Latest news with #selfemployment
Daily Mail
28-07-2025
- Business
- Daily Mail
Will I lose the Winter Fuel Payment if I make a pension withdrawal to replace my 'clapped out' car?
I read your article about the Winter Fuel Payment and the HMRC limit of £35,000. I have a small private pension plus my state pension. I now need to draw a lump sum of money from my pension pot, which I built up for nine years during self employment, to replace my 'clapped out' car. This could take me over the £35,000 income for the year. Do I now need to return my Winter Fuel Payment? We can't really afford to take out a loan for the car, nor would we want to with sufficient funds sitting in my pension pot. Am I now to be punished once again for putting things in place for my old age? Steve Webb replies: If your total income from your state pension, regular private pensions and lump sum pension withdrawal takes you over the £35,000 limit, then yes, your extra tax bill next year will wipe out the value of your share of this year's Winter Fuel Payment. However, it is worth remembering that, assuming you and your partner are under 80 and not receiving benefits, you are probably each receiving an equal share of the total £200 Winter Fuel Payment. It is only your share (typically £100) which is at stake if your income goes above £35,000, rather than the total household payment. There are some further aspects of this which might be worth bearing in mind. The first is that what affects your WFP is your individual income, not the combined income of you and your spouse or partner. This means that if your partner had access to a pension pot or other savings and could do this without taking their income above the £35,000 limit, then the car could be purchased without affecting the payment at all. Alternatively, if your partner was able to make some contribution to the car, but not the full amount, another option would be for you to chip in by taking a smaller pension withdrawal to 'mop up' any spare income between your current annual figure and the £35,000 limit. You could do this without affecting your WFP entitlement. Depending on the state of your 'clapped out' car, another angle to think about is whether you could hold on until the end of this tax year. If so, you could take your withdrawal in two lumps, one before 6 April 2026 and one afterwards. Provided each individual lump kept you within the limit, then your WFP would be unaffected. How do you send back a Winter Fuel Payment? Turning now to your comment about 'returning' your WFP, it's worth being clear how the process will work from this winter onwards. Under the new system, everyone who is over state pension age should be paid a WFP in full, regardless of their income. HMRC will then identify at the end of the year those individuals who had income over £35,000 and will add an amount to their tax bill to offset the WFP they received the previous winter. So you are not exactly 'returning' the WFP, you are simply facing a slightly higher tax bill next year. If you prefer, the Government has said that it will be possible, in principle, to opt out of the WFP system. But in your situation, where your income is only temporarily over the limit for one year, it's hard to see what you would gain by doing this. It would probably be far simpler to simply get a WFP, put it in the bank and earn a bit of interest, and then use it to help pay your increased tax bill for one year. If you are determined to avoid this situation you could in principle opt out this year, and then (presumably) opt in again the following year, but we have yet to see any details as to how all of this will work and how bureaucratic the whole process will be. Ask Steve Webb a pension question Former pensions minister Steve Webb is This Is Money's agony uncle. He is ready to answer your questions, whether you are still saving, in the process of stopping work, or juggling your finances in retirement. Steve left the Department for Work and Pensions after the May 2015 election. He is now a partner at actuary and consulting firm Lane Clark & Peacock. If you would like to ask Steve a question about pensions, please email him at pensionquestions@ Steve will do his best to reply to your message in a forthcoming column, but he won't be able to answer everyone or correspond privately with readers. Nothing in his replies constitutes regulated financial advice. Published questions are sometimes edited for brevity or other reasons. Please include a daytime contact number with your message - this will be kept confidential and not used for marketing purposes. If Steve is unable to answer your question, you can also contact MoneyHelper, a Government-backed organisation which gives free assistance on pensions to the public. It can be found here and its number is 0800 011 3797.
