Freelance work
Freelance work usually means providing services to clients through your own business, with payment agreed by project, time or another measure.
A freelancer may work for several clients or concentrate on one assignment at a time. The agreement should explain the work to deliver, deadlines, fees, revisions and payment terms. When comparing a freelance rate with a salary, allow for the time and costs involved in running the business, including finding clients and doing administration. An invoiced amount is different from personal take-home income.
Registration and tax obligations depend on where you work and how the business operates. UK guidance says people working for themselves may need to set up a business and report income to HMRC. In the United States, self-employed people generally handle income tax and self-employment tax, with estimated payments where required. Treat the word freelance as a starting description and confirm the actual legal and tax status of the arrangement.
Example
A freelance editor agrees a project fee covering an initial edit and one revision. Additional rounds, the delivery date and the invoice deadline are written into the agreement before work starts.
What to check
- What deliverables, revision limits and payment dates are agreed?
- Which business costs and unpaid working time must your fee cover?
- What registration, tax and insurance obligations apply where you operate?