How Do I Start a Freelance Side Hustle?

How Do I Start a Freelance Side Hustle?

Considering recent challenges like the global pandemic and the rising cost of living, a lot of people are turning to side hustles to supplement their income.

If you’re thinking of starting up your own side gig, you’ll be joining one in five Brits that have done the same since March 2020. But where exactly do you start? We’ll give you some tips and tricks on how you can start a freelance side hustle.

 

What is a side hustle?

A side hustle is basically a hobby or side job you do part-time in addition to any other employment you may have. Lots of people start side hustles from their personal hobbies, for example, creating bespoke cakes or paintings, and they’re likely to have a small (but loyal) clientele.

The best thing about side hustles is the flexibility and freedom to earn your own income. As your own boss, you can choose how often you work, and the clients you want to work for. There are many stories of side hustles snowballing from a hobby to a full-time business – but again, it’s up to you if that’s what you want to strive for, you can go at your own pace.

 

How do I start a freelance side hustle?

If you have decided you want to start a side hustle, congrats! It’s an exciting prospect, but it can be daunting if you don’t know where to start. We have some tips to help you on your way.

 

1. Think about your passions and skills

Working full-time can really burn up all your energy, so you need something that can ignite your creative flame, even after working 40+ hours per week in employment.

Doing what you love will really reflect in your work, and it’ll feel less like a second job and more like a hobby.

 

2. Create a plan and set realistic goals

Setting huge targets, such as making several million pounds with just seven hours a week set aside for your new side hustle, while not impossible (we want to be positive here), is unrealistic.

Think about how much time you have, and how much money you can invest in your side hustle – and always give yourself time to find clients and grow. It doesn’t happen overnight.

 

3. Start networking

Networking is a powerful marketing tool. For example, if you’re a copywriter and you attend regular networking events or even get to know people on professional platforms such as LinkedIn, there’s always somebody who knows someone else that may need a copywriter for their business.

It’s the same with people who create incredible cakes – someone will always need one for a special occasion, and sending out email pitches to people who run corporate events or meeting up with other freelancers can really help you connect with others and reach the right audience.

 

4. Build your brand

Once you’ve decided on a business name, and what it is you offer, it’s time to think about how you raise your profile, such as by building a presence on social media. It can help to create a logo, and be consistent with your brand colours and fonts so customers recognise it’s you who is posting. Building a brand your clients trust and enjoy is crucial!

 

5. Look at your competitors

What are your competitors doing that you do better? Is there anything you can offer, that maybe they don’t? Sometimes finding a competitive edge or niche can really help you stand out amongst the crowd.

 

6. Set your prices

This can be difficult, especially if this is your first experience of working out how much to charge. Our advice would be don’t undersell yourself. It can be easy to sell your products or services for super low prices to compete with others, but the joy may quickly drain out of your new side-job if you take on a heap of work with next to no reward.

Look at what other people in your field are charging, and keep in mind your costs for the materials you need, and of course, your time.

 

Where can I advertise my side hustle business?

This depends on what your side hustle is. If you’re looking for a low-cost option to advertise your business, then most of the time social media is your friend.

If you run – let’s say – a kids’ teepee business, advertising your services in local Facebook groups, Instagram, and even Tik Tok while using the correct hashtags and keywords could attract parents looking for party ideas.

Paying for advertisements is always an option too, but if you do this make sure you budget yourself properly. Throwing all your savings on Instagram ads won’t work if they’re targeting the wrong audience. It can sometimes take a while to get it right.

If you’re getting crafty and selling personalised items, websites such as Etsy can highlight your brand and give you a platform that already has substantial traffic going to it. Though you’ll have platform fees to think about, they’re usually much cheaper than the cost of setting up your own website (and it’s usually much easier to create listings).

If you have a service to offer, then building a network on LinkedIn can be useful. You could also attend networking events to meet potential clients and get your name out there. Just keep in mind that information might make its way back to your employer though – which for freelancers with a service-based side hustle can sometimes be a consideration!

