What is a Freelancer? Do they need to Register with HMRC?

Are you working 9 to 5, and sticking to this routine frustrates you as you work more and get less pay. Do you want to be your boss and be paid worth your work without any management pressure? Becoming a freelancer would be the best choice. Do you know what is a freelancer? If you are unaware of this term, we will explain it. Welcome to the entrepreneur world, where you chase your dreams of being your boss. So whether you want to test drive your favourite car or work for your career, freelancing is your way to go. However, every path you choose comes with hurdles and tax payments, and so does freelancing. In this brief guide, you will learn different ways how to become a freelancer and choose the right field. You will also learn whether you need to register with HMRC.

Use the table of contents to access specific sections with a single click.

• Who Exactly is a Freelancer?
• HMRC Rules: Do Freelancer Needs to Register?
• Step-by-Step Guide to Work as a Freelancer
• Find the Area You Want to Work-In
• Create Your Work Portfolio
• Invest in Good Hardware
• Calculate Your Day Income
• How to Increase Your Day Rate?
• Work With International Clients
• Need Assistance of Experts?

Who Exactly is a Freelancer?

A freelancer is a self-employed person who works for himself. A company does not employ them but works on a contract or project basis. This means they don’t have the usual employment contract with a company and are responsible for finding their projects. This can be done in various ways, from networking events to job posting platforms and sending out your CV. This guide will take you through different ways and help you find the best approach.

Different companies hire freelancers for their projects. However, the company is not responsible for paying freelancers’ taxes. Freelancers must pay their taxes, health insurance, and other expenses. There are different types of freelancers, such as designers, writers, programmers, translators, project designers, and many others.

HMRC Rules: Do Freelancer Needs to Register?

Freelancing is just a term for working yourself to earn your expenses. Whether you become your boss or work for yourself, you must register with HMRC. However, your tax submission will be calculated based on your money. So whether you consider a sole trader or a limited company for your tax submission, everything has pros and cons.

A freelancer sometimes has to face challenges like working on different projects simultaneously. Without organisational skills, keeping the workflow smooth and meeting deadlines is difficult.

Step-by-Step Guide to Work as a Freelancer

Being a freelancer comes with different responsibilities. There are many points to consider, such as how you deal with clients and manage your accounting. We have listed some areas where you can be the best freelancer.

Find the Area You Want to Work-In

The type of work you choose will depend upon your skill, talent, and experience. You must select a related field that fits your passion and motivates you to compete with others.

Freelancers are small service providers running their small businesses. Here are the details of common types of freelancing jobs

• Interior Designer
• Illustrator 
• Copywriter 
• Software Engineer
• Developer
• Project Manager
• Photographer
• Video Editor

There are many more fields than these enlisted and many good reasons to become freelancers. It’s something you love, allowing you to spend time with family, go on vacation, and have flexibility.
Gradually, you can reduce your working hours and set up your own business without worrying about money. Employees want a flexible working space if their contract allows them to work as they wish. So, if you own this flexibility, hate speaking on the telephone, or dressing up smart for a pitch, you must go beyond miles. As you are the single driving force running your business, you must put in extra effort.

Create Your Work Portfolio

Your online portfolio is a great way to share your projects and attract the best clients. You can create your own website to show your projects or use other platforms like Copifolio for writers and Adobe Portfolio for designers.

You should also beware of failing, as changing your position from employment to freelancing can affect you. You will get a lot of work with deadlines, so different tools can help you tackle your work easily.

Invest in Good Hardware

When you choose freelancing, you will have many expenses. You have to invest in good laptops and printers. You must also ensure every transaction is allocated in your accounting software. Lockhart Amin Accountants can help you keep track of your transactions and allocate everything in your accounting software.

Calculate Your Day Income

Working as a freelancer and charging a competitive rate for your work can be tricky. So, ask yourself how you want to appear as a good client. Stay undercharged, but getting low from your clients means working long hours to achieve your goals.

How to Increase Your Day Rate?

Being a freelancer keeps you relevant, as no boss or HR can pass judgment. You are the one who decides whether you want to raise your rate. So, see what your client offers and where you differ. Ask your existing clients to increase the rate so they can make their budget accordingly. For a good impression, explain to your clients what makes you unique from others to get such a handsome rate from them.

Work With International Clients

The best opportunity you can get as a freelancer is working with international clients. You may have to do extra work to impress them, but you can still earn money worth your work. Also, there can be a time zone difference, but it will impart a good impression on your client that you’re awake just because of your work. Be sure to stay active on emails and Skype to get instructions from your clients.

Need Assistance of Experts?

Lockhart Amin Accountant can be the perfect personal tax accounting partner for freelancers to manage all your accounting and bookkeeping needs. We give you access to professional and qualified accountants who can manage all your expenses, inform you about taxes and make you compliant with HMRC. So, get your accountancy services and enjoy your flexible working space without worrying about taxes.