Why become a freelancer?
Posted on 6th August 2020
While working for a company can often provide you with job security, benefits, a guaranteed salary each month and an organised structure, it seems that more and more people are starting to open themselves up to freelance work, especially since the job market became so unsettled during the coronavirus pandemic.
If you have particular talents you wish to share or a general idea of the kind of industry you hope to freelance in, getting started and relying on yourself can be a fantastic idea. While freelancers are often self-employed, they rarely hold employees, and so a one-person operation is often how they make their trade.
While this can sound daunting, there are actually quite the list of perks a newbie freelancer or budding entrepreneur can enjoy as part of this decision-making process. But like most major career changes, often the most difficult step to take is the first one.
If you're considering moving into the freelance life, you likely understand and have accepted the risks involved, but to progress you need to know one thing - is this going to be worth it? Well, with the list of the following perks, we hope you can feel the rational answer is ‘absolutely'!
At your own convenience
Perhaps one of the benefits of freelance work is that for the most part, it may be at your own convenience. Of course, this means that you can choose to only wear pyjamas and work from a laptop in bed, but you may find it's easier to get into the right mindset by dressing 'for the occasion' - at least at first.
Also, you will likely have to schedule meetings with clients (even if that is only digitally for now), and meet deadlines you agree upon - so it isn't entirely at your convenience!
For the most part, freelancers are able to select their own hours. This means that if you have children or other responsibilities, the flexibility offered by this career status is unparalleled.
For some, working from home is a major convenience, completely wiping the need for a daily commute, which can take hours both ways for some people. Perhaps the best convenience or practical benefit is that of working in your own preferred style - and this is particularly true of the creative industries. For example, a freelance graphic designer can fully dedicate themselves to working with clients who love their style, rather than working in a company that requires a certain formula to be followed. Work will depend on your clients' needs of course, but this is altogether more freeing than anything else.
Tax implications
The tax benefits you can gain via freelance work can often be a fantastic new addition - and one many freelancers don't even know about until they start working for themselves. Not only may you be able to expense certain work-critical tools with the use of a good accountant (hint, hint!), but freelancers are often able to pay slightly less tax compared to those working as an employee.
However, you will be required to insure yourself and to provide your own salary and benefits, which can balance this requirement out. With a good accountant (us!), stringent care in your bookkeeping process will serve you well.
Next steps
While you can certainly experience more-than-justified pride for working as part of a team, or part of a larger company, there’s something to be said for going it alone and still making a success of things. If you're thinking about starting a business, why not get in touch with us? We would love to help you with your company set-up and accounting.
Written by
Nicola J Sorrell -
Effective Accounting
Founder | Xero Champion | IR35 Expert
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