How to Register as Self-Employed as a Freelancer

How to Register as Self-Employed as a Freelancer

Many freelancers start off keeping their day job and freelancing in their spare time. It can be a good way of finding your feet and trying it out before taking the plunge and going freelance full-time.

However, because of the casual nature of the work, some freelancers are in danger of ignoring the legal implications of working on the side. You might not think your side venture counts as a business but it does, and you have certain responsibilities as a result.

Whether you’re planning on setting up a full blown business or are just thinking of an occasional casual thing alongside your job, the rules are the same and you still need to register as self-employed with HMRC if you plan to make any money from your ventures.

The good news is that it’s fairly easy to do.

 

What does being a sole trader actually mean?

As a freelancer, you’re going to have to register as self-employed and more specifically as a sole trader.

Despite how it sounds, it doesn’t actually apply to people who just work alone. So you can take on staff if you want. It just means that you’re solely responsible for the business.
 

How to register

You should register as soon as you can after starting your business and can through the government’s website here.

You have until 5th October in your business’s second tax year in order to do so. If you don’t register in time you won’t face a penalty as long as you send your tax return and pay your bill on time.

How you register will depend on whether you’ve ever sent tax returns before.
 

Never sent one?

If you’re a sole trader who has never sent a tax return, you need to tell HMRC you want to be a sole trader by registering as a new business.

You will then register for Self-Assessment tax returns which you’ll use to report your income at the end of every tax year, and National Insurance at the same time. For more information about the different types of National Insurance you need to know about, click here.
 

Sent a tax return in the past?

If you’re a new sole trader who has sent a tax return before as an individual for things like investment or rental income, you will need to register as self-employed.

You will also need to register for Class 2 National Insurance using a CWF1 form. This will allow you to continue using your Self-Assessment account.

In order to do this, you will need your Unique Taxpayer Reference (UTR) so that HMRC can link your accounts. You can find this on your previous tax returns, online account or from documents from HMRC. Contact HMRC is you can’t find your UTR.
 

Starting up again?

If you’ve ever registered or done business as a sole trader, then you will need to reregister in order to set up trading again. You will need to reregister using the CWF1 form and your UTR so that you can use your existing account.

The process of registering as a sole trader will take around 10 working days, or up to 21 if you’re registering from abroad. This is because HMRC will post you an activation code which you will need when you sign into your online account for the first time.

Once you’ve registered and set up a system for managing your finances you can then go about growing your business. You may even want to hire an accountant who can take care of your bookkeeping and taxes so that you’re free of the stress and the time that you could be spending elsewhere on working on your business.
 

Your responsibilities

The work’s not over once you’ve registered. As a business owner, you have certain legal responsibilities in order to comply with HMRC’s rules to avoid getting penalised.

It’s important to make sure you’re always running your business by the books and aware of how much tax you’re going to owe so you don’t get hit either with a nasty surprise or even a fine if you don’t pay your taxes on time.

In order to keep your business above board, you will need to do the following:

  • Keep records of sales and expenses, including bills for expenses
  • Send a Self-Assessment tax return each year
  • Pay income tax on your profits and Class 2 or 4 National Insurance
  • Settle debts
  • Register for VAT if your turnover reaches the threshold of £83,000

Hiring an accountant will make this process easier as they will be able to give you the best advice regarding things like expenses and tax efficiency as well as making sure that your business is doing everything the right way.

Hiring an online accountant and using a free accounting software like Pandle will help you save money.
 
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.

Handling Negative Reviews as a Freelancer

Handling Negative Reviews as a Freelancer

As a freelancer, you kind of are your business, and so any negative review is going to feel like a personal attack. This is totally normal, so it’s not unreasonable if your emotions temporarily get the better of you.

That said, while lashing out might feel good in the moment, it won’t help you attract prospective clients in the future.

Reframing a “bad” review is an opportunity to improve and demonstrate your commitment to client satisfaction. To help you out, let’s go through some of the things you can do to make sure you’re dealing with negative reviews in the right way.
 

Find the feedback

It might seem obvious, but you can’t deal with a review you’re not even aware of! How do you make sure you don’t miss anything, though? After all, it’s not called the world-wide web for nothing.

Well, the first thing you can do is make a habit of regularly checking the relevant review sites and social pages. This should ensure nothing escapes your notice.