CNET
24-07-2025
- Business
- CNET
How to Succeed as a Freelancer and Turn a Side Hustle into a Full-Time Career
Jeffrey Hazelwood/CNET Jamie Brindle has been freelancing for 16 years and is on a mission to "demystify" the freelance world. In 2020, amid a shaky job market and widespread rejection of corporate hustle culture, he started helping beginner freelancers become their own bosses. The expansion of remote work, advances in AI and the growth of influencer platforms have all led to a kind of self-employment boom. As Gen Zers and millennials find new ways to upgrade their skills in a flexible work setting, the traditional 9-to-5 has become less inviting -- and less reliable. "People are finally coming over to my side and agreeing that building something for yourself is the safe option now," Brindle told me. Financial instability is not a minor factor. Plenty of full-time professionals rely on part-time side hustles and gig work to compensate for stagnant wages and the high cost of living. Working as an independent contractor can feel like a life raft during tough economic times. Whether by choice or necessity, millions of people are turning to freelancing as a long-term business strategy. "If you lose a client, you're inconvenienced," said Brindle. "If you lose your job, you're unemployed." The term "freelancer" often brings to mind ride-share drivers or creators working from home. Yet the self-employed span nearly every industry and skill level, from entry-level musicians to highly specialized brand consultants. In my research, I discovered a world of artists, technicians, developers, strategists, writers, coaches and tradespeople, each carving their own path. In 2027, freelancers are projected to make up more than half the US workforce, according to Statista. A majority freelance workforce has numerous political and economic implications for future generations. What does a country of nearly 90 million independent contractors look like? Better yet, should you follow the trend? Whether you've recently lost your job or you're following your passion, this article focuses on tips to get started building your own business. Shaped by real-life insights from seasoned freelancers, this practical guide can help you thrive in this expanding work model. How to move from full-time employment to freelance work Freelancing is not always a choice. If you've recently been laid off or left your job out of necessity, you won't necessarily have the luxury to plan for self-employment. But in today's competitive job market, setting up your own gig could be the easiest way to guarantee some income. One of the biggest hurdles is getting started. First, identify your strengths and narrow in on what you're offering. Then tell everyone you're available for work. "If you create a persona for yourself, market yourself and your business, and create that reputation, that's what eventually will bring people to you," said Jeanette Smith, a freelance content writer and editor. Over the years, Smith has cultivated an impressive following, with 11,000 connections on LinkedIn. When making the leap from a conventional employee to an independent contractor, don't wipe your slate clean. Use the experience and connections you've built over the years to devise a business plan and reach out to prospective clients. "Everything that you've done in your 9-to-5 is a launch pad for your freelance work, your network, your skills," said Tia Meyers, CEO and founder of Freelancing Females, the world's largest community of women in the freelancing field. If you need guidance, the Freelancers Union, a nonprofit with over 500,000 members, can provide advocacy, education and access to benefits. Executive director Rafael Espinal said the organization can connect you to fellow freelancers and provide assistance for everything from creating contracts to setting rates. 1️⃣ Understand the business If you're committing to freelance work full time, you might need to formalize your business by registering with the state. Setting up a separate legal structure will give you liability protection, tax flexibility and the ability to secure loans. In Smith's case, she created an LLC (a limited liability corporation) that allowed her to open a business bank account and keep her personal and business finances separate. Alternatively, anyone who is freelancing for occasional side income can be classified as a sole proprietorship. If you don't want to incorporate or form a legal entity to run your business right away, you'll report your income on your personal tax return. "Just be aware that as a 1099 employee (freelancer), no taxes are being withheld," said Smith. "It is your responsibility to estimate your taxes due and pay them quarterly." Ultimately, how you decide to structure your business entity depends on your goals as a freelancer and what legal and tax benefits you're looking for. 2️⃣ Build your reputation A freelance business doesn't grow magically. Once you begin taking on projects, it takes time to find your footing. Depending on the industry and your persistence, Meyers told me to expect anywhere from three months to 12 months to get consistent income and inquiries from clients. To build your reputation, Brindle recommends boosting your visibility on the professional networking platform LinkedIn, which he calls a "24-hour business conference." But don't treat the site like a portfolio or an online resume. Instead, use social media for discussion and commentary, where you can make ongoing contributions and maintain engagement. Brindle said that sharing posts about what your clients find valuable will favor the algorithm, which is designed to keep users on the platform as long as possible. 