My Money: Issue 5 by My Money Magazine

Earning the dough: Dave Ferguson on how he went from an electrician to a baker p11 Summer time prep: How to budget for the quieter periods p15 Deductible expenses: What you can claim the tax on as part of your business p21

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A WORD FROM THE EDITOR | Well it’s that time of the year, the kids are off school, parliament is on recess and everyone is jetting off on their summer holidays. But for freelancers, if they are not taking a break, this time of the year can be tough, and many may find themselves at a loose end. Our latest edition of My Money looks at how you can not only prepare for this dry spell, but also things you can do to help your business succeed. We also cover everything from why you should protect yourself and your business with professional indemnity insurance to the expenses you may not have known you could claim for.

EDITOR Jyoti Rambhai

HEAD OF MARKETING Toby Tetrault DESIGN & ARTWORK Marty Harling-Coward

PARTNERS SJD Accountancy | Aon | John Charcol | Farillio

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IPSE does not necessarily agree with, or guarantee the accuracy of, statements made by contributors or accept any responsibility for any statements which are expressed in the publication. All rights reserved. | This publication (and any part thereof) may not be reproduced, transmitted or stored in print or electronic form, or in any other format, without the prior written permission of IPSE. | IPSE, its directors and employees have no contractual liability to any reader in respect of goods or services provided by a third-party supplier. 2

contents Interview - The big ten Jan Zalar is a freelance second assistant director of TV and film. My Money caught up with him to ask our top ten questions on life as a freelancer. p5 Interview - David Ferguson If you can imagine it, chances are David has doughnutted. We speak to electricianturned-baker about how he made his side-hustle into a thriving business. p11

Business Digital nomad Mark Williams gives his top tips on how to travel the world while you work. p18 Explainer - Tax deductible expenses Being self-employed means that you can expense most things you need to run your business, but what are they exactly? p21

Wellbeing How collaborating with other freelancers can be a great way to ease stress. p23 Shared parental leave

Why the self-employed should be entitled to this benefit. p32

MORTGAGES WhenÂ is the right time to sell? Has Brexit affected the property market? p35 Business - late payments Top tips on what you can do to help ensure your clients pay you on time. p38

Insurance Have you protected yourself and your business against negligence claims? p41

Front Cover Sakina is a plant lover illustrator livingÂ in London. She loves to represent the world around her using a cheerful palette with a positive and motivational message. website: heyimsakina.com instagram: @heyimsakina

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By Faye Newman

Interview

the big

JAN ZALAR is a freelance second assistant director of TV and film. His main job is to look after and coordinate the actors and extras, as well as making sure everything runs smoothly behind the scenes on a film set. As someone who is essentially the bridge between the director and the rest of the crew, Jan explains how he needs to be “on top of anything to do with logistics and organisation”. My Money caught up with Jan to ask him our top 10 questions about his life as a freelancer. Faye

How would you define financial success?

Jan

Financial success to me is being in a position to pick and choose my jobs and not having to accept the first offer that comes in. Ideally, I’d also love to be able to pay off my mortgage early while also enjoying a couple of holidays a year.

Faye

What’s the hardest thing you’ve learnt about money along the way and how did you deal with it?

Jan

I’ve found the more you earn, the more you seem to spend. However, buying a property and getting married in the last year might have something to do with that! I’m afraid I still haven’t got a strategy on how to curb this talent I have for spending money. M y

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the big

Faye Jan

If money were no object, what would you treat yourself to right now? A big house in the Cotswolds with no neighbours within 10 miles of me and my wife would be perfect.

Faye

If you could donate to any cause, what would you choose?

Jan

There are so many causes that are deserving of a cash influx, but I think Whizz-Kidz, who provide disabled children with essential wheelchairs and other mobility equipment, would be my first choice.

Faye Jan

How easy was managing your money when you first started your business? When I started out, I struggled getting work as the film industry is an extremely saturated and competitive market. My first few jobs were unpaid, with the production company only covering my expenses, which was obviously hugely challenging. Luckily I have very supportive parents who let me live with them rent-free at the time, which enabled me to continue working in the industry until I got enough experience to get paid jobs.

