Freelancing

1. Freelancing Neli Ban at Second Wednesday

2. Who we are • Specialist recruitment agency for creative industry in East Midlands • Permanent and freelance jobs • Over 30 years combined experience of working within creative agencies • Established for over 12 years

3. About me • Branding agency in London • Senior Project Manager at Linney Design • Digital and print projects • Ex-client, worst of a kind

4. Freelancing • Who is a freelancer? • Full-time or ad-hoc? • Why are you freelancing? • How do you get work? • Paid by hour or per project?

5. What’s in it for you? • Being your own boss • More money • Freedom • Variety

6. What’s in it for clients? • More flexible then permanent staff • Less commitment – easier to hire and fire • Extra skills • They can save money (no sick pay, holiday pay, redundancy pay and employer's national insurance)

7. What skills are best? • Some skills are not suitable for contracting (e.g. where the employer needs a stable workforce and the customer expects to deal with the same member of staff each time) • Being an artworker is often better than being an account manager (unless it’s per-project, longer term)

8. Disadvantages • Less security – freelancers are not protected in the same way as employees • Uncertainty – where is the next job coming from and when? • Hassle - there will be forms to fill in, rules to obey and accounts to keep • No pay when ill or on holiday

9. What makes a good freelancer? You think you are good at what you do, right? Being competent only accounts for 10% of the overall success of a freelance career The image that you convey as a professional actually counts more: 30% The remaining 60% is to do with exposure. This is where Kelso Jones comes in. Over 450 clients! Market knowledge, diary database

10. Successful freelancer • Knows what they want to achieve from being in business. Has thoroughly thought through the financial implications of going it alone • Is decisive. Now that you are your own boss it will be down to you to make the decisions to ensure your business is a success. Nobody else will ensure important forms are filled in or that clients are chased for overdue payments • Is self-motivated. If you have been used to having a boss breathing down your neck this may be harder than you think

11. Successful freelancer • Has the ability to go from site to site, adapting to the different conditions, the different tools, the different culture, and the different ways of working • Has the ability to get on with other people and make new working relationships easily • Listens and obeys! • Leaves personal opinion at the door • Is willing to brush up on existing skills

12. Reputation • The successful freelancer will have such a good reputation for his work, and have such a good rapport with his clients that his various contracts are renewed whenever possible • One of our freelancers has been working with the same company every week since June 09 and we have just confirmed his booking until next June

13. Self-employed/LTD/umbrella • A sole trader is defined as a business that is owned and controlled by one person who takes all the decisions, responsibility and profits from the business • The vast majority of contractors and freelancers work through their own limited company. A limited company is a distinct legal entity in its own right  • The freelancer is regarded as an employee of the Umbrella and their main purpose is to make life simple for freelancers while maximising their earnings

14. Self employed - advantages • Easy, register as self-employed with HM Revenue & Customs (HMRC) • Do monthly accounts, annual tax return. • You don't have the administrative or legal responsibilities of limited companies • Business expenses, and all losses, can be off-set against tax

15. Self employed - disadvantages • You are personally liable for any debts you incur in the running of your business, including law suits • If you win work via an agency, and the agency is responsible for remunerating you, they must by law pay you as an employee, which is not tax efficient • Clients can be wary of engaging freelancers who are sole traders because if you are 'deemed employed' they would suffer the financial consequences

16. Limited - advantages • Your company is a separate legal entity, so your personal assets, such as your home, are protected  • It can boost credibility amongst clients. • Business expenses and losses can be off-set against tax  • You can control how you combine salary and dividends to pay yourself. In many cases a limited company can be the most tax efficient

17. Limited - disadvantages • You have legal responsibilities as the director of a company  • There is more admin and higher cost in running the company due to obligations, such as submitting company accounts • You can still be 'deemed employed' if your relationship with your client resembles employer/employee, but your company will suffer the financial consequences

18. Umbrella - advantages • You are handing over the responsibilities, admin and hassle to an Umbrella company who bills your client through its own limited company structure and pays you a salary based on the work you do for your clients • The fact that you are paid a salary and effectively have employee status helps with proof of earnings for loans 

19. Umbrella - disadvantages • It’s not your own company and therefore it’s harder to build your own brand • It’s not tax efficient because all the money is paid as employment income • Some rogues out there – choose carefully

20. Thank you Any questions?