Frequently asked questions on freelancing

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Frequently asked questions on freelancing

How to manage clients as a freelancer

Managing clients effectively is a crucial skill you’ll need to learn as a freelancer. Whether you’re a freelance graphic designer, copywriter or consultant, how you handle client interactions and manage expectations can make or break your freelance business. Below, we’ll uncover key strategies for client management so you can build long-lasting client relationships to be proud of.

How to get clients

Without clients to your name, you won’t have a source of income as a freelancer. But how do you actually secure clients and projects? There are numerous ways you can find new clients and opportunities, including:

Attending industry talks and events
Cold pitching, whereby you reach out to potential clients and propose your services and solutions to them
Use social media platforms such as X and LinkedIn to broadcast your skills and expertise
Reach out to your network for recommendations
Build an impressive website that showcases your work and services

Aliyah Loughlan, Freelance Digital PR Consultant, says: ‘The best way to get clients is to join different online communities and groups. Anything from freelance Slack groups and specific freelancing platforms such as Croud, to Facebook groups. Don’t forget word of mouth is a great way to gain your first few clients too - doing good work for your first client will help get your second and third clients.

‘Remember to pay it forward too - a client or project might not fit your set of skills, so pay it forward to another freelancer, and another opportunity may come back your way in the future!’

How to build relationships with clients

Landing your first client is a big deal and something to be proud of, so you’ll want to encourage them to stick around for the long haul. The stronger your client relationships are, the more likely you are to secure repeat business and receive valuable referrals and feedback.

It’s all about consistency when it comes to clients - whether that’s in terms of the quality of your work or the regularity of your meetings. Make sure you consistently check in with them and be honest about how things are going, any issues that crop up and how you plan to solve them. Schedule regular meetings (weekly or biweekly) to update them on your progress with the project you’re working on, and always aim to meet deadlines.

By establishing clear expectations and communication, you’ll ensure client satisfaction and develop a strong working relationship.

How to inform clients of price increases

You may need to increase your rates for a variety of reasons. Inflation or economic change is an obvious but important factor - as inflation rises, your salary declines in value, so it’s vital your rates match inflation so you’re being rewarded for your hard work. But you may also find a project is taking longer than expected and you lose money as a result, or that the quality of your work has increased as you’ve built experience, and you need your income to reflect that.

Informing clients of a price increase is a delicate but important discussion. Make sure you give clients plenty of notice before your new rates kick in, and choose the right medium to tell them. Depending on your relationship, you may choose to let them know via email, or you may prefer to discuss in person or over a call. Explain the justification for your increased rates - focus on the value you deliver and also express your appreciation for their business. Approaching the situation with honesty and professionalism is key to maintaining strong client relationships.

How to deal with difficult clients

What you consider a ‘difficult’ client could mean many things - they could have a negative attitude, be particularly fussy when it comes to amends, or simply take too long to respond to emails. While difficult clients can leave you feeling frustrated, especially if they’re affecting the quality and delivery of your work, it’s important to see both sides. Try and understand where your client is coming from and remember they have their own business objectives and deadlines to hit. But it’s also vital that you stand firm should you believe you’ve done the right thing.

Here’s a step-by-step approach to dealing with those tricky clients:

Hold a meeting with the client to address the issue at hand
Put together practical next steps that will resolve the issue and ensure you’re both in agreement
Check in afterwards to ensure both of you are happy with the outcome and the plan moving forward

Invoicing as a freelancer

Invoicing is a vital part of freelance admin, acting as a record of your hard work and a request for payment. Getting it right ensures you’re paid quickly and keeps everything organised. Below are some key considerations for invoicing effectively as a freelancer.

How to write an invoice for freelance work

As soon as you’ve completed your first freelance gig, you can submit an invoice to your client. After all, the sooner you get the invoicing out the way, the sooner you can get paid! You can either produce an invoice yourself manually, or use a tool or template to make the process feel that bit simpler. Chances are you’ll find filling out a template easier, especially if you’re new to the freelancing world.

Here is a list of the information you’ll need to include in your invoice:

An identification number for the task you’ve completed
Your name, address and contact details
The company name and address of the client you’re invoicing
A description of the work you’re charging for
The date the service was provided
The date of the invoice
The amount(s) being charged
VAT if applicable
The total amount billed

How long does a client have to pay an invoice

According to the government, you have a right to be paid within 30 days of the client receiving your invoice, or the service you’ve provided - unless you’ve agreed to a payment date.

Remember, you have the right to charge interest for late payments should you want to - whether you’re new to freelancing or not, you deserve to be paid as soon as possible.

What to do if a client doesn’t pay an invoice

A client refusing to or simply forgetting to pay can leave you feeling stressed - after all, you deserve to be paid for your hard work. Should a client not pay an invoice, you can take legal action against them to resolve the issue.

But before you decide to take legal action, there are alternative routes you can take without needing to go to court. First, check if your client is likely to pay you. For example, if they have no money or assets to settle the invoice, action intended to make them pay will be tricky. You could search for their company profile in the Gazette for insolvency notices beforehand, to try and understand their financial situation.

Requesting legal advice is often a sensible route in these situations, as you’ll gain professional advice on the options available to you. You could make an appointment with a solicitor or legal advice who can explain your options and what legal action may work best. Sending a solicitor’s letter may be enough for your client to pay the money they owe you, rather than getting the courts involved.