3️⃣ Find your network No one will know you're looking for work unless you tell them. "Go to your past co-workers, send notes to friends, find a collective of people," said Meyers. Communities like Freelancing Females, the Freelancers Union and local job boards advertise openings, help you collaborate on work and share client bases. Creating a profile on talent marketplaces like Fiverr and Upwork can also do some of the lifting. According to Nikhil Purwaha, senior director of project management at Upwork, the site has thousands of job posts for freelancers across more than 125 categories, from marketing to software development to customer service. "We recommend creating a profile that highlights your core strengths, then browsing open projects that match your background," Purwaha told me in an email. "Clients are often more interested in outcomes than credentials, and many are open to giving newer freelancers a shot if they show commitment, skill and professionalism." 4️⃣ Grow your client base To generate a loyal clientele, your outreach should be ongoing and diverse, ranging from in-person referrals and professional associations to smaller contract agencies. Once you start completing assignments and proving your reliability, clients are likely to come back to you. "The trust factor is the most important thing to build," said Smith. "If clients like you, they will eventually trust you. And people tend to only buy from people they trust." Though Fiverr and Upwork can help you get started, many independent contractors don't recommend relying on them as the foundation of your business. Sites like these have "pay to play" elements or take a percentage of each transaction as commission. As a result, online gig-work marketplaces are often saturated with low-paying clientele. "They can create a race-to-the-bottom mentality, where freelancers are outbidding each other to secure work," said Espinal. According to Brindle, the majority of your clients should come from your own networking and promotion, and only 10-15% from freelancer platforms. 5️⃣ Market your niche Marketing involves educating prospective clients about your unique service and demonstrating your brand's niche -- a way of planting the flag as a category leader. "If a freelancer comes to me and says, 'I don't know how to get leads,' 99.9% of the time it's because they don't have a niche," Brindle said. For example, if you're trying to generate clients as a personal fitness trainer, you'll stand out if you specialize in something more exclusive, like helping executive women over 50 reach their strength-training goals. "Specificity is your ally," he said. Once you've found your niche, focus on the deliverables, not the skill itself. What will the results be? What should your clients expect? What problem will you solve? Translate everything to the language of ROI to guarantee a solid return on investment, said Brindle. 6️⃣ Determine your price Before you set a price for your services, create a budget sheet of your business costs and work backwards. Independent contractors should put aside 40% of their take-home earnings to cover taxes and professional expenses, according to Espinal. "Consult with other freelancers in your industry and see what they charge," said Smith. Then figure out your "happy price" by considering all the project details -- length, time commitment, resource costs -- to set a figure that feels fair for the value you're offering. Though you might not have a set price for your services out of the gate, have a goal of what you'd like to be charging in a year or two. Ideally, according to Brindle, you're pricing in a way where you could technically subcontract every job -- i.e., hiring another freelancer to do the work -- and still meet your annual revenue goals. Though a lot of freelancers advertise hourly rates, consider charging based on the project or the solution you're offering, not the time it takes. Brindle says not to allow the client to set a ballpark figure. "You're the expert, so you should be the one to present a budget to them," Brindle said. The benefits of freelance work Becoming a business owner comes with different responsibilities, new types of management and increased flexibility. While you might start off working more hours than you had in the past, you'll eventually familiarize yourself with pacing, tracking your hours and working when you're most productive. You also aren't limited by an income ceiling, so you can always make more money by taking on more projects. "The beauty of freelancing is your choice to work when you want, and to work with the clients you actually want to work with," said Meyers. Whereas traditional employment locks you into the same focus area, freelancing allows you to take your skills to the next level or build something unique based on what you love to do. In today's uncertain job market, being an independent contractor can give you increased freedom, according to Espinal. "In a traditional 9-to-5, you don't have control over whether or not you go to work the next day. You have an employer who makes that decision for you," he said. Top advantages to freelance work: ☑️ Set your own schedule ☑️ Choose your own clients ☑️ No salary ceiling ☑️ Flexibility to pivot The downside of freelance work Not everyone is comfortable with marketing their business or managing their time and finances. As a freelancer, you'll have to be willing to sell your services and get used to keeping receipts for expenses, paying quarterly taxes and reconciling your finances monthly. "I recommend getting a bookkeeper if you can, because there are just so many rules that change every single year," said Meyers. If you can't afford to hire someone, try different platforms or accounting software such as QuickBooks