As a freelancer, it’s important to understand that you operate in a different set of principles and responsibilities than your standard employee. This is true even if you do the majority or all of your work for a single client. As such, there’s a lot that new freelancers forget to do when they get started, but here, we’re going to look at some of the most common things that you should commit to your memory.
Marketing And Finding Work
If you want to secure clients and projects, then you have to promote and market yourself actively. Building a strong online presence, such as with your own website, social media platforms, and even on freelancing websites, is crucial, even if you’re currently getting all of your work from a single client. As such, if you lose that client, you’re able to rely on compelling portfolios and practised pitches to find new work to fill the gap. It’s always best to keep your outreach consistent so that you’re able to keep the work coming from different sources when you need to.
Managing And Paying Your Own Taxes
Unlike traditional employers, freelancers have to handle their tax affairs themselves, like a small business would. This means registering as self-employed, filing your tax return annually, as well as paying any National Insurance contributions yourself. Getting a good understanding of payments on account self assessment, as well as factors like expenses you can claim as a small business owner, ensures that you don’t fall behind. A common mistake for new freelancers is not to file their taxes until right up to the deadline, having to pay their whole tax bill at once rather than working at it throughout the year.
Setting Your Own Rates And Prices
As a freelancer, you are fully responsible for determining your own rates. You cannot expect your clients to do it for you in a way that ensures that you’re getting paid for the real value you bring or sticking to industry standards. If you have clients who do not pay you what you’re worth, then it’s important to either communicate with them and ask for more money to continue working with them or find new clients. This includes updating your prices each year to keep up with inflation.
Staying Legal And Compliant
If you’re with an employer, it’s their responsibility to ensure that you’re working in a way that fits with all the applicable laws and regulations. However, as a freelancer, it’s vital that you stay informed about your own obligations, including data protection laws like GDPR, industry-specific compliance, and ensuring you have the correct licences or insurance. If you work as a sole trader or a limited company, then your obligations may be different, but this doesn’t diminish your need to understand and work within them.
Working as a freelancer can be highly freeing and rewarding, not to mention flexible to your free time and needs. However, you also have to be ready for those extra responsibilities that come with it.
