To gig or not to gig? That is the question...

Contracting

Freelancing

Gigging

Self-employed

There are a range of ways to describe someone who works for themselves, according to HMRC-

“A person is self-employed if they run their business for themselves and take responsibility for its success or failure. Self-employed workers aren't paid through PAYE, and they don't have the employment rights and responsibilities of employees.” Source: gov.uk

I have been both employed and self-employed and can see the benefits and disadvantages from both sides. The rise of the internet and online working has meant more opportunities for those who want to provide their services to multiple businesses or on an ad-hoc basis. To give you an idea of the level of freelancers now I would recommend you check out a fascinating report by Andrew Burke "The Freelance Project and Gig Economies of the 21st Century”. Caroline Morgan, Chair of the IPSE (Association of Independent Professionals and the Self-Employed) provided the foreword where she says of freelancers “This 2.1 million-strong group not only offers true freedom and flexibility to people across the UK; it also generates between ￡140bn and ￡145bn for the economy every year”.

So, for an individual, what are the advantages and disadvantages of working as a freelancer?

Advantages –

• Flexibility. Working for yourself essentially means you’re the boss so you can dictate what you do and when you do it.
• Financial. There can be a financial gain from working for yourself, this might however be affected by the changes coming to IR35 (if you know about this please get in touch, I’m looking for a collaborator for a future project). Some find shorter-term projects pay higher and working from home if possible, can cut overheads.
• Work/Life balance. In my opinion this is both an advantage and a disadvantage. Being able to put down the laptop to do the school run or schedule conference calls around assemblies is a real perk in my opinion. The balance isn’t always easy, but I believe it’s important one.
• Avoid the commute!!!! At one point I used to commute over 6 hours a day, before decent Wi-Fi and wasted weeks of my life doing it. You may still need to travel to client sites, but chances are you’ll spend less time cursing public transport or traffic and more time being productive.
• Choose who you work with. Most of us must deal with people in our professional lives who rub us up the wrong way, if it’s your business you can say no! I have had the pleasure of turning down business from someone who had no respect for me or what I do- politely declining their request was a good feeling.

Disadvantages –

• It’s probably just you so if you don’t do something – it doesn’t get done. The responsibility and stress of being your own boss must not be underestimated. I will never get over the roller-coaster feelings of joy and utter dread associated with working for yourself.
• Simply put: If you don’t have the business coming in then you don’t get paid. So, if you get sick, get used to trying to work through it. There are insurances and schemes that you can use to support yourself, I’d advise looking into them.
• Sometimes work must come first, or at least joint first. It is very difficult when you have no choice but to work, be it pacing by the pool on the phone on holiday or sending emails on the weekend. It is not easy to switch off.
• Expense. Most companies provide their employees with the necessary tools to do their job, if you’re going out on your own then you will need to invest in them. Just like owning your own home, if the computer (boiler) breaks- you need to sort it! I’d advise insuring everything to the hilt.
• Professional relationships and your reputation are essential to building your business. One wrong move and your livelihood can be severely compromised, this can mean huge pressure and responsibility. Your business is very much YOU.

Freelancing was lucrative in the oil and gas industry for many years and it is rapidly becoming a genuine option within the health and safety profession. More businesses are discovering that they need to tick the boxes and meet the legal and required obligations- a specialist consultant can often be the answer. I’m excited to see what the future of freelancing is.

Have you worked in both capacities? Which did you prefer?

Does your business support those who work as freelancers? Comment below to share

Do you know about IR35 and its impact on freelancers? Get in touch if you’d like to find out about a future project, I have in mind

 What impact do you think Brexit will have on those working in a self-employed capacity?