Alternatively, you could consider using some kind of social listening tool to automate the process and help you find feedback you’re not tagged in.
 

Assess the situation

It’s important not to react right away. Before you do anything, verify that the review is in fact legitimate (and not someone trolling).

You should then conduct an internal investigation into whatever the complaint is about, making sure to be as thorough as possible so you can determine exactly what happened and whether or not the person is justified in feeling aggrieved.
 

Respond promptly

This initial response is really just about acknowledging the review and letting the person know that you’re looking into the matter. In that sense, you can think of it as a kind of placeholder.

Still, though, it’s a good idea to apologise and express your sympathy up front, as this shows you care about your clients’ feelings – regardless of why they feel the way they do.

Again, try and refrain from going on the offensive (we know it’s tempting). It tends not to be very constructive and only serves to make you appear as if you don’t care, or are above taking criticism.

Also bear in mind that any response you post online or on social media will be visible to prospective clients, and it may be a deciding factor in whether or not they ultimately choose to enlist your services.
 

Take the matter offline

After posting your initial response, you should contact the client directly (by email, telephone, or even direct message) as a way of following up. This once again demonstrates your commitment to rectifying the situation.

You should do your best to explain what (if anything) went wrong, based on the results of your internal investigation.
 

Knowing what to do next

If you are actually at fault, then simply own up to your mistake and hope the person appreciates your honesty. If not, you should still apologise for the fact they aren’t happy, but there’s no real point going into any kind of detail.

It’s also advisable to ask the unhappy client open-ended questions, as the answers to these might provide you with more clarity on what steps you can take to fix the situation and prevent it from happening again in the future.
 

Rise above it if you have to!

Of course, it’s impossible to please everyone, and you will sometimes have to accept letting a situation remain unresolved (as annoying as this is).

Even when dealing with a difficult or unreasonable client, though, you should conduct yourself with grace and try to find the silver linings (e.g. feedback which can be used to help you improve moving forwards).

People will be people at the end of the day, and sometimes there’s just nothing you can do.
 

Update your public response

The final thing you should do is revisit your initial response and update it to reflect the fact that you’ve spoken with the client and (hopefully) resolved the matter.

Your final response should confirm that you carried out an investigation and contacted the client directly to follow up.

In addition, it should state whether the outcome was positive or negative, and it wouldn’t hurt to chuck in one last apology for good measure!

Now, if you fancy pushing your luck, you can test the waters and see if the client would be willing to either change their original review or write a separate testimonial speaking to the way in which you reached out to sort their issue.

 
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.

Best Accounting Software for Freelancers

Best Accounting Software for Freelancers

The importance of having good bookkeeping software can’t be overstated, and this is especially true if you’re doing everything yourself.

One of the main advantages of being a freelancer is that you answer to no one, but this also means you’re solely responsible for ensuring the smooth running of your business. No pressure!

Bookkeeping, the process of recording all the transactions in your business, is one area where it can be particularly difficult to keep track of everything all on your own, which is why good software can prove invaluable, simplifying your financial management and saving you precious time in the process.

There are lots of great options out there, though. So how does one know which to pick?

Well, hopefully we can help with that, as we’ve compiled a list of the three best bookkeeping software applications for freelancers based in the UK. We’ll go through the pros and cons of each, and see which one comes out on top.
 

Xero

This is one of the most popular and well-established options in the UK, among businesses and self-employed individuals alike. Some of the key features include:

  • Real-time bank feed integration
  • Customisable invoicing
  • Detailed financial reports (profit and loss, etc.)
  • Making Tax Digital (MTD) compliant

 

Pros

A big factor in Xero’s popularity is its commitment to integrating third-party apps (PayPal and HubSpot, for example). This allows the software to feel somewhat familiar, even if someone’s never used it before.

On top of this, Xero’s overall design is incredibly intuitive, and this further reassures new users, who actually get the sense they know what they’re doing.

Xero is also just a good all-round option, being suitable for businesses of every size, and in every kind of industry.
 

Cons

In spite of the intuitive design, there are some more advanced features which new users might struggle to make proper use of right away.

And then there’s the price. The premium plans offered by Xero are a little more costly than many of those offered by its competitors, and so this is something to take into consideration.

What’s the difference between the standard and premium plans? For starters, the standard plan puts a limit on the number of invoices you can send, as well as the number of bills you can enter.

You also miss out on several key features, such as the ability to track projects and use multiple currencies.