There are also lots of freelancing sites where you might be able to pick up work.

 

How do I create an invoice for my side hustle business?

It’s so exciting once you get your first client, but what happens when it’s time to collect your payment? Creating invoices is super simple, so the first rule is not to overthink it!

If you don’t use invoicing software to do the job for you, all it needs is the following:

  • Your business name, address, and phone number
  • Your client’s name, address, and phone number
  • A list of products sold, or services completed
  • The date the invoice was issued
  • A unique invoice number
  • The total amount
  • Instructions on how to pay

Your payment instructions can be as simple as, ‘Please make payment via bank transfer to [insert company name or your name], [sort code], [account number].

To personalise it, use your logo and brand colours! Read our article about successful invoicing to learn more.

 

Do I need a business account for my side hustle?

Nope! You’re under no legal obligation to open a business bank account for your side hustle, but if you ever need to register for Self Assessment, it may be better to keep your personal and business payments separate – especially when it comes to bookkeeping!

 

Do I have to pay taxes on my side hustle?

If you earn more than the £1,000 Trading Allowance in a tax year, you’ll need to register for Self Assessment with HMRC. How much tax you pay will depend on your overall income for the year.

 
Find more of the latest news and guidance for freelancers in our info hub.

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Can Freelancers Claim the Employment and Support Allowance?

Can Freelancers Claim the Employment and Support Allowance?

Employment and Support Allowance (ESA) is a type of financial benefit that might be available if you have ‘limited capacity to work’, such as a health condition or disability which inhibits your ability to work.

The allowance is designed to provide some financial security whilst you are unable to generate income. It’s particularly useful if you’re a self-employed freelancer and don’t have an employer to pay Statutory Sick Pay when you need time off sick.
 

What is the new-style Employment and Support Allowance (ESA)?

Most people who claim ESA now get what is called ‘new style ESA’, which replaced the previous income-based and contribution-based allowances.

It’s a contributory benefit, which means that you must have made sufficient National Insurance contributions or NI credits in last few years to receive it.

Although there are still some people receiving the old types of ESA, any new claims will now receive the new style Employment and Support Allowance which provides:

  • Financial support towards your living costs
  • Class 1 National Insurance credits, which can support your State Pension and other benefits.
  • Professional support if you’re able to return to work.

 

How much can I claim with the Employment and Support Allowance?

A new claim for the ESA can take several weeks, or even months, to be assessed, so you’ll normally be entitled to an ‘assessment rate’ of ESA until a decision has been made. The assessment rates of new style ESA are currently:

  • £67.20 per week for anybody under 25
  • £84.80 per week for anybody 25 and over

If you are deemed eligible following assessment, any money owed from the assessment period will be backdated.

Assessment categorises those who are eligible for ESA into two groups: ‘work-related’ (those who will likely be able to work again) and ‘support’ (those who aren’t likely to work in the future).

The new style ESA rates for these groups are currently:

  • Work-related: up to £84.80
  • Support: up to £128.85

Note: a private pension of more than £85 per week may impact how much you can receive in ESA.
 

Who is eligible for new style ESA?

Employment and Support Allowance is available to those who are employed, unemployed, or self-employed, although you will need to meet the criteria in order to qualify.

To be eligible to receive ESA, you must:

  • Have a disability or health condition that directly limits your capacity to work
  • Have worked as an employee or been self-employed
  • Be aged 16 or over
  • Be under the State Pension age (you can find out more about this on the GOV.UK website)
  • Live in England, Wales, or Scotland
  • Have paid sufficient National Insurance (NI) for the last 2-3 tax years (this also includes National Insurance credits)

Note: Even if you aren’t eligible for new style ESA right now, you may still be able to get National Insurance credits if you are unable to work. These NI credits could then help you qualify for ESA further down the line.

 

Can a freelancer claim Employment and Support Allowance?