and HoneyBook. One major disadvantage to freelance work is the lack of benefits. You won't get paid time off, a retirement account match, short-term disability, health insurance or anything else that typically comes with an employment compensation package. You'll also need to be prepared to give up a steady paycheck and get used to a more erratic income stream. "Payments from clients aren't always prompt, and sometimes you have to chase them down," said Smith. In some cases, clients could refuse to pay entirely, which makes it even more important to have a written agreement when taking on projects. According to Espinal, around 75% of freelancers accept work without a contract, leaving them vulnerable to noncompliant clients. If you go into freelance work to fulfill your passion on a full-time basis, be careful you're not living and breathing work. An otherwise fun hobby, like baking, could become particularly grueling if you're trying to transform your personal kitchen into a cookie factory. Staying motivated requires being cognizant of work-life balance to avoid burnout. Main disadvantages of freelance work: ☑️ Inconsistent payments from clients ☑️ No included insurance or retirement benefits ☑️ Ongoing expenses and taxes ☑️ Fatigue from not setting boundaries Final tips for new freelancers ➡ Be bold When starting out, you'll face a lot of rejection and ghosting. "But you have to keep believing that the next opportunity is going to be the big break," said Smith. Don't be ashamed to market your business however you need to, she added. Remember that a lot of your clients will hire you not only because of your skills, but also your character. "Don't be afraid to share your personality," said Meyers. ➡ Get a website A business website shows off your portfolio and is great for search results. It also demonstrates that you're human, Smith told me. If you don't have a website, make sure you have some type of web presence (substack, landing page, social media), so clients can see your work and contact you easily. Once you have a web presence, don't force your clients to scroll through multiple pages to know what you're selling. Meyers recommends creating clear packages and service offerings. ➡ Prepare the financials First, prioritize building up an emergency fund to cover at least six months of expenses in case of unexpected circumstances. Factor in all your business overhead expenses ahead of time: software, equipment, gas, meals. Study the tax rules to know exactly what you can claim as a deduction. You'll also want to make sure you can afford to pay health insurance out of pocket and contribute to a retirement fund. If you're interested in other insurance offerings besides health insurance, Espinal said the Freelancers Union provides some benefits, including disability, liability, and life insurance, to members at a fraction of the cost.
CNET
19-07-2025
- Business
- CNET
The Art of Freelancing Like a Boss, According to the Folks Who Do It
Jeffrey Hazelwood/CNET Jamie Brindle has been freelancing for 16 years and is on a mission to "demystify" the freelance world. In 2020, amid a shaky job market and widespread rejection of corporate hustle culture, he started helping beginner freelancers become their own bosses. The expansion of remote work, advances in AI and the growth of influencer platforms have all led to a kind of self-employment boom. As Gen Zers and millennials find new ways to upgrade their skills in a flexible work setting, the traditional 9-to-5 has become less inviting -- and less reliable. "People are finally coming over to my side and agreeing that building something for yourself is the safe option now," Brindle told me. Financial instability is not a minor factor. Plenty of full-time professionals rely on part-time side hustles and gig work to compensate for stagnant wages and the high cost of living. Working as an independent contractor can feel like a life raft during tough economic times. Whether by choice or necessity, millions of people are turning to freelancing as a long-term business strategy. "If you lose a client, you're inconvenienced," said Brindle. "If you lose your job, you're unemployed." The term "freelancer" often brings to mind ride-share drivers or creators working from home. Yet the self-employed span nearly every industry and skill level, from entry-level musicians to highly specialized brand consultants. In my research, I discovered a world of artists, technicians, developers, strategists, writers, coaches and tradespeople, each carving their own path. In 2027, freelancers are projected to make up more than half the US workforce, according to Statista. A majority freelance workforce has numerous political and economic implications for future generations. What does a country of nearly 90 million independent contractors look like? Better yet, should you follow the trend? Whether you've recently lost your job or you're following your passion, this article focuses on tips to get started building your own business. Shaped by real-life insights from seasoned freelancers, this practical guide can help you thrive in this expanding work model. How to move from full-time employment to freelance work Freelancing is not always a choice. If you've recently been laid off or left your job out of necessity, you won't necessarily have the luxury to plan for self-employment. But in today's competitive job market, setting up your own gig could be the easiest way to guarantee some income. One of the biggest hurdles is getting started. First, identify your strengths and narrow in on what you're offering. Then tell everyone you're available for work. "If you create a persona for yourself, market yourself and your business, and create that reputation, that's