Essentially, the more expensive the plan, the more features you have access to and the less restrictions are placed on you.
 

FreeAgent

This is another leading bookkeeping software specifically designed for businesses, freelancers, and contractors based in the UK. Its key features include:

  • Self-Assessment and tax calculation
  • Project management (track time and expenses, etc.)
  • Real-time bank feeds
  • MTD compliant

 

Pros

The main advantage of using FreeAgent as a freelancer is that it boasts features which are specially tailored for people like yourself. A prime example of this is the project management tool, which is ideal for those who bill by the hour (like most freelancers!).

Pricing is also inclusive, meaning you are able to have unlimited users, clients, and projects. It’s a fixed price at £14.50/month for the first six months, and £29/month thereafter.
 

Cons

FreeAgent is obviously less equipped to handle larger or more complex businesses, but this shouldn’t really be a concern if you’re self-employed.

There are also limited integration options in comparison to software like Xero.
 

Pandle

Last but not least, there’s Pandle, which offers free bookkeeping software for freelancers and business owners. What are some of the key features?

  • Send quotes and invoices
  • Automated payment reminders
  • Bank reconciliation
  • Accept invoice payments online
  • Mobile app
  • Business reports
  • Multiple currencies
  • MTD compliant

 

Pros

First of all, ease of use is a priority, with Pandle having been built to be used by pretty much anyone. It even has safeguards in place to help users minimise the risk of making mistakes in their bookkeeping – so even if you think you’re rubbish when it comes to tech stuff, you can rest assured you’ll be fine.

If you do find you need assistance, though, you’ll have access to a support team of specialist bookkeepers.

Another big thing is that it saves you time by automating a lot of the more boring and usually lengthy processes.

In addition, Pandle includes features to assist you in working with customers and suppliers more efficiently, and these are all on top of the standard banking, accounting, invoicing, and reporting tools.

What about pricing? Well, as previously mentioned, the base version is totally free, but even the paid tier (Pandle Pro) is still reasonably priced at £5 + VAT per month. This makes Pandle a more viable option for freelancers than a lot of the other ones on the market.
 

What’s our verdict?

Xero is an excellent one-size-fits-all option, with its real-time financial insights making it a top choice for businesses looking to streamline their bookkeeping.

FreeAgent, on the other hand, is a great choice for freelancers specifically, offering a straightforward tool that simplifies self-employment tax, as well as project tracking.

All in all, though, it must be said that Pandle offers the most comprehensive package at the best price point. It’s not just an affordable alternative; it’s a top-quality service, and the perfect choice for any freelancer who wants to finally take control of their accounts (but without breaking the bank).

 
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.

Can Freelancers Get a Mortgage?

Can Freelancers Get a Mortgage?

There are numerous benefits to being a freelancer, the most obvious one being increased freedom and flexibility in all areas – from where and when you work, to who you work with and what kinds of projects you choose to work on.

As a freelancer, your destiny is in your own hands, and this is the main reason so many people have made the switch and gone out on their own.

But the road less travelled is often precarious, with freelancing bringing its own set of challenges.

When it comes to securing a mortgage, for example, you may discover that you have your work cut out for you.

Why, though? And what, if anything, can you do about it? Let’s take a look.
 

Is it harder to get a mortgage as a freelancer?

Generally speaking, yes – it can be. From the perspective of a potential lender, freelance income is typically considered to be far more unpredictable than a salaried income. Someone who undertakes freelance work simply can’t provide the same level of certainty or reassurance as someone who is a PAYE employee on a fixed annual salary.

The reality is that not all loans are created equal, and so it’s reasonable to assume that, as a freelancer, you will be judged more harshly than someone in full-time employment.

On top of the fluctuation typical of freelance cash flow (which can be a red flag to mortgage lenders), there are also business expenses to consider on top of your personal costs, and these can further affect your ability to pay back what you owe.
 

What can freelancers do to help secure a mortgage?

So, where does that leave you? Is it all doom and gloom? Thankfully not, as there are some steps you can take to try and improve your overall attractiveness to potential lenders when you’re getting ready to buy a house as a freelancer.
 

Put down a bigger deposit

In most cases, the bigger the deposit, the more reliable (and therefore attractive) you’ll appear to a lender.

You’re essentially putting your money where your mouth is and demonstrating your commitment to repaying the loan in full, which of course makes the lender feel better about the whole thing.