Yes, freelancers are allowed to claim ESA providing you also meet the other conditions. It’s worth noting that if you have a full-time job as well as a self-employed side hustle (i.e., you freelance to supplement your PAYE salary), you can claim ESA but only for one type of income. You won’t be able to claim ESA on both employment and self-employment income at the same time.
 

How do I apply for ESA?

If you think you qualify for ESA and need support while you’re unable to work, you can apply via the GOV.UK website.

Make sure you’ve got the following to hand:

  • National Insurance number
  • Bank or building society account number and sort code (yours or somebody else’s if you don’t have your own)
  • Your doctor’s name, address and contact details
  • A note from your doctor (i.e., a ‘sick note’, ‘fit note’ or a ‘statement of fitness for work’)
  • Date your Statutory Sick Pay (SSP) is due to end (if applicable)

Once your application has been submitted, you will then be contacted by phone with next steps.
 

Can I still work whilst claiming ESA?

You can still work if you are claiming Employment and Support Allowance but only if you:

  • Work fewer than 16 hours per week.
  • Aren’t earning more than £167 a week.

Any hours you do work will need to be recorded with Jobcentre Plus.
 

Can you get ESA alongside other benefits?

You may be able to claim some benefits whilst claiming the Employment and Support Allowance, but others will not be available during the claim period.

In most cases, you are able to claim Personal Independent Payments (PIP) and Universal Credit at the same time as new style ESA.

Some people choose to get ESA instead of Universal Credit because the payments are more frequent (every 2 weeks rather than monthly), while others choose to claim both.

If you do choose to claim ESA and Universal Credit simultaneously (and are eligible to do so), your Universal Credit allowance will be reduced by whatever you receive through ESA.

You cannot normally claim ESA alongside Jobseekers Allowance (JSA), Income Support or Statutory Sick Pay (SSP). Of course, SSP only applies to freelancers that are also in employment and paid through the PAYE system.

If you are a freelancer who is also in employment, it’s worth noting that you can apply for new style ESA up to 3 months before your SSP is due to finish. ESA will simply replace your Statutory Sick Pay once that comes to an end.
 

What else can I do?

Being off sick is never easy, especially if your only source of income is the money you make working for yourself. The way that ESA is structured can mean that it’s not that useful for shorter absences, so lots of self-employed freelancers build potential absences into their pricing structure.

Consider what time off you might need over the year for much-needed holidays or for short-term sickness, and factor this in to your fees so that there’s more of a buffer if anything does happen.

Some freelancers also look at self-employed income insurance, to protect them in the event of longer-term issues.
 
Find more advice and guidance for freelancers in our info hub.

How Can AI Work for Freelancer Content Creators?

How Can AI Work for Freelancer Content Creators?

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

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

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

What is AI?

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

What do we use AI for?

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

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

What are the benefits of using AI as a freelancer?

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

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

Boost your efficiency

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

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

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

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

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

Improve your accuracy

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

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

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

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

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

Assist you with ideas

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

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

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

Keep you up-to-date

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

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

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

Will AI be the end of freelancing?

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

You can’t replicate human creativity

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

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

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

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

It lacks original thought

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

It has knowledge, not experience

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

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

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Can I Be An Influencer?

Can I Be An Influencer?

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

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

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

 

Is being an influencer a ‘real’ job?


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

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

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

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

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

 

The growing appetite for influencer marketing


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

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

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

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

 

What do you need to be an influencer?


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

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

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

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

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

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

 

The pros and cons of being an influencer


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

 

The benefits of being an influencer

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

 

Some things to consider

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

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

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What Freelance Jobs Can I Do?

What Freelance Jobs Can I Do?

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

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

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

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

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

What are common examples of freelance jobs?

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

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

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

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

 

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

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

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

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

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

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

What are the best paid freelance jobs in the UK?

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

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

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

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

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

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

Can I freelance while working full-time?

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

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

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

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