Faye

Do you have a favourite finance book, website, app, or similar? And how has this helped your business?

Jan

I must say I’ve never used any kind of finance book or app.

never turn down any work when the next 6

Faye

Who in your life has taught you the most about money?

Jan

My dad has probably taught me the most about money as he was a freelancer himself. His advice was to never turn down any work as you never know when the next job offer will come in.

Faye

What was the first thing you bought when you got paid for the first time?

Jan

Probably a pint of lager and some tequila shots.

Faye

Would you say you’re driven more by money or love of your work?

Jan

My job is full on a 70-hour week is the norm. I wouldn’t be able to commit to those hours if I didn’t enjoy it. However, getting a payslip on a weekly basis certainly helps me get up in the mornings.

Faye Jan

What is your top financial tip for a freelancer just starting out? If you’re determined to succeed, make sure you’ve got a bit of cash saved up as you’ll inevitably have to take some knock-backs financially in the short-term before you make a success of your freelancer career. Either that, or make sure your parents will let you stay with them rent-free.

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How remote working is changing lives

By Tristan Grove

Business

Out of office experience:

RIGHT now, more and more people are leaving the daily office grind for a better working life. And nowhere more than among the self-employed. A report by the Association of Independent Professionals and the Self-Employed (IPSE) and People Per Hour found that almost 90 per cent of the self-employed have worked remotely in the last year. But where are they working? And is it really the dream people imagine? Well, according to the report, titled Remote Working: Freedom and flexibility for the Self-Employed, surprisingly little of this remote working is done at the ever trendier co-working spaces springing up across the 8

UK. In fact, only 13 per cent of self-employed people said they had worked at a co-working space in the last year, while 97 per cent said they had worked from home. Interestingly, the second-most popular choice was a public place (32%), and 24 per cent also said they had worked while traveling. A life less ordinary So, how about the benefits? Is leaving the 9-5 grind as much of a dream as it sounds? The study asked freelancers for the main reasons they preferred to work remotely, and there were some strong arguments for it. Top of the list: 55 per cent of freelancers said the flexibility of it was the biggest draw.

like they weren’t part of the team, 19 per cent said they felt lonely and another 19 per cent said they felt disconnected. If these are the big challenges of remote working, then, what can be done to overcome them? Well, the report has a few recommendations. Interestingly, some of the biggest challenges – especially loneliness and the feeling of disconnection – seem to arise particularly from home working. The report therefore recommends promoting co-working spaces because they “can play a significant part in combating isolation and loneliness”. After flexibility, freelancers also said they valued remote working because it allows them to save time (43%), improve their work-life balance (41%) and save money (27%). Around 20 per cent said they preferred remote working because it let them spend more time with loved ones and reduced their stress levels. Many people who said they work remotely said they spent two thirds of every week away from the office. The rest of their time is generally spent at their clients’ premises. Perhaps most tellingly, almost half of all the survey respondents (45%) said they wanted to spend more time working remotely, while only 16 per cent said they wanted to do less. Not just a bed of roses As you might expect, being out of the 9-5 office grind is obviously very popular. So popular that one in five freelancers surveyed said they didn’t face any substantial challenges at all. How many office workers say the same? Remote working isn’t all a bed of roses, however, and it’s important to consider the challenges too. So, what are they? First, 28 per cent of freelancers said they struggled to get clear communications from their clients, while 27 per cent said it was a challenge to get regular feedback on their work. More worryingly, it seems remote working – especially at home – can take an emotional toll on freelancers. More than a quarter (26%) said working from home meant they felt M y

One way the report suggests promoting co-working spaces is extending the small business rate relief to workhubs. It also calls on local government to do more to publicise abandoned spaces and empty buildings that could be converted into co-working spaces. The other main challenges the UK’s growing army of remote workers face are broadly to do with communication: connecting with their team and getting feedback from their clients. That’s why IPSE and People Per Hour also call for measures to make sure clients are giving freelancers the communication channels they need. “Clients,” they argue, should “ensure they fully understand the needs of self-employed people and are flexible enough to accommodate them.”