It ultimately comes down to your own unique situation and financial circumstances, meaning it’s a good idea to seek advice from a specialist in the field. A mortgage broker or lender will be able to go over your options, and a good accountant will be able to get into more detail about affordability.
 

Gain experience as a freelancer

As we’ve established, mortgage lenders can be wary of freelance applicants due to the unpredictable nature of freelance work, which can result in missed payments.

It’s smart to try and log at least two to three years’ worth of freelancing financial records before you approach any potential lenders, as this way you’ll have something to point to which demonstrates your reliability.

You’ll still need to show that you have plans for the future, but, more than anything else, historical information serves to reassure lenders that you actually know what you’re doing (no small thing).

Also, you can use the extra time to increase the size of your deposit!
 

Maintain a good client list

Like the financial records, a good client list will go a long way towards convincing a potential lender that you can be trusted to deliver.

The best way to attract clients is by putting a marketing plan into effect, and this should include such things as an online presence and pitching. If you’re just starting out, you’ll want to start relatively small and build up to taking on more work (and from a wider variety of clients).

One thing to remember is not to put all your eggs in one basket, so to speak. For example, by relying on one big client who could up and leave at any time. At the beginning, you want to focus on baking muffins, not cakes!
 

Keep good credit and business records

This should really go without saying, but any potential lender will more than likely conduct a credit check on your business, and so it’s a good idea to deal with any outstanding loans in advance.

More generally, you should also ensure your records are in good shape (accurate/up-to-date) and keep an eye on your cash flow.

If you think you might need help with this but you don’t want to hire an accountant or bookkeeper, good bookkeeping software will automate the whole process, meaning you don’t have to rely solely on your own judgment.

It’s also worth noting that if you operate as a sole trader, then legally speaking there’s no difference between you and the business. It makes it even more important that you can show a separation between freelancing finances, and your personal transactions.
 

Find an accountant

Working with a good accountant can be another marker of stability in the eyes of a mortgage lender. They’ll help you keep your finances in order and minimise mistakes, while an exceptional accountant will also advise you on how to be more tax efficient in the process.

Of course, they can also assist you with a mortgage application, making sure you’re giving yourself the best possible chance.
 

How much can a freelancer borrow?

Unhelpfully, there’s no cut and dried answer to this, as borrowing is based on an individual’s annual income and unique circumstances. This means the amount you can borrow is different for everyone.

Generally speaking, though, the higher your annual income, the more you will be able to borrow, and an accountant can help you get the best deal possible.

 
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.

Can I Freelance for an Old Employer?

Can I Freelance for an Old Employer?

You don’t want to get in trouble. So, what exactly are you supposed to do when a previous employer reaches out looking to enlist your services on a “freelance” basis?

Does it matter that you used to work for them? Would you fall inside IR35 if you were to say yes?

You probably have a lot of questions (including, “What’s IR35?”), but that’s ok because we have a lot of answers.
 

What is IR35 for freelancers?

In a nutshell, the IR35 rules were brought in to make it more difficult for employees to avoid tax by working for former employers through their own limited companies. They’re part of a wider initiative to try and tackle the issue of tax avoidance.

Now, you might be wondering what exactly constitutes a disguised employee. This is basically a person who works for someone on a self-employed basis, when in reality they’re functioning as a typical employee. Employers will often benefit from this kind of arrangement in that they wouldn’t have to pay National Insurance or other contributions, while the disguised employee wouldn’t have to pay as much tax.

The primary motive of IR35 is to determine a person’s employment status for tax purposes, and this ensures that everyone is paying the correct amount of tax and contributions.

One important point to note is that being IR35 compliant isn’t a fixed thing you achieve once and that’s it. In other words, the rules apply to each individual project you take on as a freelancer, and so it’s a constant battle to stay compliant. IR35 is also relevant to all industries and sectors, not just the creative ones (a common misconception).
 

If I work for an ex-employer, will I instantly be inside IR35?

Not necessarily. It all depends on your own unique situation. For example, are you in a position to set your own fee and choose when and where you work? If the answer is yes, then you’re more than likely fine.

If not, and the way you work is more like an employee in everything except for name, you could be heading into dangerous waters. Failing to comply with IR35 can result in financial penalties.

A basic rule of thumb is that if you’re being asked to do a 9-5 working exactly like you used to, you’re probably inside IR35. As a freelancer, you shouldn’t be treated like a regular employee.
 

