The gig economy has been on a meteoric rise over the past few years, and nowhere is this more evident than in the UK. Freelancers now make up a significant portion of the UK workforce, offering businesses and individuals access to specialised skills without the long-term commitment that comes with permanent staff. Whether you’re a start-up founder needing extra hands, or a larger company looking to diversify your talent pool, hiring freelancers could be the ideal solution.
But, if you’re considering hiring freelancers in the UK, there are a few things you should keep in mind to ensure a smooth and successful partnership. This article will walk you through what you need to know, from the legalities to finding the right freelancer for your project.
Why Consider Hiring Freelancers?
Freelancers offer a range of benefits for businesses of all sizes. Unlike full-time employees, freelancers are generally hired for specific tasks or projects, giving you the flexibility to scale up or down depending on your current needs. Here are a few reasons why you might want to consider hiring freelancers:
- Flexibility: Freelancers are available on demand, meaning you only hire them when you need their expertise. This is especially useful if your workload fluctuates.
- Cost-effectiveness: With freelancers, you’re not bound to providing benefits such as pensions, holiday pay, or sick leave. You also save on overheads such as office space and equipment.
- Access to specialised skills: Freelancers often have niche expertise, whether it’s graphic design, writing, coding, or marketing. This allows you to find the perfect person for your project without needing to upskill existing employees.
- Focus on results: Freelancers typically work to a fixed brief or deliverable, so you’re paying for the end result rather than time spent.
While the advantages are many, hiring freelancers comes with its own set of challenges. Let’s explore the key points you need to know to ensure a smooth and effective process.
Understanding the Legalities
One of the most important aspects of hiring freelancers is getting the legal side right. The UK has specific laws that govern freelance work, and it’s crucial to stay compliant to avoid any future headaches.
Employee vs Freelancer
The first thing you need to be clear about is the distinction between an employee and a freelancer. Unlike employees, freelancers are self-employed individuals who manage their own tax, National Insurance contributions, and other statutory obligations. They are responsible for their own business costs and are free to take on multiple clients at once.
It’s essential that you don’t blur the lines between freelancers and employees. HMRC (Her Majesty’s Revenue and Customs) is strict about this, and if you treat a freelancer too much like an employee, you may inadvertently trigger a situation where they could be classified as a ‘disguised employee’. This could leave you liable for back taxes, National Insurance contributions, and penalties.
Contracts
A well-drafted contract is crucial when hiring a freelancer. The contract should clearly outline the scope of work, deadlines, payment terms, and intellectual property rights. While many freelancers may have their own contract templates, it’s always a good idea to review them and ensure they align with your expectations.
Here’s what a typical freelance contract should include:
- Project scope: Define what work the freelancer is expected to deliver.
- Timeframe: Set clear deadlines for when the work should be completed.
- Payment terms: Specify when and how the freelancer will be paid (e.g. hourly, per project, etc.).
- Intellectual property (IP) rights: Clarify who owns the rights to the work once it’s completed.
- Termination clause: Outline how either party can end the contract early if needed.
IR35 Legislation
The UK’s IR35 legislation is a tax law that affects freelancers working through an intermediary, such as a limited company or an umbrella company. If your freelancer falls within the IR35 scope, it could change how they are taxed and the level of responsibility your company holds. For example, if a freelancer is deemed to be inside IR35, they may have to pay income tax and National Insurance like a regular employee.
As of April 2021, the responsibility for determining whether IR35 applies shifted from the freelancer to the business hiring them (if the business is medium or large). Therefore, if you’re hiring a freelancer via a limited company, you’ll need to assess whether they fall within IR35. This can get complicated, so seeking legal or financial advice may be wise.
Finding the Right Freelancer
Once you’ve navigated the legal aspects, the next challenge is finding the right freelancer for your project. With a plethora of talent available, how do you ensure you’re hiring someone who will deliver high-quality work?
Use Freelance Platforms
The simplest way to find freelancers is by using online platforms such as Upwork, Freelancer, and PeoplePerHour. These platforms allow you to post job listings and browse freelancer profiles, making it easier to find the right fit. Many platforms also offer built-in features like project tracking, payment systems, and even dispute resolution should anything go wrong.
Each platform has its own fee structure, so make sure you’re aware of the costs before you begin. Some take a percentage of the freelancer’s fee, while others charge you for posting jobs or accessing certain features.
Ask for Referrals
Word of mouth remains one of the best ways to find top-tier talent. If you know other business owners or professionals who have hired freelancers, ask for their recommendations. Freelancers who come with a glowing recommendation are often more reliable than those found through cold outreach.
Review Portfolios
A freelancer’s portfolio is often a better indicator of their abilities than their CV. Make sure you thoroughly review their previous work to gauge their style, quality, and suitability for your project. If you’re hiring a writer, read samples of their work. If you’re looking for a designer, ask to see examples of past designs.
Communication is Key
Freelancers often work remotely, which means clear communication is paramount. Before hiring anyone, make sure you’re both on the same page regarding project details, timelines, and expectations. Misunderstandings at the start can lead to delays or disputes down the line. A brief, regular check-in (via email, Slack, or other project management tools) can keep things on track.
Managing Freelancers Effectively
Hiring the right freelancer is only the first step. To get the most out of your partnership, you need to manage the relationship effectively.
Set Clear Expectations
One of the most common pitfalls of working with freelancers is a lack of clarity around expectations. Make sure you provide a detailed brief outlining exactly what you want. The more specific you are, the easier it will be for the freelancer to deliver exactly what you’re after. Ambiguity often leads to scope creep, delays, and frustration for both parties.
Establish Regular Check-ins
While freelancers work independently, it’s still essential to maintain regular communication to ensure the project is progressing smoothly. Depending on the complexity of the task, weekly or bi-weekly check-ins can help catch any potential issues before they escalate.
Provide Feedback
Freelancers, like employees, need feedback to improve. If something isn’t quite right, don’t be afraid to speak up—but do so constructively. Clear, actionable feedback will help the freelancer make necessary adjustments without feeling demotivated. On the flip side, positive feedback for work well done is equally important.
Pay Promptly
Freelancers often rely on timely payments, and nothing sours a professional relationship faster than late payments. Stick to the payment terms agreed upon in the contract and ensure that invoices are paid promptly. Not only does this keep your freelancer happy, but it also boosts your reputation as a fair client.
Conclusion
Hiring freelancers in the UK can be an incredibly effective way to access specialist skills, save costs, and bring fresh perspectives into your business. However, it’s crucial to approach the process thoughtfully. Understanding the legal landscape, finding the right talent, and managing freelancers effectively will help you get the most out of this flexible workforce.
By following the guidelines outlined above, you’ll be well on your way to building successful, mutually beneficial relationships with freelancers—leading to high-quality work and smoother projects overall.
We hope you've enjoyed the read. Why not see if we you're eligable to save with one of our comparisons next?