Skip to main content
We're here with practical information for your business. Learn about business planning, running a business and more.

Search

For a successful business, you need a viable business idea, the skills to make it work and the funding. Discover whether your idea has what it takes.

Forming your business correctly is essential to ensure you are protected and you comply with the rules. Learn how to set up your business.

Advice on protecting your wellbeing, self-confidence and mental health from the pressures of starting and running a business.

Learn why business planning is an essential exercise if your business is to start and grow successfully, attract funding or target new markets.

It is likely you will need funding to start your business unless you have your own money. Discover some of the main sources of start up funding.

Businesses and individuals must account for and pay various taxes. Understand your tax obligations and how to file, account and pay any taxes you owe.

Businesses are required to comply with a wide range of business laws. We introduce the main rules and regulations you must comply with.

Marketing matters. It drives sales and helps promote your brand and products. Discover how to market your business and reach your target customers.

Some businesses need a high street location whilst others can be run from home. Understand the key factors from cost to location, size to security.

Your employees can your biggest asset. They can also be your biggest challenge. We explain how to recruitment and manage staff successfully.

It is likely your business could not function without some form of IT. Learn how to specify, buy, maintain and secure your business IT.

Few businesses manage the leap from start up to high-growth business. Learn what it takes to scale up and take your business to the next level.

Freelancer earnings soar but inflation dents confidence

22 March 2022

Quarterly earnings for self-employed workers saw a dramatic increase in the fourth quarter of 2021, according to new data from freelancer body IPSE.

The Q4 2021 Freelancer Confidence Index, published by the Association of Independent Professionals and the Self-Employed (IPSE), has found that quarterly freelance earnings have hit their highest level since prior to the EU referendum in 2016. Quarterly earnings reached an average of £29,547 in Q4 2021 - up from £25,551 in Q3 2021.

According to IPSE, this represents a doubling of income since the start of the COVID-19 pandemic in Q2 2020. The rise in quarterly rates has been fuelled by the return of pre-pandemic levels of work in the self-employed sector, with self-employed workers experiencing the lowest average number of weeks without work since Q4 2019. In addition, day rates increased from £535 in Q3 2021 to £584 in Q4 2021.

However, the report has also found that freelancer confidence in the UK economy has fallen dramatically, from -13.2 in Q3 2021 to -19.1 in Q4 2021. This has largely been driven by reforms to IR35 in April 2021, which has remained the biggest detrimental factor impacting freelancers for the second quarter running. However, inflation is also a crucial factor; 81% of freelancers say they are worried about the cost of living and are predicting rising business costs over the next 12 months.

Freelancer debt is also a concerning issue, according to the IPSE report. The data shows that 38% of self-employed workers are in debt, with 16% now accruing debt via credit cards issued in the name of their self-employed business. The number of freelancers who say that they have no business debt in Q4 2021 (59%) is lower than the previous quarter (67%), indicating that the issue is worsening.

Derek Cribb, IPSE ceo, said: "Today's report shows that the self-employed sector is finally recovering after two years' of COVID-19 uncertainty. Work opportunities, day rates and quarterly incomes are soaring towards pre-pandemic levels and freelancers are now able to make a living from self-employment again.

"However, despite this, freelancer confidence has continued to slump as IR35 acts as a sword of Damocles on the industry. The government, therefore, needs to step in and solve the confusion around IR35 if the sector is going to reclaim its position as one of the most dynamic and innovative parts of the UK economy.

"Self-employment can be a driving force for economic growth but if it is to realise its full potential, the sector must be supported by government policies that seek to encourage, not hinder, it's natural vibrancy."

Written by Rachel Miller.

Stay up-to-date with business advice and news

Sign up to our lively and colourful newsletter for new and more established small businesses.

Contact us

Make an enquiry