Signs you’re inside IR35

There are additional signs to look out for:

  • Your role is indispensable, meaning you can’t easily be replaced by another freelancer
  • There’s a Mutuality of Obligation (any kind of obligation to give or accept work on either side, like there is between an employer and employee)
  • Your work isn’t contracted by the client company directly
  • You don’t invoice your client directly, and use an intermediary
  • You’re not responsible for your own Public Liability insurance or Professional Indemnity insurance (where applicable)

 

Who decides if a freelancer is inside IR35?

Since April 2021, it has been for the client to decide whether a freelancer they’re working with is inside IR35 or not, so long as that client is a medium-to-large-sized private company.

In this context the company is one which has more than 50 members of staff, or has annual sales in excess of £10.2 million.

An important reminder here for freelancers is that you can contest a client’s verdict on whether you’re operating inside or outside IR35.

If you undertake freelance work for a small private company, then the onus is on you to determine your own IR35 status. Use HMRC’s online CEST (Check Employment Status for Tax) tool and keep a record of the determination, and the information you use to get that result.
 

Can I take on my ex-employer’s clients?

This is something else you might be wondering about if you’re now out on your own as a freelancer. As an employee, you had access to important information regarding clients – phone numbers, email addresses, etc. – but are you now allowed to make use of that information, even though you don’t work for the company anymore? Would this be ethical? Or even legal?

‘Solicitation’ in the context of employment law occurs when an ex-employee intentionally “persuades” previous clients, suppliers, vendors, other employees, or other affiliates of their former employer to work with them and/or their new employer instead.

Whether an employee is soliciting or not is a fact-specific thing, and whether it is legal or not depends on the unique circumstances.

For example, if there’s some kind of enforceable ‘non-solicitation’ agreement or written contractual term prohibiting the employee from soliciting from their employer – even after the end of their employment contract – then the employer can choose to sue the employee to hold them accountable.

In general, then, you want to try and exercise discernment when undertaking freelance work for a former employer. IR35 status is quite a nebulous concept which can be difficult to fully comprehend – even for HMRC!

 
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.

Five Advantages of Hiring Freelancers on An Online Marketplace

Five Advantages of Hiring Freelancers on An Online Marketplace

In today’s increasingly digital and tech-savvy world, more and more companies are choosing to hire freelancers on an ad hoc basis instead of employing additional full-time staff to carry out the same tasks.

The nature of freelance work is that it’s flexible, meaning it affords businesses a certain level of freedom when it comes to making new hires. If it doesn’t quite work out with a particular freelancer, then the company simply won’t hire them again in the future. It’s also useful if you only need someone temporarily.

More broadly, hiring freelancers gives you access to a large range of skills, and this is where an online marketplace proves invaluable. So where do you start?
 

Access to a larger pool of available freelancers

While a lot of people like to bemoan the so-called digital age, it does mean we’re more connected than ever. Perhaps the most obvious advantage of using an online freelance marketplace is that it provides access to thousands – if not millions – of available freelancers looking for work.

This makes these online marketplaces ideal for quickly finding freelancers to complete one-time or rarely occurring tasks, and, again, you have the flexibility to trial as many people as you wish without being locked into anything long-term.

It usually won’t cost you, though some sites might charge a fee and/or charge the freelancer a percentage of their earnings.

Larger sites like Upwork and Guru will have the widest possible selection, though you might find there’s actually too much choice.
 

Access to a diverse range of talent

Not only do online freelance marketplaces give you access to many freelancers, but also to a huge range of valuable skills – skills which would probably be difficult for you to source locally, or even elsewhere online.

The majority of freelance marketplaces even allow you to filter your search for freelancers with the exact skills and experience level you need, meaning you can be sure you’ve got the right person for the job.
 

Ranking system

Another major advantage of hiring through an online marketplace is that it will most likely have some kind of internal ranking system. This is typically based on a number of key factors, including:

  • Feedback score
  • Reliability
  • Successful/timely task completion
  • Onsite tests
  • Money earned

Gone are the days of working your way through a mountain of CVs to try and (hopefully) find a half-decent candidate. With an online marketplace, the boring bit is taken care of, and you can focus on choosing the absolute best person for the role on offer.

You also don’t need to spend money on an agency which may not even do a good job.

