Someone who is self-employed is someone who runs their own business. This would mean taking all responsibilities for any outcomes, whether successful or not. A person who is self-employed does not get paid through PAYE and would not have the same rights as an employee. This is common in trades such as Hair and Beauty, Construction and the Creative Arts.
As a Freelancer:
What is Freelance work?
Freelance work is a type of self-employment that is carried out on a flexible basis. Freelancers could work on big or small projects, both short-term and long-term – depending on what suits their skills, availability, and the employer’s needs.
How does it work?
Usually, employers will get the ball rolling by posting a job or project on a freelance website.
This allows freelancers to contact them, explaining the reasons their skills and abilities make them suitable for this particular role – also stating how much they would charge.
The employer is then able to choose from a number of proposals to find the best fit, discuss next steps, and come to a mutual agreement on how and when the work will be done. After it’s completed to the required standard, payment will be made.
Things to Consider:
Working as a Sole Trader:
You’re self-employed if you run your own business as an individual and work for yourself. This is also known as being a ‘sole trader’.
When you need to set up as a sole trader:
How to set up as a sole trader:
You must register for Self Assessment
Your Responsibilities as a sole trader:
Naming your business
You can trade under your own name, or you can choose another name for your business. You do not need to register your name. You must include your name and business name (if you have one) on official paperwork, for example invoices and letters.
Register with HMRC for the Construction Industry Scheme (CIS) if you’re working in the construction industry as a subcontractor or contractor.
As a Business Owner:
A business owner is an individual who owns a business entity in an attempt to profit from the successful operations of the company. Freelancers tend to have multiple projects or clients, whereas a self-employed business owner just focuses their attention entirely on the business and customers.
A small Business owner has the following responsibilities:
Creating a business plan, managing their staff, setting up business strategies, Establishing and reviewing budgets, creating marketing plans, providing customer service, hiring employees.
10 Pros and Cons of Being a Small Business Owner (With Video)
Here are some useful resources to help you research self-employment:
Flexibility and freedom and can work to your own timetable and manage your own workload.
Making a living from something you are passionate about.
Independence as you can choose what work you do, who you work with and when you work.
Financial benefit as you are not restricted to a salary, you can choose what you earn.
You can work around childcare can choose what times you work and work around childcare and school runs.
You can have a good variety of jobs to do.
You can create your own success.
Lack benefits of being employed such as paid holiday, paid sick leave, parental and maternity leave and pension.
Unpredictable income as it can be irregular and complex.
Lack of structure as you can be working irregular and unsociable hours.
Less job security including fluctuation of workloads and income.
Financial instability as you are responsible for your own income and can incurring costs and retrieving money from clients.