Freelancers are a huge part of the UK’s self-employed workforce and are a great way to ensure that you do a job you love each day.
If you are a skilled builder, you may be considering going freelance to enjoy the freedom and flexibility that comes with being self-employed, and here are a few tips to ensure that you have a successful first year.
Choose A Business Structure
You will first need to consider the type of business that you will be running. There are two types of business structures that you can register with HMRC if you choose to work alone – a limited company or a sole trader.
As a limited company, your personal assets won’t be liable if your company goes into debt, which is a huge positive for any kind of business, as it means that the business is separate from the people who own and manage it.
Limited companies can also have more appeal to potential clients as your business looks more professional and will be registered with Companies House.
However, the accounting requirements are a lot more complex and time-consuming and you are likely to need an accountant to help with your taxes and paperwork. You will also need to be strict with your record-keeping and make the record available for public inspection at your registered office.
On the other hand, registering as a sole trader ensures maximum business privacy as you will not need to register with Companies House and allows flexibility in your business structure.
You will also be able to register your business for free and it is much easier to set up and manage. However, sole traders are liable for any business debt that may occur which can put personal assets at risk.
Tools
Of course, a key part of being a freelance builder is the tools that you will use for the job. You will need to procure these yourself, rather than having them supplied by the work site or clients.
You are likely to already have some tools if you have a passion for building and general DIY, but it is important to invest in high-quality tools if you want to provide a high-quality service.
While good-quality tools may seem like a big investment at the start, they will likely last much longer than their cheaper counterparts which will save you money in the long run.
As a freelancer, you will need to be able to transport these tools to wherever the job is located so a storage chest is likely to be a highly useful bit of kit for your inventory.
Consider Your Fees
One of the most important parts of becoming a freelancer is to work out how much you will charge for your services. There are a range of ways that you may wish to charge from a flat project-based rate to a daily or hourly rate, it is totally up to you.
You will want to do some basic local research to find out how much the average rate is for someone of your experience or skill set.
Charging very low amounts as an experienced builder won’t be a benefit to you, but overpricing your services will likely mean that you don’t receive positive feedback from clients or word-of-mouth referrals.
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