Freelance
Freelance work is a fantastic option for anyone wanting to be their own boss. Instead of being employed by a company, freelancers are self-employed. Freelance work can be done full-time or as a part-time side hustle!
Freelancers typically work in creative industries, like journalism, copywriting, and graphic design, but there’s also a demand for freelancers with skills in tech, accountancy and finance, admin, and even health and fitness.
Essentially, if you have a set of skills which you think people will pay for, you could stand to make money by becoming a freelancer.
However, there are pros and cons to becoming a freelancer, so learn as much as you can first. In this OddsMonkey guide, we’ll cover the following:
Freelance work is carried out on a contract-by-contract basis rather than as part of employment for a single organisation. Freelancers are self-employed and can engage with more than one client at a time. Many freelancers often work on multiple assignments at once.
The term ‘freelance’ (as ‘free-lance’) was first used in Sir Walter Scott’s novel Ivanhoe in 1819 to describe mercenaries who were willing to work for whoever paid the most. These men were considered ‘free’ and not bound by loyalty to any one party, while ‘lance’ referred to their weapons.
Over time, the term has shifted from its origins on the battlefield to the meaning of freelancing we know today.
The idea of working for yourself appeals to lots of people in the UK. Freelance work offers flexibility, working as and when you choose, and can allow for a better work/life balance.
Research conducted in 2024 found that there were a little over 2 million freelancers in the UK, making up almost half of those who are solo self-employed (i.e. self-employed without any of their own employees).
Not all work is completed by an in-house team. Sometimes, businesses choose to outsource work. Creative agencies can pick this work up, or freelancers, depending on what the client is looking for.
Freelancers can choose to work with a client on a short or long-term basis, either completing one-off tasks, contracts which run for a number of months, or multiple gigs of varying lengths.
One of the chief benefits of freelancing is also one of its chief downsides. Neither you nor your client has any obligation to continue to work with the other beyond any existing contract – this gives you fantastic flexibility, but it also means that you have very little job security.
Jobs from all kinds of sectors can be done on a freelance basis. A lot of the time, if work can be outsourced (instead of being done in-house), it can be done by a freelancer. Here are some examples of the types of jobs that you could do as a freelancer:
It’s certainly possible to freelance without having any prior experience as a freelancer – but ideally you will at least have experience in performing the work you plan to offer to your clients.
That said, it is possible to branch out as a freelancer into adjacent fields, or even to pick up a completely new skill. This may be easier once you’ve already completed several jobs as a freelancer, as you’ll have demonstrated your reliability, even if you’re newer to the type of work you’re taking on.
Ultimately, though, you’re most likely to find success if you focus on offering services that rely on your existing skills and experience, giving your new clients good reasons to place their trust in you.
Perhaps the best way to find work as a freelancer is to look online. There are loads of sites offering the latest freelancing opportunities. Some may be sector-specific, which should help you minimise the amount of time you spend searching for work.
The most well-known of these sites is probably Upwork, but there are many others to look at too. Upwork is a platform where freelancers and clients can find each other.
Freelancers sign up to the site, create a profile which shows their skills and experience level, and submit proposals to jobs they’re interested in completing. Conversely, clients post job listings describing the job and available budget and then review and accept proposals.
The amount of money freelancers get paid varies wildly, depending on experience, sector, and the nature of individual tasks.
Freelance copywriters, for example, will typically charge £30 per hour or more – often a lot more, for those with plenty of experience.
Freelance graphic designers, meanwhile, may charge anything from £20 to £100 per hour, again depending on their skill and experience, or the nature of the job.
When deciding on how much to charge for your own services, you should research what others in your field are charging to help you decide on an appropriate rate to set.
Because you’re not working a typical 9 to 5, you have a bit more flexibility. For example, if you know that you’re more productive in the late afternoon/evening, it makes sense to start working a bit later in the morning. As long as you schedule your workload properly, freelancing should allow you to set your own hours.
Some jobs can be a bit repetitive, doing the same sorts of tasks and working on the same projects day in and day out. Freelance work gives you the opportunity to pick work from a whole range of topics. One month you might write reviews for money; the next, you could be working on an ‘About Us’ page for a SaaS company.