what eventually will bring people to you," said Jeannette Smith, a freelance content writer and editor. Over the years, Smith has cultivated an impressive following, with 11,000 connections on LinkedIn. When making the leap from a conventional employee to an independent contractor, don't wipe your slate clean. Use the experience and connections you've built over the years to devise a business plan and reach out to prospective clients. "Everything that you've done in your 9-to-5 is a launch pad for your freelance work, your network, your skills," said Tia Meyers, CEO and founder of Freelancing Females, the world's largest community of women in the freelancing field. If you need guidance, the Freelancers Union, a nonprofit with over 500,000 members, can provide advocacy, education and access to benefits. Executive director Rafael Espinal said the organization can connect you to fellow freelancers and provide assistance for everything from creating contracts to setting rates. 1️⃣ Understand the business If you're committing to freelance work full time, you might need to formalize your business by registering with the state. Setting up a separate legal structure will give you liability protection, tax flexibility and the ability to secure loans. In Smith's case, she created an LLC (a limited liability corporation) that allowed her to open a business bank account and keep her personal and business finances separate. Alternatively, anyone who is freelancing for occasional side income can be classified as a sole proprietorship. If you don't want to incorporate or form a legal entity to run your business right away, you'll report your income on your personal tax return. "Just be aware that as a 1099 employee (freelancer), no taxes are being withheld," said Smith. "It is your responsibility to estimate your taxes due and pay them quarterly." Ultimately, how you decide to structure your business entity depends on your goals as a freelancer and what legal and tax benefits you're looking for. 2️⃣ Build your reputation A freelance business doesn't grow magically. Once you begin taking on projects, it takes time to find your footing. Depending on the industry and your persistence, Meyers told me to expect anywhere from three months to 12 months to get consistent income and inquiries from clients. To build your reputation, Brindle recommends boosting your visibility on the professional networking platform LinkedIn, which he calls a "24-hour business conference." But don't treat the site like a portfolio or an online resume. Instead, use social media for discussion and commentary, where you can make ongoing contributions and maintain engagement. Brindle said that sharing posts about what your clients find valuable will favor the algorithm, which is designed to keep users on the platform as long as possible. 3️⃣ Find your network No one will know you're looking for work unless you tell them. "Go to your past co-workers, send notes to friends, find a collective of people," said Meyer-Grado. Communities like Freelancing Females, the Freelancers Union and local job boards advertise openings, help you collaborate on work and share client bases. Creating a profile on talent marketplaces like Fiverr and Upwork can also do some of the lifting. According to Nikhil Purwaha, senior director of project management at Upwork, the site has thousands of job posts for freelancers across more than 125 categories, from marketing to software development to customer service. "We recommend creating a profile that highlights your core strengths, then browsing open projects that match your background," Purwaha told me in an email. "Clients are often more interested in outcomes than credentials, and many are open to giving newer freelancers a shot if they show commitment, skill and professionalism." 4️⃣ Grow your client base To generate a loyal clientele, your outreach should be ongoing and diverse, ranging from in-person referrals and professional associations to smaller contract agencies. Once you start completing assignments and proving your reliability, clients are likely to come back to you. "The trust factor is the most important thing to build," said Smith. "If clients like you, they will eventually trust you. And people tend to only buy from people they trust." Though Fiverr and Upwork can help you get started, many independent contractors don't recommend relying on them as the foundation of your business. Sites like these have "pay to play" elements or take a percentage of each transaction as commission. As a result, online gig-work marketplaces are often saturated with low-paying clientele. "They can create a race-to-the-bottom mentality, where freelancers are outbidding each other to secure work," said Espinal. According to Brindle, the majority of your clients should come from your own networking and promotion, and only 10-15% from freelancer platforms. 5️⃣ Market your niche Marketing involves educating prospective clients about your unique service and demonstrating your brand's niche -- a way of planting the flag as a category leader. "If a freelancer comes to me and says, 'I don't know how to get leads,' 99.9% of the time it's because they don't have a niche," Brindle said. For example, if you're trying to generate clients as a personal fitness trainer, you'll stand out if you specialize in something more exclusive, like helping executive women over 50 reach their strength-training goals. "Specificity is your ally," he said. Once you've found your niche, focus on the deliverables, not the skill itself. What will the results be? What should your clients expect? What problem will you solve? Translate everything to the language of ROI to guarantee a solid return on investment, said Brindle. 