. The aim of the game is to find a balance that means you can maintain your own wellbeing whilst ensuring that you’re doing your best possible work for all involved.

Here is our advice on how to master the juggling act:

• Be realistic about what your clients can expect from you – and be honest with them about it!
• Identify your goals. Are you hoping to make some extra income, or to become fully self-employed, for instance? Keep these in mind – it will help you remember when it’s time to say no!
• Know when you’ve reached your capacity so that you don’t get burnt out.
• Make sure you’re registered as self-employed so that you can report your additional earnings to HMRC and pay the necessary deductions. Failing to do so could land you in some serious trouble.

Wondering where to begin? Read our guide to becoming a freelancer!

The post Will My Employer Know If I’m Self-Employed? appeared first on Freelancer News.

Making the transition from a permanent job to becoming a full time IT freelancer can take time. It can be scary, but accepting there will be quite dramatic changes in your normal daily routine will help when the changes come. Prepare to be flexible, and be ready to use skills that are outside of your comfort zone pretty much straight away.

Routine? What routine?

Don’t expect a structured day to reveal itself when freelancing, because with all this flexibility comes the need for you to structure yourself. Plus, as an IT contractor, you’re more than likely used to unexpected problems popping up anyway!

Often you won’t have access to the resources of a permanent job, and there’s not much delegation around when you’re a freelancer. It’s very much a case of rolling up your sleeves and getting the job done.

Freelancing can bring in long hours, or at least, hours you hadn’t planned for your working week.

It’s up to you to structure your own day and be disciplined. Make certain hours ‘off limits’ for work, give yourself a proper lunch break, and avoid the temptation to work through. It’s important for freelancers to protect their mental health.

Reward yourself through a working day, and you’ll be a lot more productive. Stepping away from the laptop for a short period can really help you focus through the day.

Winning new clients and customer service

Would you hire you? Look at your services, freelance brand, and prices. When a client hires the services of an individual IT freelancer, they are normally looking for ad hoc expertise, rather than an employee. They might have already spoken to an agency, only to be scared off by an expensive pricing structure and a rigid approach to the whole process.

Working to your strengths when pitching for work is the most reliable route to winning more jobs. As a freelancer, you can offer something different that larger organisations can’t, so don’t be shy about drawing attention to what makes you unique.

For instance, a more personable approach, and not having to deal with ‘account managers’ can go a long way, and it’s a great way to retain clients (so you don’t need to keep pitching for new business quite so much!)

Keep learning

The IT industry is a fast mover. New technologies are always arriving into the marketplace and, as a freelancer, you can be much more adaptable than a larger firm with the kind of infrastructure that makes it difficult to scale.

Make sure you have plenty of strings to your bow, and carry that knowledge and flexibility to win new business. Look to gain experience of new technologies whenever possible, that kind of experience can be valuable further down the line.

The post Starting Out as an IT Freelancer appeared first on Freelancer News.