Generally speaking, freelance work can be done entirely online and from home, allowing you to avoid commuting and enjoy more free time.
Especially once you’re established, you have the freedom to decide who you work with. You can cultivate long term relationships with clients you enjoy working with, or avoid clients who don’t suit your way of working, or whose vibe you don’t like when you initially speak to them.
Depending on your personality type, you could find freelancing isolating. Without regular colleagues, you’ll spend most of your time working alone, especially if you’re freelancing from home.
It’s up to you to sell yourself, set your rates and pitch your skills, so it’s also up to you to upgrade your job title or increase your pay. As a freelancer, career progression isn’t as clear as it is for employees, and there’s no boss to offer you a promotion or pay rise for doing a good job.
That doesn’t mean that your career can’t progress, though; if you think you’ve moved up a level in terms of skills and experience, reflect this in how you sell yourself.
This is the downside of having flexibility; your days are not organised by anyone unless you structure them. Organisation is a key part of freelancing, and it’s up to you to make sure you set and stick to a schedule to ensure that you meet deadlines.
Even with repeat clients and a (hopefully) higher-than-an-employee hourly rate, freelancing involves a certain amount of ‘feast and famine’. It just doesn’t come with the stability of a monthly paycheck, and you don’t get paid for sick days or holidays.
It’s a good idea to draw up a budget and put away what you can while the pay is good to make sure you have enough when the times aren’t so good.
You’ll also need to keep on top of payments which will involve submitting invoices to the clients and, unfortunately, chasing unpaid invoices.
Freelancers tend to work as much as they can, as they can never be certain of how much work they’ll have in the future. This can easily lead to burnout, which can have a serious impact on your ability to produce good quality work on time.
If you’re considering setting up a freelance business, be aware that you may need to wear a few hats. And unfortunately, you’ll need to spend some time on tasks that can’t be billed for:
Pick a structure for your freelance work. Are you a sole trader, a limited company, or an umbrella? Speak to other freelancers and an accountant to help you understand the benefits and drawbacks of each.
Have a written contract in place for every client you work with. Detailing everything, including the brief, expectations and deadlines of a job, will make it easier to settle any disputes.
Value-added tax is an amount added to the cost of almost all goods and services that are bought in the UK. The current rate is 20%. If you set up a freelance business and earn over a certain threshold (£90,000 in the 25/26 tax year), you’ll need to register for and collect VAT.
It’s a good idea to know how VAT can affect you and your business. You may need to add VAT to your prices and send that extra money to HMRC. You’ll be able to claim back any VAT that you pay on business supplies.
Income tax is calculated on the total amount of money you earn. You’ll pay 20% tax on earnings that exceed your personal allowance and are below the upper limit of the basic rate or 40% tax on earnings above the higher rate limit.
If you plan to freelance as a side hustle, you’ll need to submit a self-assessment tax return if you make over £1000 in a calendar year – which, hopefully, you will! So make sure to keep records of your work, and set aside some of your earnings to ensure you can pay your tax bill.
As a freelancer, you need to couple your creativity with organisation. It’s so important to keep an accurate record of your finances. Bookkeeping is also the best way to record invoices and check who’s paid and who hasn’t.
Your expenses can be deducted from your taxable income, so make sure to keep track of them. Equipment you use for your work can be deducted (e.g. the cost of a new laptop), as can a percentage of your housing costs and any professional subscriptions.
Payment terms are another important part of being a freelancer. While you can set the terms, you may need to be flexible or be willing to change your terms depending on the client. You may also need to have quite short payment windows in order to stay on top of your cash flow.
It’s always a good idea to discuss your payment terms with a client before you work with them so that you can try and avoid surprises or problems.
Stay on top of invoicing. Tell your clients when you’ll be invoicing them, and stick to that. Otherwise, your payments will be delayed, and you may find yourself struggling with cash flow. Also, don’t hesitate to chase people if they forget to pay on time.
Cashflow is one of the most important things you’ll need to keep an eye on as a freelancer. Although you won’t typically have huge expenses as a freelancer, it’s depressingly common for clients to be slow to pay for work, and you could easily find yourself running into difficulties if you don’t keep on top of money you’re owed.
