Freelancing Neli Ban at Second Wednesday

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

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

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?

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

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)

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)

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

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

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

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

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

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

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

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

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

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

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

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

Thank you Any questions?