It is estimated that over 2 million people in the UK are freelancers with over 5 million registered as self-employed. The biggest question that came to my mind when I went self employed was ‘what is the difference between self employment and freelancing?’ A lot of people who say ‘nothing’ but it’s actually two different entities. So you can get to know me a bit better and also learn how the whole thing works if it’s something you’re considering with your career, I’ve got the whole deal clarified in this blog post.
So what’s the difference between freelancing and self employment?
In general terms, freelancing and self employment are VERY similar and a lot of people would refer to themselves as both, I certainly do.
I personally see it as freelancing being the act of working on a casual basis for various clients, your services may differ depending on the client and you won’t be paying PAYE as a freelancer. You could be a freelancer whilst working a 9-5 and you may do the role casually alongside other projects.
Self employment is the act of running a business as your income/career and you use your business to provide services. Generally your work can be the same as a freelancer and you’ll be under self-assessment the same way a freelancer would be.
An example of what I do…
When I left my full time role I registered as a sole-trader (self-employed) via HMRC in March 2018 . So there’s a slight difference between self employment and freelancing. This meant I was acknowledging any tax going forward would be paid through self assessment and that my circumstances had changed. I set up ‘The Media Type’ which is technically my business name but I don’t promote this often.
The Media Type encompasses everything I do under my digital marketing services and my blog. My blog is now part of my business and a small chunk of my income comes into that band (if you want to see how then read this post).
I freelance as an editor for the magazines. I won’t go into the ins-and-outs but essentially this is a freelance contract. I’m heavily involved in the magazines and whilst I didn’t set up the business, I run the magazines day-to-day. This is where freelancing and self employment goes hand in hand, in that all the income and taxes work from the same pot. I see it as I sell myself as a ‘magazine editor’ for our publications and I run a digital marketing business too.
So am I freelancer if I’m a blogger?
This all depends on your mindset to your blog. Do you blog and sell your services as a blogger to brands? Do you pitch your blog as a platform that brands can use (and PAY you to use)? Whilst these days we have to declare ‘gifts’ as a form of payment, the banks won’t appreciate a skincare product or free meal as payment for your mortgage so consider if you’re making genuine money.
Making money from your blog and treating it as a business definitely brings you into the realms of freelancing. You’ll notice that there’s lots of freelancers who blog as well as doing their ‘day job too.’ Like myself, thats why I have a ‘Publications‘ tab in my menu because my day jobs cross over with my blog too.
Be proud if your skills are a blogger as you never know how it may aid your CV in the future, especially if you’d like to take the self-employed route in the future.
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What’s your thoughts on freelancing? Does this clear up your thoughts on the terms used?