After all, no one knows what you’re looking for better than you, and an online freelance marketplace enables you to take matters into your own hands and find reliable candidates with great reputations.
 

Simplified payment process

A common theme here is that online freelance marketplaces make things quick and easy, and the same is true when it comes to making payments.

There’s no need for an array of different payment methods (talk about confusing), as you can quickly and easily pay all of your freelancers via the online marketplace.

Most online marketplaces will allow you to bring over any existing freelancers you may use, so you won’t have the hassle of having to pay them the old way – or even potentially losing them for good in the process of switching to online.
 

Streamlined admin and communication

In the same way an online marketplace can simplify the payment process, it can help you manage both communication and work submission through its online workstreams and messaging systems. This can be helpful if you’re currently working through WhatsApp, and having to transfer work to a different device.

A lot of sites also feature inbuilt terms and conditions, which ensure you and your freelancers are on the same page when it comes to general expectations, as well as things like deadlines.

In addition to making your life as an employer easier, these terms give you a kind of safety net should anything go wrong, as you’ll have recourse to a third party (the marketplace itself).

 
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.

5 Reasons You’re Not Getting Repeat Business

5 Reasons You’re Not Getting Repeat Business

It’s one thing to get a customer through the door.

It’s another thing entirely to keep them inside – or coming back regularly.

Yes, customer retention really is the name of the game in a lot of ways, with it being more profitable than customer acquisition in the long run.

It ensures your income is stable and predictable, which obviously helps with things like paying bills on time. As a freelancer, this is huge.

What’s the secret, then? Why are you struggling to keep clients on board?

Here are five possible reasons:
 

Quality issues

You won’t like to admit it, but this is the most likely reason you’re unable to retain clients – especially if you’re someone who already has a roster of regulars.

This is because complacency can start to set in (whether you realise it or not).

It’s important to always remember that your current work’s quality determines whether you’ll get work in the future. For example, even if a particular project is a one-off, the client who commissioned it could end up recommending you to others in the future, provided the work meets a certain standard.

Now, this isn’t to say you have to burn yourself out or take on extra work free of charge, but do your utmost to ensure the service you provide is more than just passable. If you truly go above and beyond, clients will remember you – and will be much more likely to enlist your services again in the future.
 

Communication

The fact of the matter is that in today’s increasingly digital world, clients expect to be able to get hold of you quickly and easily, and there’s really no excuse if they can’t.

If you’re always unavailable or take an age to respond, it could leave clients feeling uncomfortable as they (understandably) want to know their money is being put to good use.

Make sure to reply to things like emails in a timely manner, as doing so demonstrates reliability and care. It’s also never been easier!

To help with this, though – and to stop you from being caught off guard – you can establish the terms of your working relationship upfront, including regular check-in times. You don’t have to ‘always on’.
 

Missing deadlines

This is just generally considered bad practice, showing that you’re unreliable and careless.

Don’t forget that clients often have deadlines of their own (even just internal ones), and you don’t want to be responsible for causing delays in their schedule.

If you think a piece of work might be late, the least you can do is contact the client to let them know, and this may ultimately help you save face. Better yet, try and avoid getting into this situation in the first place.

Technology can make your life easier and streamline your business: set deadline reminders and, if you aren’t already, start utilising some form of digital calendar or software like Trello.

It’s always better to under-promise and over deliver, so with this in mind, try to submit work early in order to give yourself a bit of breathing room.
 

Refusing revisions

Generally speaking, you should be open to making changes if a client isn’t fully satisfied or wants to have some input in the final product. After all, they’re the ones paying for it.

What this doesn’t mean, though, is that you should take on additional work for free. Any revision request should be reasonable and not an excuse to get out of paying.

The thing is, if you flat out refuse to make changes, the client will probably just go and find someone who will – so try and remain somewhat adaptable. It’s worth thinking about including your terms in the contract or work agreement.

Again, you can leverage modern tech to help speed up the process, with AI being a great tool for brainstorming, almost acting as a kind of sounding board for your ideas. You have to be fully transparent about this, though, and the work should ultimately be your own.
 

No follow up

A big mistake a lot of freelancers make is not being proactive in following up with clients. Waiting for clients to reach out when they need something is by no means guaranteed.

Believe it or not, some clients may not even realise that you’re available to work on a recurring basis – not unless you tell them. If you don’t, they’ll mentally file you away as the go-to for one-off work, which is fine, but – again – it’s more beneficial in the long run for you to have a steady stream of projects.