6️⃣ Determine your price Before you set a price for your services, create a budget sheet of your business costs and work backwards. Independent contractors should put aside 40% of their take-home earnings to cover taxes and professional expenses, according to Espinal. "Consult with other freelancers in your industry and see what they charge," said Smith. Then figure out your "happy price" by considering all the project details -- length, time commitment, resource costs -- to set a figure that feels fair for the value you're offering. Though you might not have a set price for your services out of the gate, have a goal of what you'd like to be charging in a year or two. Ideally, according to Brindle, you're pricing in a way where you could technically subcontract every job -- i.e., hiring another freelancer to do the work -- and still meet your annual revenue goals. Though a lot of freelancers advertise hourly rates, consider charging based on the project or the solution you're offering, not the time it takes. Brindle says not to allow the client to set a ballpark figure. "You're the expert, so you should be the one to present a budget to them," Brindle said. The benefits of freelance work Becoming a business owner comes with different responsibilities, new types of management and increased flexibility. While you might start off working more hours than you had in the past, you'll eventually familiarize yourself with pacing, tracking your hours and working when you're most productive. You also aren't limited by an income ceiling, so you can always make more money by taking on more projects. "The beauty of freelancing is your choice to work when you want, and to work with the clients you actually want to work with," said Meyers. Whereas traditional employment locks you into the same focus area, freelancing allows you to take your skills to the next level or build something unique based on what you love to do. In today's uncertain job market, being an independent contractor can give you increased freedom, according to Espinal. "In a traditional 9-to-5, you don't have control over whether or not you go to work the next day. You have an employer who makes that decision for you," he said. Top advantages to freelance work: ☑️ Set your own schedule ☑️ Choose your own clients ☑️ No salary ceiling ☑️ Flexibility to pivot The downside of freelance work Not everyone is comfortable with marketing their business or managing their time and finances. As a freelancer, you'll have to be willing to sell your services and get used to keeping receipts for expenses, paying quarterly taxes and reconciling your finances monthly. "I recommend getting a bookkeeper if you can, because there are just so many rules that change every single year," said Meyers. If you can't afford to hire someone, try different platforms or accounting software such as QuickBooks and HoneyBook. One major disadvantage to freelance work is the lack of benefits. You won't get paid time off, a retirement account match, short-term disability, health insurance or anything else that typically comes with an employment compensation package. You'll also need to be prepared to give up a steady paycheck and get used to a more erratic income stream. "Payments from clients aren't always prompt, and sometimes you have to chase them down," said Smith. In some cases, clients could refuse to pay entirely, which makes it even more important to have a written agreement when taking on projects. According to Espinal, around 75% of freelancers accept work without a contract, leaving them vulnerable to noncompliant clients. If you go into freelance work to fulfill your passion on a full-time basis, be careful you're not living and breathing work. An otherwise fun hobby, like baking, could become particularly grueling if you're trying to transform your personal kitchen into a cookie factory. Staying motivated requires being cognizant of work-life balance to avoid burnout. Main disadvantages of freelance work: ☑️ Inconsistent payments from clients ☑️ No included insurance or retirement benefits ☑️ Ongoing expenses and taxes ☑️ Fatigue from not setting boundaries Final tips for new freelancers ➡ Be bold When starting out, you'll face a lot of rejection and ghosting. "But you have to keep believing that the next opportunity is going to be the big break," said Smith. Don't be ashamed to market your business however you need to, she added. Remember that a lot of your clients will hire you not only because of your skills, but also your character. "Don't be afraid to share your personality," said Meyers. ➡ Get a website A business website shows off your portfolio and is great for search results. It also demonstrates that you're human, Smith told me. If you don't have a website, make sure you have some type of web presence (substack, landing page, social media), so clients can see your work and contact you easily. Once you have a web presence, don't force your clients to scroll through multiple pages to know what you're selling. Meyers recommends creating clear packages and service offerings. ➡ Prepare the financials First, prioritize building up an emergency fund to cover at least six months of expenses in case of unexpected circumstances. Factor in all your business overhead expenses ahead of time: software, equipment, gas, meals. Study the tax rules to know exactly what you can claim as a deduction. You'll also want to make sure you can afford to pay health insurance out of pocket and contribute to a retirement fund. If you're interested in other insurance offerings besides health insurance, Espinal said the Freelancers Union provides some benefits, including disability, liability, and life insurance, to members at a fraction of the cost.