Broadband was overwhelmingly the most important factor for freelancers. In fact, the next most significant factor, access to office equipment, was miles behind at 52 per cent. After that came clients being easy to contact (36%), having access to the right tools (35%) and having clear deadlines and expectations (33%). With broadband out so far ahead, the report also urged the government to ensure access to super-fast broadband all across the UK, without exception, by 2020. Remote working is obviously a surging trend, whether it’s from home, a hipster co-working space or even the local greasy spoon. And wherever people are remote working, they seem to be happy with their out-ofoffice time: in fact, 93 per cent of remote workers say it enhances their freelancing experience. So, if you’re one of the UK’s ever-growing population of freelancers, the only question is: what are you waiting for?

Bring on the broadband It’s not just overcoming challenges: with remote working clearly so popular and beneficial for the self-employed, the report also looked at ways of opening it up to more people. It asked freelancers across the UK about the key ways of enabling remote working. Almost 80 per cent said one of the most important tools was good broadband.

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Interview By Faye Newman

Re a

e ak

a e dy, t s , y b

WHEN you think luxury, ‘doughnuts’ don’t tend to be the first thing that comes to mind. But now, David Ferguson is setting out to change that with his business Be Right Bake. Oreo doughnuts, delicate fresh summer fruit doughnuts, brioche doughnuts, Jammie Dodger doughnuts — if you can imagine it, he has doughnutted it. (And even in the case of the ‘hyper Galactica glaze vegan doughnut’, things you can’t imagine). Marc Anthony once said, “if you do what you love, you’ll never work a day in your life,” and this is true for David. I sat down with him to find out how he turned his hobby into a successful career.

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David trained and worked as an electrician but in 2012, he discovered a passion for baking. While working full-time, David not only saved what he could into his Be Right Bake fund, he began retraining as a chef. And during that time, he started experimenting on the side, baking for his friends and family before catching his big break. He officially launched Be Right Bake as a business in 2017 and it wasn’t long before he was discovered by online platform, Culture Trip. His mouth-watering doughnuts were filmed and within 24 hours, the video went viral, getting more than 1.5 million views. It was at that moment David tells me that he realised Be Right Bake was more than

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just a hobby. So, he pushed his toolkit aside and got his whisk ready, as hundreds of people flooded his social media page asking for collaboration opportunities, including big-name brands such as Topshop. The South Croydon-based baker says: “When my video blew up on Culture Trip, collaborations were coming left, right and centre, which allowed me to be blessed with choice, and it would be silly to say no.

He explains: “I added syringes to allow people to tailor their doughnuts to their taste buds”. These were immediately picked up by the Instagram community and so with tag after tag coming up, he realised their popularity. That’s right – these doughnuts come with syringes filled with a number of yummy flavours, allowing you to inject the filling of your choice.

“The greatest success so far for Be Right Bake was probably when we were given the chance to have a pop-up in Topshop’s flagship store in Oxford Street. This is really what made the business grow and gave me the reassurance that Be Right Bake could be a huge success.”

With the video drawing so many people to his social page, the problem wasn’t finding collaborations, it was finding the ones that would work best for the brand. And this is how he discovered one particular gap in the market.

David’s innovative thinking allowed him to stay competitive with the big brands, because as you’ve probably guessed by now, these doughnuts have a slight twist.

Many gyms were reaching out to him for cheat day treats and this sparked an idea – gym disks, a protein based doughnut – a specially formulated treat created by David. That’s right – a doughnut

for fitness fanatics to delve into. It is “the perfect combination of naughty and nice”, he says. When it comes to collaborations, David tells me: “In all honesty, I never know if they are the wrong or right person to work with. I think I have been rather lucky, as the people I have worked with have always come to the table with the right energy and always seem to love what I do. So, I guess that’s a good thing to look for – someone who is just as passionate about what they do as you are.” Understanding his audience has always been a huge factor for David as this was how he was able to tailor his treats for a variety of consumers and as a result, his business is booming.

