The short answer is yes. For many aspiring freelancers, balancing full-time employment and freelancing can be a strategic employment structure while transitioning into self-employment. It offers a stable financial foundation and a sense of security until they can establish a solid client portfolio and cash flow. In this article, we’ll explore some key personal and business aspects to consider when navigating both roles simultaneously.
Full-Time Employment
As an employee, you enjoy the perks of being on the organization’s payroll, receiving a regular monthly salary, and benefiting from statutory employment advantages like a pension scheme and paid sick leave.
Umbrella Company
For freelancers who encounter Inside IR35 contracts, working under an Umbrella Company might present a viable solution. The Umbrella Company acts as your employer, providing you with pay and statutory employment benefits, while allowing you to switch between contracts.
Juggling Employment & Freelancing
When combining full-time employment and freelancing, time management becomes crucial to avoid any conflicts with contractual agreements. It’s vital to ensure you comply with both your clients’ requirements and your employer’s policies. Depending on your income level, you may consider hiring an accountant to handle your taxes and ensure compliance with regulations.
One significant advantage of this dual arrangement is the potential for increased income and career growth opportunities. However, it’s essential to carefully weigh the pros and cons before committing to this setup.
First Steps to Prepare for Freelancing
- Build a Strong LinkedIn Profile: Showcase your skills and experience on LinkedIn to attract potential clients and employers.
- Research Rates in Your Industry: Conduct thorough research on common rates in your industry, whether locally or internationally.
- Network with Peers: Establish connections with other freelancers in your industry through networking events and online communities.
- Leverage Your Network: Leverage your existing network of friends, acquaintances, or former colleagues to secure your first freelance job referrals.
- Explore Freelance Platforms: Look for freelance opportunities on reputable platforms and job boards to find suitable projects.
- Consider Business Structure: Initially, operating as a sole trader may be practical, but as your income grows, transitioning to a limited company could offer tax advantages.
In Conclusion
Building a successful freelance career takes time and effort; it rarely comes without challenges. While it has the potential to offer financial and lifestyle benefits, we strongly recommend consulting with our team of accounting specialists before making any long-term decisions that may impact your financial well-being. At Cleverccounts, we’re here to provide expert advice and support as you embark on your freelancing journey.