You could also consider offering some kind of special deal or discount for regular work as a way to entice people.

 
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.

Will the Fair Payment Code Stop Late Payments for Freelancers?

Will the Fair Payment Code Stop Late Payments for Freelancers?

As a self-employed freelancer, being paid on time is imperative if you’re to pay your bills when you’re supposed to. Of course, this doesn’t always happen – which can be frustrating to say the least.

How do you respond to a late payment, though? Is it just par for the course, or do you have the right to be annoyed?

Well, the government’s stance is pretty clear, with the Fair Payment Code having been introduced to try and combat this exact issue.
 

What is the Fair Payment Code?

Quite simply, it’s a new voluntary payment code introduced to replace the previous Prompt Payment Code.

Its primary aim is to tackle the late payment of businesses, helping to support SME’s cash flow and incentivise good practice. The scheme, which is open to businesses of any size, rewards participants for adopting fair payment practices, operating on a tiered system:

  • Bronze – for those paying at least 95% of all invoices within 60 days
  • Silver – for those paying at least 95% of all invoices within 60 days, including at least 95% of invoices to small businesses within 30 days
  • Gold – for those paying at least 95% of all invoices within 30 days

Each award lasts for two years, after which it must be reapplied for.

The medal system provides businesses with an easy way to demonstrate that they uphold good payment practices.
 

How can the Fair Payment Code help freelancers?

On the most basic level, it helps freelancers in that it improves their cash flow, while also raising the bar for what can be considered ‘good’ when it comes to paying suppliers promptly.

The new code also matches what IPSE thinks should be the ambition of every business, and the fact that the awards need to be renewed every two years further incentivises those who join to maintain their standards, with the tiered system leaving room for meaningful progression over time.
 

Is the Fair Payment Code a legal requirement for businesses?

No, the code is entirely voluntary, and this limits its overall effectiveness.

The attainment of being on the code is a nice pull factor (or carrot), but there really isn’t a push factor (or stick), like if participation was mandatory for certain larger businesses.

As it stands, an FPC award is simply a badge of honour, and nothing more.
 

Can I make complaints about businesses under the Fair Payment Code?

Yes, there’s a complaints procedure with the OSBC to report those businesses which are failing to meet the standards required under their awards or that are not following the code’s principles of being clear, fair, and collaborative.

This procedure is the main form of redress under the code, and if a business is found not to be living up to the standards represented by its award, it can be moved down to a lower tier – or even kicked off the scheme altogether.
 

How can businesses apply to be a part of the Fair Payment Code?

It should be noted that previous signatories to the Prompt Payment Code do not automatically receive an award, so a new individual application will be required.

An expression of interest form must first be submitted to the OSBC, who will then send out an application form, along with supporting guidance which sets out the necessary evidence that should accompany a business’s application.

This evidence includes proof of a UK registered address, the business’s standard contract terms, two references from suppliers, and evidence of payment performance.

Any level of award can be applied for, provided the accompanying evidence meets the criteria.

 
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What Seasonal Work Can Freelancers Pick Up During the Summer?

What Seasonal Work Can Freelancers Pick Up During the Summer?

It’s no secret that freelance work can be unpredictable, and especially if there are certain times of the year when your business tends to grind to a halt – like during the sleepy summer months.

Thankfully, seasonal work can be a great option, affording you the opportunity to earn additional income and gain experience during this dreaded ‘summer slowdown.’
 

What is seasonal work?

Before we get into it, what even is seasonal work? I’m glad you asked. Seasonal employees are basically short-term workers who come in and fulfil additional staffing needs during an organisation’s busiest months.

The main selling point is that the work is on a temporary basis, meaning there’s no long-term commitment and you can try new jobs to see if you enjoy them without having to dive in headfirst.

In terms of exactly when you can take up a seasonal role, this varies by both industry and individual operation.
 

What should I consider before taking on seasonal work as a freelancer?

The first thing to consider is how long the contract is, as having a seasonal job could eventually get in the way of your freelance obligations, which you may want to prioritise.

You should also take into account the type of work it is. This is because seasonal employment is a chance to upskill in something different and gain valuable experience which can be referenced on your CV in the future.