Be Right Bake making an impression at a wedding celebration David Ferguson’s illustrative avatar fully encapsulates the essence of his brand

His delicious treats don’t stop there – he is constantly thinking outside the box and introducing new and fun things to his menu. Be Right Bake is taking South London by storm and he is now preparing for doughnut domination. So, how does he benchmark his success? “I benchmark how well I am doing by my delivery zones, which can be tricky because there is such a high demand and only me here. But I know my limits so I am simply tackling one area at a time. “I personally measure my own success by being able to create jobs and give back. People being able to see where they started and where they are now. I hope that it gives them a push to go out and start a business of their own.”

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David admits he had his doubts about setting up a business, particularly because he is dyslexic. He explains: “I didn’t even think it was possible at the start but working hard and asking for help in the areas that I found difficult was key to being successful. “The other most important thing is to believe in yourself.” So, what’s next for Be Right Bake? David does hint to me that he has some very exciting collaborations coming up, including one with burger chain, Black Burgers. Watch this space.

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modern work

Now in print andÂ online Pick up your copy from a co-working space or read it online atÂ modernworkmag.co.uk

FLUCTUATING income can be burdensome for many freelancers. And while even the best made plans are not foolproof, there are some mechanisms you can put in place to create some form of a stable income. When the work just isn’t coming in, it can be tempting to throw in the towel and start scouring the job boards. But it’s important to remember that quiet periods are a normal part of freelancing – especially in the summer. What matters is how you deal with them. Downtime can be a welcome opportunity to work on your business (or even join your clients in hitting the beach and putting the out-of-office on). If you’ve prepared financially for quiet spells and planned around them, you see them in a totally different light. With that in mind, here are a few tips to help you budget for the summer. Treat freelancing as a business You might be dabbling in freelance work alongside a full-time position. Or maybe you’ve made the leap to become your

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own boss. Whatever the case, treat your freelance income as a business: set up a dedicated bank account. Receiving payments directly into your personal account contributes to a ‘feast or famine’ mentality. You’ll feel brilliant when money is rolling in, but in the months when it doesn’t, you’ll be tempted to panic. Instead, set up a business account so you can separate your personal finances from your freelance income and expenses. It will help you develop a clear overview of your true earnings so you can spread money over the quiet periods. It also makes tax and accounting a hell of a lot easier.

Business

Summer is often a quiet period for freelancers, so Kelly Gilmour-Grassam gives her top tips on how to budget for this time

By Kelly Gilmour-Grassam

‘What matters is how you deal with the dry spells’

When you begin to have an idea of what’s coming in over time, you can set yourself a salary that’s realistic and pay yourself a set amount monthly too – just like you would with any ordinary employee. So even if the business has a quiet month, you’ll know you can depend on a stable income. Give yourself a ‘run rate’ Once you’ve got the business bank account in place, it’s easier to start building a rainy-

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day fund. Find out what your ‘run rate’ is so you can tick along nicely without having to dip into your personal savings to keep the business going. Take some time to identify how much you need to live per month and try to keep at least three, but ideally six months’ savings in the bank to cover your costs. This provides you with a crucial financial cushion to fall back on whenever times get tough. Too many freelancers live on the edge during the quiet periods, but it doesn’t need to be this way at all. Be honest with yourself and conduct a proper financial evaluation of the money you need to keep going without getting yourself into difficulties. Don’t forget tax Tax is perhaps a freelancer’s biggest pitfall. When you first start out, nobody ever warns you about having to produce a tax return yourself. Every year, you need to complete a self-assessment. This can be filled in and submitted online. Then you’ll need to pay your tax bill, which is normally split into two payments six months apart (the first in January, and the second in July).