Fast Company
10-07-2025
- Business
- Fast Company
Starting a freelance career requires a ‘push' season. Here's how you navigate that.
Freelancing is gaining popularity today, given the instability of the full-time job market and the benefits that self-employment can offer. Nearly 58 million Americans consider themselves 'independent workers.' That's 36% of employed respondents, up from 27% in 2016, according to a McKinsey survey. Despite increasing interest and the numerous perks to freelancing, it can be difficult to start. As a freelancer of 12 years, the beginning is what I call the 'push season.' This requires a significant push to attract clients, deliver work, and set up operations. At first, there are many uncertainties. You're reassessing your professional identity, which can bring up a lot of new feelings. You're also responsible for taking on every function of the business, from accounting to marketing and sales. And most important of all, you've got to bring money in the door to ensure it's a viable venture. Whether you're putting in more hours, effort, or energy, the goal is to establish your client base and business foundation. At the same time, you want to avoid burning out in the process. Navigating this push season intentionally can better position you for continued stability as a freelancer. Here's what worked for me and other seasoned freelancers. Attracting clients during the push season When you first get into freelancing, you're starting fresh. Yes, this is still the case even if you're leveraging some of the trust, connections, and experience you've built in previous full-time roles. It's going to take time to build up your reputation, relationships, and expertise around offering your services in a freelance capacity. The initial two to three years are often the push season, This is where you're building significant momentum around your offerings as an independent contractor. You'll mainly focus on three key areas: attracting clients, balancing your workload, and structuring your business for longevity. Bringing on clients, for example, requires you to make consistent efforts to market yourself to potential customers. This is likely going to take up a lot of time in the initial period. When I started freelancing, I sent about 20 cold email pitches a week to companies that would benefit from my writing and marketing services. I also messaged colleagues on LinkedIn. That way, they can keep me in mind for this type of support, and I regularly shared educational posts on social media. Now, some of this is about scale (like how much outreach you're doing), but most of this effort is about regularly communicating your value to the right people in the right places. 'I had to invest way more time and energy into finding paying work and clients. That's a bigger time suck than people might think it is,' says Kat Boogaard, a freelance writer of 11 years who sometimes worked 60-plus hour weeks during her initial push season. 'While I used to spend a lot of time sending cold emails and scouring freelance job boards, more of my work started to come through referrals or other inbound efforts as I got more established,' she says. Landing clients takes a lot of effort up front, but it is a worthwhile investment. Once you're established and clients know you from your work, you can begin to ease up on these activities. How to balance a freelance workload Another important aspect is balancing your workload is determining how many projects you need to take on to build financial stability. At the same time, you don't want to sacrifice quality or burn out. This will require some trial and error. As you take on a mix of tasks and different deliverables for clients, assess (and document) how long it takes you to complete them. Taking on too many assignments or a project requiring more time than expected led to many long work days in this phase of my freelancing. Limit spells of overworking by giving yourself more runway on each project. This way, you can leave room for downtime between tasks, and thoughtfully increase your pricing over time. Mimi Gonzalez is a a social impact strategist and Gen Z inclusion consultant. She's been freelanced for close to three years, and said that this season required her to let go of certainty and structure. Systems that once felt safe no longer served her when she became a freelancer. Recognize that moving to freelance work requires a considerable mindset shift. You're going from completing assigned tasks in a full-time role and being accountable to a boss, to designing your workload without supervision. This change may also require you to redefine what career success looks like to you. Prioritize