Self-Employment Advice for Freelancers

You’ve just become self-employed, or you’re thinking about becoming a freelancer. It’s an exciting time and you’re bound to have plenty of questions.

We’ve put together our top self-employed advice, and a few of the most common questions and important answers you need to know.

Should I become a freelancer?

There are lots of reasons why you might start freelancing, so it’s a decision which really depends on you and your circumstances.

Typical advantages of self-employment	Potential disadvantages of self-employment
Flexibility to do the work you want, when you want No limit to your income Control over business decisions	Income can be irregular It’s a lot of work and responsibility No employee benefits (i.e. sick/holiday pay, pension)

If it’s something you’ve been thinking about, but you’re still not sure, there are a few key points to remember!

You don’t have to be a freelancer forever if it’s not for you
You might start your freelance journey as a side-hustle, testing the waters whilst still working for an employer

The freelance services you will offer

You might specialise in one very particular area, or provide a broader range of services – it’s entirely up to you. Focusing your efforts can make it easier to target potential customers but there aren’t any rules to say you can’t experiment.

Coming up with a business plan

Taking on the occasional spot of freelance work when it turns up might not need detailed planning, but a business plan can help if this is something you want to try long-term. You can use it to think about things like funding, marketing, setting out goals, and it can even help you spot future obstacles.

Deciding how much to charge

Working out what to charge clients trips up lots of freelancers, especially when you’re just starting out! The most obvious place to start is by making sure you can at least cover your own costs, but don’t underestimate your own value.

How do I register as self-employed?

If you’ve decided that freelance self-employment is for you, then the next step is to register with HMRC. Even if you’re only doing work on the side, you still need to let HMRC know if you’re earning more than the £1,000 Trading Allowance in a tax year.

The good news is that if your earnings from self-employment are below that threshold, you won’t need to tell anyone, or pay tax on it.

Read our guide to registering for self-employment

When do I need to become registered?

The official deadline to sign up is 5^th October in your second tax year of trading. A tax year starts 6^th April and runs until 5^th April, so if you start up in March 2025 then your first year is 2024/25, which ends in April 2025. You’ll need to make sure you’re registered by 5^th October 2025.

Ideally, you want to register as self-employed within three months of starting to do business. This will avoid any delays, and everything will be set up ready for when you need to start sending tax returns!

Do I need to have an accountant to register as a freelancer?

You don’t need to have an accountant to sign up with HMRC. You don’t even have to have one to submit tax returns. It’s entirely up to you! There are lots of options, so you might hire someone to help you get started, or just to submit your tax return, or for year-round help.