It’s Freelancer day today so lets debunk some of our favorite myths about freelancing:-
Freelancers earn loads of wonga - Freelancer pay is very much dependent upon industry, location, length of contract etc. In Engineering a typical freelancer may earn 25% more than a “permie” but that’s like comparing apples & pears as the freelancer gets no paid holiday’s, sick pay, pension, bonus etc etc so a direct comparison needs to take into account the monetary value of these “permie” benefits.
Freelancers pay less tax – There is some truth in this. By owning a Limited Company a Freelancer may structure his pay to take home more income (perfectly legal) but the biggest benefit is being able to deduct legitimate business expenses like car mileage from taxable income. It should be stressed that legitimate Freelancers pay their full contribution according to UK tax law.
Freelancing is insecure – This is largely down to career management. In a lot of respects it can be more secure because the contractor has more active control. Rather than being at the whim of an employer the Contractor tends to be secure for the length of his contract & needs to be active in seeking another towards the end. If her Network is well developed this is perfectly manageable.
Freelancers can’t get a proper job – some people move easily between Contracting & “Permanent” roles. The majority, however, prefer freelancing. Most Freelancer’s wouldn’t take a permie job given the choice.
Freelancers are ruthless opportunists – no more so than the companies who employ them on short notice contracts. Freelancers are certainly not naive & are perfectly capable of exploiting an opportunity should it arise.
Freelancers are essential – Of course I would argue this but who else is going to step in & cover for 12 months maternity leave or provide invaluable support through a period of rapid growth. If it wasn’t for Freelancers the corporate world would be like a Swiss cheese.
Freelancers are competent Professionals – undoubtedly true. To survive without the fluffy blanket of corporate support, to learn on the job, hit the ground running, contribute immediately & be effective are all signs of competent professionalism. If you want an easy life don’t go into freelancing.
So why would anyone want to go into Freelancing ———that’s for the next post.
Happy Freelance Day!
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