longevity in your practice You'll also want to structure your freelance practice for the long term. Many people treat freelancing as a stopgap, which is great if that's what you're after. However, if you want to ensure that it's a viable career trajectory over time, you'll need to diversify. This entails finding a mix of clients, supporting multiple industries, or trialing different service offerings. Doing so allows you to gain stability and reduce reliance on any single source of income. At the same time, you're likely setting up a website, business insurance, accounting system, and the other typical building blocks of getting your freelancing in motion. The challenge here is prioritizing these tasks that will allow you to get your practice running while making long-term investments in future progress. It's a constant process, but like any season of freelancing, you'll move through it. 'Push seasons aren't one-time events. Every new level of visibility, income, and purpose brings a different kind of push and set of decisions you have to make,' says Gonzalez. Gonzalez went on to say, 'And then there are calmer seasons, when your work carries its own momentum and opportunities arrive because people already believe in what you've built. That first push season will always stay with me, though. It required urgency to build visibility and momentum quickly.'
Telegraph
08-07-2025
- Business
- Telegraph
HMRC issues 600,000 fines – to people who owe no tax
HM Revenue and Customs (HMRC) has charged 600,000 late penalties to low earners despite them owing no tax. The tax office applies an automatic £100 fine if someone misses the tax return deadline of January 31, with penalties increasing over time and escalating to more than £1,600. Workers who earn more than £1,000 in self-employment income are required to file an annual tax return, which means even those below the £12,570 tax-free allowance could be hit with a penalty for late filing. Between 2018 and 2023, 600,000 penalties were charged to taxpayers with no income tax liability, according to figures obtained by Tax Policy Associates via a Freedom of Information request. This includes multiple penalties received by the same individual. Dan Neidle, of the think tank, said he had heard from 'hundreds' of those affected, many of whom had serious physical and mental health difficulties. He said: 'The Government should act, and stop the most vulnerable in society having their lives made harder by HMRC.' The Freedom of Information request revealed that those who owed no tax were more likely to face a late penalty than any other group based on income decile. Some may have been fined by mistake after earning less than the £1,000 trading allowance. Anyone who believes they have been incorrectly fined for filing late can appeal directly to HMRC within 30 days of the penalty notice being issued. HMRC said it had cancelled around one third of late submission penalties over the past three years. The previous Conservative government introduced a new penalty regime, which it described as 'simpler and fairer'. Under the points-based system, there will no longer be an immediate £100 fine if the deadline is missed, and penalties will be capped at £200 per tax return. However, only taxpayers joining Making Tax Digital will be subject to the new regime. Those earning over £50,000 in self-employment income will be brought into HMRC's digital drive from April 2026, dropping to £20,000 by 2028. Taxpayers outside of Making Tax Digital will continue to be assessed under the old regime. The Low Income Tax Reform Group (LITRG) has warned this creates a 'two-tier' system, where low earners pay thousands of pounds more for filing late. Antonia Stokes, of the group, said: 'LITRG would like to see HMRC speed up its roll-out, so that all taxpayers can benefit from the new penalty regime. 'If this is not possible, there are a series of tweaks HMRC could make to the existing regime that will bring it closer to its replacement, and mitigate some of these harshest effects.' These tweaks include greater leniency towards those who have missed the deadline just once, and easier exit from self-assessment for those who no longer need to file a tax return. A spokesman for HMRC said: 'Our aim is to help people to get their tax right and avoid fines altogether, and 11.5 million customers filed their 2023-24 tax return on time. If you no longer need to file a tax return, including because your earnings are lower, check using our online tool and then tell us to avoid a penalty. 'Those who believe they've incorrectly received a penalty for filing late can appeal. We can cancel penalties when a reasonable excuse is provided.'