Although it’s perhaps one of the most important parts of working for yourself, knowing how to make money freelancing isn’t necessarily one of the easiest. For example: how do you know how much your work is worth and how much you should charge?
As someone looking to break into the world of freelancing and find your first client, it can be tempting to underprice yourself. Apart from anything else, if you’ve been salaried up until this point, it can be difficult to figure out the value of your work.
However, it’s important to remember low-pricing yourself into jobs by not asking for enough could do more damage. By that, I mean that if your rates are set too low, potential clients will begin to wonder why. If you don’t value your work, why should anyone else?
The other issue with underpricing yourself is that some people may take advantage, and you could find yourself working for next to no reward. While you’d gain experience, this doesn’t pay the bills.
There are two main options when it comes to being paid as a freelancer: by the hour and per project.
In order to decide which is the best option for you, you’ll need to do some market and competitor research. See if you can find out what other people in your sector are charging.
How does their work compare with yours, and what extra skills or added value do you have that will let you charge more? Always make sure that your pricing structure is clear to potential clients before you start a job.
One way to calculate a freelance hourly rate could be to start with a target ‘salary’ in mind. Then, work out your expected business outgoings, which could include capital expenditure, rent, utilities, travel, etc. and add that amount to your target salary.
You’ll also need to consider how much time you’ll be working. Remember: freelancing isn’t necessarily a 9 to 5 job; clients often expect projects to be delivered in a shorter turnaround, and work isn’t always constant.
Divide the total of your target salary and your costs of business by the number of billable hours you think you’ll be working to find an appropriate hourly rate.
As with charging by the hour, charging per project can leave you open to underpricing yourself, especially if the client hasn’t been entirely clear about their expectations at the start.
If you decide to bill per project, be aware that you’ll most likely need to take responsibility for unexpected delays from the client side, and that you may well get some pushback from the client if the work takes longer than originally anticipated and you add extra charges.
There’s no reason you can’t increase your rates once you’re an established freelancer. As you gain experience, you should review your rates regularly and consider raising them, especially if you’re getting work with ease.
If you have ongoing clients, conduct annual rate reviews with them to ensure that you’re charging the right amount for your skills and experience.
You may also choose to raise your rates for a specific project. For example, if a client requires a ‘rush job’, they’ll need a certain amount of work on a shorter deadline. In that case, it would make sense for you to up your rates.
You might also raise your rates if you’re especially busy. If you don’t need to take on any extra work, it’s reasonable to charge a premium for your time.
Where can you find freelance work? As well as word-of-mouth, social media, and searching on Google, it’s definitely worth signing up to a freelance platform or two. Below is a list of the best freelance work websites in the UK.
Perhaps the most well-known freelancing platform, Upwork is for both freelancers looking for work and clients looking for freelancers. It doesn’t matter if you’re an expert or looking for your first gig; Upwork has something for everyone. Apply for both short- and long-term projects and hourly or per-project work in a variety of skills.
Fiverr offers micro gigs, which are predominantly short-term freelance tasks. The platform got its name because it started off as a place where people could get or offer work for $5. This approach received a lot of criticism, especially when coupled with Fiverr’s 2014 “You’re paying too much for design” Facebook ad campaign.
Since then, the base rate has become more reasonable, allowing freelancers to charge realistic rates for work. When it comes to making money here, how to sell on Fiverr is easy, with the user selling their skills and time to a client.
PeoplePerHour is a UK-based platform which is free for freelancers to join; all you need to do is complete an online application. If your application is approved, you’ll be able to check out a stream of projects from the platform’s international client community.
Freelancer offers freelance work from a wide range of sectors, from delivery to website development.
Freelancing has the potential to be a fantastic side hustle, but there’s no denying that it involves a lot of work, especially when you first get started. If you’re only looking to make a bit of extra cash each month, rather than to put your heart and soul into a new business, there are plenty of other good options out there.
One of the best is Matched Betting, which allows you to generate an income by using the free bets offered by bookies. You don’t need any existing skills or experience to make money — all you need is free time. To find out how to get started, check out the OddsMonkey Matched Betting Guide.
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