Are you wondering “Should I go freelance in 2021?” This is a guide that is perfect for you.
If 2020 has taught us anything it is that 2021 is likely to be better, hopefully at some point. We’ve been through a lot together – or a lot in our own isolating bubbles. If you can survive 2020 then maybe you should think of taking the bold step to become a self-employed Freelander in 2021.
I did it in 2019 and I can honestly say that I don’t have the option to go back to being an employee. Here are 6 reasons why you should strongly consider making the move of your life!
1. The Freedom To Be Your Own Boss
You’ll no longer be in the position of answering to your supervisors excessive demand and fearing the end of year review. Instead your new boss will be your client and your end of year review consists of them trying to get you to redo work for free and living in fear that they’ll never contract you again. That’s freedom!
2. Get Paid Fairly For the Time You Put In
As a contractor, you’ll negotiate an hourly/daily rate and be accountable for that. Gone will be the days when you can come in late, take 2 hours for lunch, unlimited coffee breaks before you sneak home early, come in hungover the next day and do nothing all day besides wasting time chatting with colleagues or reading reddit all day. Forget the staff canteen, duvet days, training & development, staff parties, paid holidays and wasting time at a three day team building event in the Lake District – these are for company employees only – back to your desk contractor scum!
3. Job Security Is An Illusion
A company can get rid of you so easily – you can be gone in a flash* So worrying about opting of a zero hours contract in a time of unparalleled volatility is a smart move.
*After legal consultations, notice period, redundancy pay, gardening leave, unemployment benefits or a bucket load of furlough cash.
4. Networking opportunities
Now that you are a Company Director you’ll need to get out there and connect. According to plausible numbers, 86% of contractor jobs are secured from people you meet at a speed-networking event in a hotel Conference room. Now, these events might just be filled with people looking for work or looking to sell you something and no actual quality lead is going to turn up to the London & South East Empowering People to Self-Achievement “cocktails, cufflinks and contacts” Wednesday evening event in the Croydon Jury’s Inn – but you never know!
5. Pick and Choose Your Own Hours
Says it all really. Now you’ll be stuck at home on your own or if you do go to an office, nobody will want to speak to you because you are cannon fodder contractor scum. Instead of investing in relationships with people at work and wasting time chatting at the water cooler, you can update your LinkedIn profile to say that you are a focused professional (i.e. billy no mates).
6. Holiday Whenever You Like
Yeah, 2021 will be great for holidays. As soon as the lockdown restricts are eased in August 2021, I bet you’ll secure 6 months of solid work. Summer/ School break holiday? Reserved for staffies with families only. The only time to take a holiday is when you have no work coming in – in which case you’d better be doing rough a camping & foraging holiday because you’ll be broke if you spend too much!
7. Earn More, Pay Less
This is an easy one – whatever the highest day rate you have heard anyone else getting multiple it by 250 (50 weeks and 5 days a week) that’s how much you’ll be making – Loadsa Money!!! £500/day = £125,000 a year minimum.
As a contractor not only can you charge more for your services, you’ll be able to pay less tax due to the LTD company structure but you’ll also learn about paying for our own stationary, office equipment, software licences, professional fees, contractor insurance, VAT, accountancy fees and banking fees and so on. Even better, when the HMRC comes a knocking and declares you in with IR35 you’ll wish you had gone contract years ago!
8. Financial Freedom
Did you know that Limited Companies only pay corporation tax 9 months after their company year ends? And you can sponge off a directors loan to the tune of £10,000? Of course, the money does need to be repaid and all those deductions you made for Hugo Boss suits, Rolex watch for time keeping, company car (Porsche) and a PS5 for each of your kids are annulled and you owe the tax man loads (see BIK sad-face). Also, try getting a mortgage or even a personal loan and watch as your car insurance doubles when you don’t have 3 years of company accounts to show. You’ll be on your SVR before you can say “talk to my accountant!”.
So there you have it; 8 unbalanced and inaccurate reasons why you should take the plunge. You’ll not regret it.
Good luck, GFF.