HOW TO START FREELANCING AND START EARNING MONEY?
When you decide to quit your job and become a freelancer, it’s an exciting and life-affirming moment. But once you’ve made that decision, the hard work starts. The process of becoming a freelancer isn’t that complicated, but there are a few important steps you can take (and, in some cases, should take) to make a move as easy and official as possible.
After you’ve decided to become a freelancer, there are a few things you need to do before you can start working. Here we will discuss how you can start as a freelancer easily.
What’s a Freelancer?
People who work for themselves in the UK make up a big part of the self-employed population. In a short amount of time, they do work for a wide range of clients. They do business in this manner because the conditions of each particular contract require it of them.
They usually have specialised knowledge that they can offer to customers, who like working with freelancers because it gives them more freedom. This gives them access to knowledge without forcing them to hire someone for a long time. This is especially helpful for new businesses and businesses that are just starting. These people who work on a project basis are called freelancers.
Freelancers often like having this level of freedom and flexibility. Since freelancers have to actively look for new clients and take care of business tasks like taxes and invoices, they should think of their jobs as those of business owners.
How to Get Your Freelance Job?
No matter how much experience or training you have in your chosen field, becoming a freelancer could be one of the most rewarding things you do in your life.
If you’re like the other small business owners, you probably care a lot about what you do. If you know how to promote your passion in the right way, you might be able to make a living out of it.
Set your rates
When you first start as a freelancer, one of the most important things you will do is decide how much you will charge for your services. Your profits could be based on a set rate per job or on how many jobs you do each day (or hour).
Do some preliminary research to get a sense of the going rate for the services you offer or your skills. This will always depend on how experienced you are, but you shouldn’t set prices so low that you can’t pay your monthly bills.
Build a good name for yourself
Remember how important it is to build a good reputation and get recommendations in this situation. You can earn respect and trust from reliable clients by giving them work that is well done, priced fairly, on time, and up to their standards.
The most important thing that will determine how successful you are as a freelancer is how you can make yourself indispensable to your clients.
Know the Business Structure
You must settle on a business structure before beginning your career as a freelancer. You will need to settle on a course of action concerning this matter before you can register with HMRC. Unless you’re going into business with someone else as a partner, you’ll likely run your business as either a sole proprietorship or a limited liability corporation.
Each one has good and bad points. Don’t decide what’s best for your business before you do some research on the subject. Talk to people you know in the field to find out what worked for them when they just started trading.
Advice from people already in business can be very helpful, especially if you find that different websites give you different information.
Work as Lone Proprietor
In general, sole proprietorships require less paperwork and give you more privacy than limited businesses. However, you shouldn’t underestimate how hard it will be to file your annual tax return. If you aren’t able to pay the tax, then you can apply for loans for people on benefits from direct lenders to clear them.
But they are responsible for any risks that come with it, including any debts or other financial obligations. This is because freelancers are not seen as completely separate from the businesses they run. Anyone who works as a sole proprietor must sign up as a freelancer with HMRC.
Working as a freelancer for a company with limited liability
Since limited corporations are treated as separate legal entities, your assets will not be at risk if your business gets into debt. Customers may think your business is more professional if you run it as a limited liability corporation. You are also eligible for 5k loans in the UK when you work for limited liability companies.
But setting up and running a limited corporation requires much more paperwork, laws, and rules than other types of businesses. You will have to sign up with Companies House, file a company tax return, and fill out your Self Assessment and the company’s return.
How to get clients as a freelancer?
To become a freelancer, you must learn how to market your skills to people who might hire you. Be honest with yourself about how much work a single person can do.
But before you take the plunge and become your own boss, you need to know who your first clients could be or where you can discover them. Only then can you make the decision to go it alone. This is especially important if you want to run a business that depends on people coming back to buy from you again and again.
Do some market research to learn as much as possible about your ideal customers to serve them better. Consider, for example:
You should ask a few local businesses who they hire to make their flyers, posters, or even websites if they don’t do it themselves. If they’re doing it themselves, you could offer a lower rate to get them to try you out and show them how good you are. You should do this if you want to learn how to become a freelance designer.
Research a company’s network to find out how likely it is that the company will put you in touch with its other contacts. Word of mouth, intelligent networking, and attending meetings are all things that can help move things in the right direction. Marketing also plays a part.
How to sign up for taxes as a freelancer?
If you sign up with HMRC as soon as you start doing business, understanding your first tax responsibilities will be much easier. This is an important step you need to take no matter how your business is set up, and it can be done almost entirely online.
A good piece of advice is to keep all of your early correspondence with HMRC in a paper folder as well as an easy-to-find digital email folder. When you pay your taxes throughout the year, you will need to give certain information and login codes. It might be hard to find everything when you need it.
Getting organised will pay off in the long run and keep you from waiting on hold for a long time with the HMRC helpdesk if you plan to go full force into freelancing.
One of the best ways to make money in the UK is to work as a freelancer. It lets you be on your own, gives you freedom, and could be a great way to make more money. There are so many different ways to work as a freelancer that you should be able to find something that fits your skills and interests. Also, it’s not hard to get started. You only need to explore around for projects that interest you, and after you’ve found one, you can get started on it!
Ailsa Adam is the Editor-in-Chief and former content head at Hugeloanlender. She has been a valuable member of the content strategy team since 2017 due to her abundant experience in the finance sector. Passionate about helping individuals navigate the world of loans and personal finance, she has dedicated herself to acquiring extensive knowledge on various financial products. Before her role at Hugeloanlender,
Ailsa worked as a seasoned journalist and writer, specialising in creating informative blogs and articles on diverse loan types. She is known for her meticulous research and commitment to delivering accurate and engaging content. She holds a degree in MBA Finance and has a keen interest in creative writing and art.