Learn how to start freelancing, choose your services, set your prices, handle HMRC and find your first clients.
The fact you're here reading this means you're thinking about taking the leap and this is a great start!
Maybe you've been doing your job for years and have started thinking, "I could probably do this myself." Maybe you're already picking up work on the side, or perhaps you've simply had enough of the 9–5 and want more control over what you work on, who you work with and how you spend your time.
Whatever has brought you here, freelancing can be a great way to build a career around your skills. But there is more to becoming a freelancer than setting up a LinkedIn profile and waiting for clients to appear.
You need to think about what you're offering, how you're going to price your work, where your clients will come from, how you'll manage your money and what you need to do to stay on the right side of HMRC.
So, let's break it down.
For a lot of people, yes. One of the biggest attractions of freelancing is freedom. You can choose which projects you take on, decide who you work with and have much more control over your working week. It can also give you the flexibility to work around family, travel or other commitments.
That doesn't mean freelancing is always easy. Your income isn't guaranteed, there will be quieter periods and you're responsible for everything from finding work to sending invoices and managing your own tax.
But for many people, that trade-off is worth it. You're building something that belongs to you. You also don't necessarily need to quit your job tomorrow. Many people start freelancing alongside their existing job, take on a few projects, build their confidence and eventually make the move into full-time freelancing.
Pretty much any skill that a business is willing to pay for can become a freelance service. Freelance marketplaces like Wootly have over 300 categories to sell services in.
There are thousands of freelancers working across creative industries such as graphic design, copywriting, video editing, photography, animation, 3D design and web design. There are also freelancers working in marketing, SEO, social media, paid advertising, technology, software development, UX/UI, cybersecurity, AI and automation.
Then there are business and professional services, including consulting, project management, virtual assistance, tutoring, translation, engineering and architecture.
You don't need to find the "perfect" freelance career. Start with something you're good at, enjoy doing and, most importantly, something businesses actually need.
Before worrying about your logo, website or business name, work out what you're actually selling.
Ask yourself what you're good at, what problems you can solve and who would be willing to pay you to solve them. You don't need to have your entire freelance career mapped out before you start, but having a clear idea of what you offer will make finding clients much easier.
For example, saying "I'm a designer" doesn't tell a potential client very much. Saying "I help e-commerce brands create product visuals and social content" immediately gives them a reason to speak to you.
The more clearly you can explain what you do, the easier it becomes for the right clients to find you.
Pricing is one of the hardest things to get right when you first start freelancing.
There isn't one magic freelance rate. What you charge will depend on your experience, your skills, the type of work you're doing, the client, the project and the value you're providing.
Some freelancers charge hourly rates, while others use day rates, fixed project prices or monthly retainers. The right approach depends on your industry and the type of work you provide.
One mistake new freelancers often make is trying to be the cheapest option. Your freelance rate isn't the same as an employee's salary. You're also paying for your own software, equipment, insurance, holidays, sick days and the time you spend finding your next project.
Work out what you actually need to earn and how much you need to get by each month, take your costs into account and build your pricing from there.
If you're freelancing in the UK, you'll need to think about how your business is structured.
Many freelancers start as sole traders because it can be a relatively straightforward way to begin. Others choose to set up a limited company, particularly as their business grows or where there are specific commercial or financial reasons for doing so.
These structures are very different, so don't choose one simply because another freelancer told you it's better. Look at your own circumstances and, if you're unsure, speak to an accountant or professional adviser.
The important thing is to understand what you're signing up for before you start taking on regular work.
This is probably the part nobody gets particularly excited about but Its also one of the parts you really don't want to ignore.
If you're self-employed in the UK, you'll need to understand your responsibilities to HM Revenue & Customs. You'll need to keep proper records of your income and business expenses and understand when you need to register for Self Assessment.
One useful number to know when you're starting out is £1,000. If your gross trading income is more than £1,000 in a tax year, you will generally need to tell HMRC and register for Self Assessment, depending on your circumstances.
Don't wait until the last minute to think about tax. Put money aside as you earn and keep your records organised from the beginning. A separate bank account for your freelance income can also make things much easier to manage.
And keep your receipts. Future you will be very grateful. This is not tax advice and you should always seek professional advice from a tax advisor before starting freelancing.
Before you start taking on serious amounts of work, think about what happens when something goes wrong.
What happens if a client wants five extra rounds of revisions? What happens if they cancel halfway through the project? When are you getting paid? Who owns the finished work? What happens if the project runs late?
These are things you want to agree before there is a problem.
You don't necessarily need a huge legal document for every small project, but you should have clear terms covering things such as payment, scope of work, deadlines, revisions, ownership, cancellations and responsibilities on both sides.
For larger or more complicated projects, getting professional legal advice can be worthwhile.
Insurance might not be the first thing on your mind when you start freelancing, but it's worth understanding what you may need.
Depending on the work you do, you might consider professional indemnity insurance, public liability insurance or cyber insurance. Some clients may also require specific insurance before they'll work with you.
The right cover depends entirely on your type of work and the risks involved, so don't simply buy the first policy you find. Make sure you understand what you're actually covered for.
You don't need an incredible website on day one, but you do need somewhere potential clients can understand who you are, what you do and what you've done before.
Your portfolio is particularly important if you're a creative freelancer. Show your best work and explain what you actually did. If you've worked on projects during your previous career, don't automatically assume they can't form part of your portfolio. Where you're allowed to show the work, your previous experience can be one of your biggest advantages when starting out.
And remember, your experience doesn't disappear just because you've started freelancing.
This is where freelancing really begins. You can have the best portfolio in the world, but if nobody knows you exist, it isn't going to pay the bills.
Start telling people what you're doing. Speak to people you've worked with before, post your work online, build relationships, go to events and reach out to businesses where you genuinely think you could help.
Don't underestimate your existing network either. Your first client could be someone you worked with five years ago, a previous colleague or a friend who knows someone looking for exactly what you offer.
Finding your first client can feel like the hardest part, but once you've got some work behind you, testimonials and referrals can start making the process much easier.
If all your income comes from one client, you're putting a lot of pressure on that relationship.
As your freelance business grows, try to build different sources of work. Repeat clients are valuable because you already have a relationship with them, while new clients keep your pipeline moving. Referrals can also become a huge source of work once you've built a good reputation.
Freelance marketplaces can also help by putting your services in front of businesses that are actively looking for freelancers.
The goal isn't to spend every waking hour searching for your next project. It's to build a system where opportunities can come from different places.
Starting a freelance business can feel like a lot when you look at everything at once. You don't need to have every single thing figured out before you begin.
Start with your skill. Work out who you can help. Decide what you're going to charge. Get your basic business and tax responsibilities sorted, build your portfolio and start putting yourself in front of potential clients.
Then keep going. That's one of the reasons we built Wootly.
Wootly is a UK-focused freelance marketplace built around the idea that finding freelance work shouldn't have to mean competing with thousands of people or paying just to apply for a project. Wootly manages every aspect of freelancing apart from your work. You decide when and how you work, Wootly finds your clients, manages invoices and payouts.
Freelancers on Wootly go through identity verification, helping us build a marketplace where clients know there's a real person behind the profile. We're also building Tyto SmartMatch, which looks beyond simply finding the "best freelancer" and instead aims to find the right freelancer for the specific client and project.
You don't pay to apply for projects, we don't charge fees on tips and there are no payout fees.
If you're thinking about starting freelancing, already freelance, or simply want to see what we're building, we'd love to have you involved.
