The Practical Guide to Limited Company Tax
If you have chosen to operate your business as a limited com...
By Jonathan London on 10th December 2014
Freelancing is great for various reasons and we are sure that many of you will agree with us on this one. Not only are you essentially your own boss, but freelancing offers you the chance to work flexibly and really hone in on your strongest skills while choosing which particular projects you wish to take on.
However, there can often be one downside to freelancing and it is one that actually comes from other people, rather than the work itself.
Here we have some of the most common misconceptions about freelancing that you are likely to hear.
This is a pretty harsh one but let’s not sugar coat things – when you tell your friends and family that you are a freelancer they may think that is a translation for I am going to be working from home so if you want to know what happens on Loose Women every day, I’m the one to ask….
It can be really frustrating when people have this idea in their head about you not actually working and it can be more so when it happens within your own home, as some freelancers can find their family members frustrated when they say that they won’t be available to help with chores during the day – after all you are at home aren’t you?
We won’t lie, it is really hard to shift this misconception as unless someone experiences it themselves they are going to believe that ‘real work’ consists of sitting in an office away from home.
As a freelancer, you must surely be constantly struggling to find work and therefore living each month by cheque to cheque right? Well, of course freelancing work isn’t always as secure and guaranteed as it is being employed by a company, and it can be especially difficult when you are first starting out and trying to find your feet within your own network.
This doesn’t, however, mean that you are struggling financially and it essentially all comes down to the actual market within which you work. As with any form of employment, certain sectors will pay more than others for the skills they need. You also can decide what rate you charge, so of course this misconception isn’t necessarily true.
Yes, this is very much in contrast to the previous misconception, but it is true that many people think that freelancers make a lot more money than most because of the fact that they can charge their own rate.
Again, everything really comes down to the type of freelancing work you do and the sector which you work within.
We are sure you have been there: you are telling your friend over a nice cold beer at the end of the day about how stressful your day has been and they respond with yes, well at least you don’t have a boss looking over your shoulder every ten minutes… or something equally as patronising. When this happens it really means that they think your work isn’t as stressful as theirs is.
This obviously is not true as freelancers have to organise clients single handedly and don’t have a manager or other employees to fall back on when any disputes are raised. There are also finance and tax issues that you need to keep on top of. Sometimes a subtle reminder about this can aid in crushing this common misconception.
Our guide to freelancer and contractor mortgages will help you understand some of the options available when it comes to buying a home
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