When it comes to the work itself, there’s likely to be a general lack of freedom or flexibility relative to freelance work (where you get to set your own schedule, for example). There also tends to be less pay than with a full-time job – close to minimum wage in some industries – and also fewer benefits, so you’ll want to consider whether or not it’s worth it to you.
 

Types of seasonal jobs for freelancers

  • Events/festivals – on an ad hoc basis – enables you to fill gaps in your income
  • Bartender/hospitality – may require more of a time commitment than events, but still not full-time
  • Retail – flexible hours, e.g. weekends only or 2/3 days per week
  • Barista – flexible working hours
  • Hotel staff – on an ad hoc basis or a few days per week, depending on contract
  • Dog walker – nice change from freelancing (not client-facing) and flexible hours

 

Should I look for employed or self-employed seasonal jobs?

The truth is it doesn’t really matter either way, so long as you’re comfortable doing your Self Assessment tax return (which you likely already are as a freelancer ).

That said, if you opt to take up a self-employed seasonal role, be sure to keep separate records and add a separate section to your Self Assessment. Also make sure you understand how this affects the way you pay tax.

As well as taking on seasonal work, you could also expand the freelance work you do to open up a wider client base. In today’s increasingly complex world, it’s good to have multiple strings to your bow.

 
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How to Survive the Summer Slowdown as a Freelancer

How to Survive the Summer Slowdown as a Freelancer

We all know freelance work can be unpredictable in nature (to say the least), so it’s fair to assume there’ll be times when there isn’t a whole lot of work to go around. Most notably during the summer months, when your clients are burning on a beach somewhere and you’re left waiting by the phone.

Fear not, though, as there are a number of things you can do to survive – and even thrive – during this so-called ‘summer slowdown’.
 

Run an expense forecast

Being financially prepared for an income drop is key.

Start by making a list of all the business and household expenses you will need to cover over the summer months. Your financial data from previous months and years can help, providing insights into your typical spending habits.

The next step is using this information to try and plan how you will pay your summer expenses if your income does slow down. It will also help you consider (or reconsider) any major purchases you might be planning.
 

Think about your summer schedule

If you know there’s a certain period (e.g. mid-August) that tends to be particularly slow for you in terms of work coming in, then why not align your own summer getaway with this?

You’ll get to enjoy some much-needed time off without worrying over an empty inbox. You also won’t technically be missing out on any income if you choose to go away during this time, as you don’t normally earn while on holiday.

Rest and relaxation are also vitally important, so there’s that, too.
 

Be clear about the time you’re taking off

Basically, just communicate your holiday plans consistently and often. If you don’t, you might receive work requests while you’re away, especially if you’re in a direct working relationship with a particular company.

Make sure to touch base upon your return, though, letting them know you’re back and available for new projects. (This also just gives you an excuse to reach out.)
 

Take the opportunity to market yourself

If, however, you’d rather keep working over the summer, you should start reaching out to your clients as early as possible and let them know about your continued availability. This will be very much appreciated by project managers in larger agencies, who will be glad to know they can reach out to you when many regular providers are out of the office.

You could also spend the time dedicated to building your online presence, in addition to generating leads. Now is the time to tinker and experiment with new services that complement your current ones. For example, if you’re a blog writer, you could consider offering a content calendar or SEO research.

There’s room for variability, too, as these new services can be add-ons or standalones; just play around and see what works.

They may bring in new clients (which is obviously the aim), but even if they fall short of that for whatever reason, they’ll still add value for existing ones and ultimately generate more revenue for your business.

So it’s kind of a no-brainer.
 

Consider seasonal work

While you may not have considered it, seasonal work can be a great option, affording you the opportunity to earn additional income during dry spells throughout the year – e.g. during summer.

The main selling point is that the work is on a temporary basis, meaning there’s no long-term commitment and you can try new jobs to see if you enjoy them without having to dive in headfirst.

It’s also a chance to upskill in something different and gain valuable experience which can be referenced on your CV, depending on what sort of seasonal work you pick up!

Seasonal employment also allows you to fill in any unemployment or missing income gaps you might have. This might be particularly useful if you’re worried about gaps in your National Insurance record affecting your entitlement to the State Pension in the future.

More broadly, though, you can forge connections within a new company – or even a new industry – and these can lead to future recommendations or job tips. (If you’re asked to do freelance work for an employer, just make sure you don’t fall inside IR35.)

Of course, there’s always the possibility of you being offered a full-time position after your seasonal contract ends.

 
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