Should you need to go to court to resolve the issue, it’s important that you have the following information to hand:

Emails, letters or other proof that you’ve tried to negotiate or use mediation to get the client to pay you. You need to prove that you’ve tried other alternatives before going to court
A letter to your client to warn them about the action you’ll take if they don’t pay. You may choose to use a solicitor to help you with this

Accounting for freelancers

Accounting is an essential but often complicated part of freelancing which evaluates the state of your finances. As a freelancer, you need to take care of your own finances such as your income, tax and business expenses. Below, we’ll cover how to manage accounting as a freelancer and the steps you can take to make financial planning feel straightforward.

Do I need an accountant as a freelancer?

Whether you need an accountant as a freelancer depends on how confident you are with your personal finances and your knowledge around business tax. If your business finances are fairly straightforward, chances are you might not need an accountant, at least not at the start.

Aliyah explains: ‘The simple answer is no. Unless you’re a really unorganised person, having an accountant when you begin your freelancing career isn’t necessary. Only until recently have I started to think about getting an accountant because I’m three years in and transitioning to a limited company and it gets a tad more confusing there.’

How much does an accountant cost for a freelancer?

As we’ve said, as a new freelancer it’s unlikely you’ll need an accountant. But if you feel worried about handling the financial side of things, working with an accountant may alleviate your anxieties, especially if you’re looking to form a limited company. They can help you navigate your VAT returns, file your annual accounts with HMRC and Companies House and submit your tax returns.

But how much does an accountant cost for a freelancer? According to Unbiased, for smaller businesses, you can expect to pay a monthly fee of anything between £60 and £450 depending on your turnover and where you’re located. If you’re looking to pay a one-off fee to help you handle your self-assessment tax return, you can expect to pay anything from £200 to over £300.

Writing contracts as a freelancer

Writing contracts as a freelancer is an integral part of the job, allowing you to clearly outline how you and your client will work together. A contract can help manage expectations, deliverables and payment terms, to minimise potential disputes. Below, we’ll answer some frequently asked questions about freelance contracts.

What is a freelancing contract?

A freelance contract is a legally binding agreement between a freelancer and their client that outlines the details of the relationship, and specific project or service. It lays out the scope of work, any deadlines to be met, payment terms and other important details to ensure both parties know what is expected of the relationship.

How to make contracts as a freelancer

Here are some of the key components of a freelance contract:

Scope of Work (SoW): This section outlines the tasks and services you’ll provide for the client, including deliverables and deadlines
Payment terms: This section will detail how and when you, the freelancer, will be paid. Remember to include the total amount billed, a payment schedule and any additional expenses
End product ownership rights: This section will explain who owns the final work once it’s completed
Terms and termination: This section outlines the duration of the contract and under what conditions it can be terminated by either party
Competitive engagements: This section specifies whether you’re allowed to work for competitors of the client during or after the contract
Non-disclosure, right to disclosure and confidentiality: This section explains any sensitive information shared between you and the client is kept confidential
Changes: This section explains how any request for changes or revisions to the original scope of work will be handled
Indemnity clause: This clause protects both you and the client from legal claims or liabilities that may arise from the project
General clauses: These are additional terms that cover various elements of the contract, such as dispute resolution and any other standard legal provisions
Party signatures: Finally, the contract will conclude with the signatures of both you and the client

Do I need to send a contract as a freelancer?

The simple answer to this question is yes - sending a contract as a freelancer is best practice. Not only is creating contracts (and other formal documents) a good habit to get into as a freelancer, it can also protect you from a legal perspective should your client look to exploit the amount of work they’ve paid for.

Getting set up as a freelancer

Embarking on your freelance journey can be exciting and empowering, but getting set up can be time-consuming. You’ll need to commit to planning and organising to ensure a smooth transition into the freelance world. Below, we’ve answered some frequently asked questions about getting started as a freelancer.

How do I declare myself as a freelancer in the UK?

Decided to start working for yourself? You’ll need to inform HMRC by registering for Self Assessment and then register as either self-employed (a sole trader) or a limited company. These two business structures have different tax obligations and admin requirements, which you can read about in our guide to limited liability.

If you decide forming a limited company is the best route for you, you’ll need to register your business with Companies House. You can either register yourself for a £50 admin fee, or get a company formation agent like SUAZ to take care of things for you, completely free of charge.

Do I need to register my business if I earn less than £1,000?

If you earn £1,000 or less in a tax year as a freelancer, you won’t need to register your business with HMRC and declare your turnover.

Do I have to declare freelance income in the UK?

Unless you earn £1,000 or less, you’ll need to inform HMRC of your freelance income and complete a self-assessment tax return. You can file your Self Assessment tax return online.

Do freelancers pay VAT in the UK?

You’ll need to register for VAT if your VAT-taxable turnover is more than £90,000. If this is the case, you’ll need to charge VAT on your services and submit this money to HMRC. The standard rate of VAT in the UK is currently at 20%.

Take your freelance career to the next level with SUAZ

We hope this guide has answered any burning questions you may have had about freelancing. As we’ve mentioned, there’s a lot to get your head around when you start freelancing, from how to get clients to what to do if a client doesn’t pay an invoice. But with effective planning and determination, we’re certain you’ve got what it takes to thrive.

Ready to embark on your freelancing journey? Form your business today with SUAZ to get started.