I’ve been self-employed for a long time and I’ve been employed full-time during that time too. Yes, a bit of a weird one but I was making money on the side with my blog just a few years after from graduating from university. Going self-employed fully back in 2019 was a momentous moment that I’m forever grateful of being able to attain. It was all thanks to a client (with which I still work for) and the income I was generating from my blog, that helped me go self-employed.
Before going self-employed, my full-time job was bringing in around £26,000 and now with my blog and freelance writing combined, I believe I make around £40,000 before tax and national insurance. To effectively double my salary and be able to work from home, setting my own hours is wonderful. However, achieving a successful self-employed life isn’t easy by any means.
There are many people who asked for my advice on going self-employed and running a blog, but it’s something you need to do for your passion and not simply for earning money. That’s the case I feel with most self-employed careers. It’s what drives and motivates you to get up in the morning and ready to find work.
I thought it was high time I do a blog about self-employment and the basics that come with this style of working. It’s not for everyone but for those who want to take their work into their own hands, it can be a highly rewarding experience. To say I’ve successfully been self-employed for 4 years, endured a global pandemic, and came out of it the other side thriving, is one of the best achievements I’ve ever had.
*This is a collaborative post. Image Source
*This is a collaborative post. Is self-employment right for you?
First and most importantly foremost, is self-employment right for you? There are many benefits that come with self-employment that are worth mentioning:
- The ability to set your own hours.
- Flexible working around life.
- A potential unlimited income pot.
- Be your own boss.
- Creative freedom with work.
These are all great opportunities that come from self-employment and for me, they benefit me. While it has been challenging to be my own boss and set my own hours, I’ve always managed to make an earning every day of the working week since I went self-employed.
Granted, it was touch and go during the pandemic but once businesses realised they needed digital content for those who found themselves working from home, the work soon came back. And it came back in abundance. There’s also something about being your own boss that’s refreshing but again, it might not be for everyone.
However, self-employment isn’t for everyone. There’s no guarantee that work will come in one day to the next and there is often a constant need to go out and find work before the clients start coming to you. That inconsistency may not work for some.
What’s needed to go self-employed
What’s required to go self-employed anyway? Depending on the work and industry you’re diving into, it’s good to do further research. For me, the only self-employment life I know really is freelance writing. With that being said, becoming a self-employed worker is fairly similar from one industry to the next.
Self-employment will also be needed if starting up your own business. To be honest, I see self-employment and business owner as being the same thing. I like to think that I run a business but I’ve just not got a limited company to show UpYourVlog is a business online and earns money.
Here are a few things that will help you ease yourself into the self-employed world, especially if this is your first time doing it.
Registering as self-employed via HMRC
One of the first things you should do when it comes to going self-employed is register self-employment via HMRC. Even if you’ve not earnt anything yet, it’s good to set yourself up as a sole trader. This will trigger the requirement of submitting a tax return every year. Not registering as self-employed and then earning money is tax evasion if it’s not declared. That could land you in some pretty hot water, to say the least.
The process from what I can remember is very easy to do and won’t take long. It’s something to tick off the list of going self-employed and is likely the most important one to do. HMRC has set up a step-by-step page for registering as a sole trader.
Securing clients
The next important part of going self-employed is securing clients. Now as a self-employed pro, I would recommend you don’t quit the day job before you’ve secured at least one or two guaranteed clients that will provide work for the next couple of months. The reason for this is that it can help to ease into being self-employed, rather than starting day one with no clients. That, for me, would be a terrifying thought if going self-employed for the first time. However, now, with the experience I have, I think I could get work pretty quickly.
Starting out though, it’s much better to have some clients on your books before quitting any full-time job that’s providing a handsome income.
Setting up a portfolio
Going self-employed means finding ways of securing work, as mentioned above. To help with that, setting yourself up with a portfolio with existing work or any professional work done previously, is worth doing straight away. To be honest, I can’t really preach this point myself as I’ve yet to have a proper portfolio showcasing all my work. However, I’ve been fortunate enough not to need a portfolio yet as I’ve always had work available. The day that ceases is the day I’ll certainly be scrambling to get a portfolio together.
Depending on the type of self-employment you do, this portfolio may come in different formats. From a website to a social media platform showcasing the work, it’s useful to have a portfolio in place where possible.
Get an accountant
An accountant is GOLD. I have benefited from a good friend being my accountant for years now, well since I began my self-employment journey all the way back in 2014. It has helped greatly to have an accountant because all I’ve needed to do each year is put all my earnings in a spreadsheet, along with any expenses that I can claim towards tax, and sent that off to my accountant. He’s dealt with the rest.
I believe I get ‘mate’s rates’ but I believe accounting services for sole traders tend to charge between £25-£35 per hour and others will be more expensive depending on their knowledge and skill set.
Have an emergency fund
Finally, an emergency fund can be worth having in place and saving up for while still in full-time employment. For me, I was fortunate enough to have savings already and I’d added to these over the years of my full-time employment and what I was earning on the side up until I went fully self-employed in 2019.
Emergency funds are crucial in life anyway, especially as unexpected surprises can happen. When being self-employed, having an emergency fund can help fill those gaps during months when you may have very little, to no work at all. Thankfully, and touch wood as we Brits say, I’ve not had to use my emergency fund so far.
Going self-employed requires careful planning to help ensure the process goes smoothly. More importantly, it’s paramount to help survive and thrive as a self-employed individual in 2022 and beyond. Hopefully, these tips have given you plenty of guidance and advice needed to make self-employment successful.
*Disclaimer – This is a collaborative post. This post has been pre-written.