Again, a dedicated business bank account can help here – make sure you set aside a little money every month to cover your tax liability. Putting aside approximately a quarter of your gross earnings each month is usually a good benchmark. If you’ve never done a self-assessment before or your earnings have changed considerably in recent weeks or months, use the tool on the gov.uk website to calculate your income and gain an insight into what you might owe. Of course, it’s worth pointing out that a limited company has additional responsibilities (including the company tax return, annual accounts and VAT returns if relevant). Forecast your cash flow Freelancing is sometimes unpredictable, but there are regular events that you can more easily anticipate. For example, the summer and around Christmas. If you typically experience downtime, it is worth preparing yourself financially by forecasting your cash flow. Map out your monthly income and expenses and see what you’re expecting to fall into your bank account in the coming months. Make sure any big outlays (like tax or membership renewals) are included so they don’t creep up unexpectedly at a time when cash is tight. Account-

“Too many freelancers live on the edge during the quiet periods.”

ing software can often do this automatically – which saves you a huge amount of time and the effort of working in Excel. Looking ahead lets you plan accordingly, so you know when a quiet period is on the horizon. Not only this, but if you know when your high-earning months are, you can be smart with any payments or investments. Grow a retained income Client demands may be seasonal, but that doesn’t mean your income should be. If you’ve got a client that you’re doing regular ad hoc work with, float the idea of taking them on a retainer. This way, you always have a steady flow of work coming in on a monthly basis, which is absolutely pivotal during those less busy times of year. Instead of killing time in the kitchen, you’re beavering away at business as usual. Don’t be put off by proposing retainers to clients either. Remember: it benefits their cash flow as well as yours. They’ll know exactly what they need to pay each month and what kind of work they’ll be getting in return.

Tips for keeping business coming in There’s no way to guarantee high income all year round when you’re freelancing. Some months you’ll be stacked, others you’ll have finished your entire day’s work before breakfast. What you need to keep in mind is that when things are quiet, you should never just sit around twiddling your thumbs. Be productive. Use these times to make sure your accounts are in order and put out your new business enquiries. Network at local groups and get your face out there. Chase up on any projects that have been left on the back burner. Work on your monthly, yearly or five-year plan. Explore ways to diversify or make your service stronger. Keep your website and social accounts fresh and consistent to encourage people to get in touch, and establish a clear, recognisable brand identity. Freelancing is exciting, but it’s rarely a breeze. The good news is that smart budgeting can make all the difference. Manage your money right, and you’ll not only survive the quiet periods, you’ll learn to love them too.

With retained income, you have that important sense of security you need to plan for the future.

“Client demands may be seasonal, but that doesn’t mean your income should be.”

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Business By Mark Williams

How to make the whole world your office Avoid the pitfalls and embrace the life of a freelance digital nomad

IMAGINE a lifestyle where you could travel wherever you please, whenever you like. Whether it’s Boston or Cancun, Bali or Crete, freedom from the constraints of the office is, for many of us, the dream. Turning that dream into a reality may not be as far-fetched as you think. It’s never been easier to become a freelance ‘digital nomad’, working for UK clients from the most far-flung beaches of the world, thanks to cloud-based productivity tools like G Suite, the rise in popularity of online freelance marketplaces and cheaper long-haul flights than ever before. Sound good? Then get packing. Here’s what you’ll need to get started.

1. A BUDGET Nobody wants to be stuck on the wrong side of the world with empty pockets. So take some time to work out how much you’re likely to spend in each destination. Booking.com can give you a good measure of accommodation prices, while Nomad List approximates the cost of day-to-day living (with tons of other info too) in hundreds of destinations around the world. Travel blogs like Nomadic Matt are also handy to offer a real-world account of how much you’re likely to need. Budget a little more than you anticipate spending, just in case, and ensure you have enough to live on that budget for at least a month or two in case projects dry up.

2. A PROFILE ON A FREELANCE JOB MARKETPLACE SITE Whatever your skill set, freelance jobs marketplaces are the most plentiful source of remote work. Sites like Upwork and Fiverr are like an eBay for jobs: a potential client posts a project, then freelancers bid for the work with a short covering letter and a proposed rate and terms. While the quality of work (and remuneration) on offer can sometimes vary, these two sites are where you’ll find the most projects you’d probably want to work on. Just like networking back home, relationships built on Upwork or Fiverr may bear more fruit than you expect; what began for me as a four-week Upwork project in 2017 resulted in a yearly retainer contract and remains my full-time, remotely based contracting gig. 3. A LOCAL SIM CARD Mobile data makes freelance life in an alien country a heck of a lot easier: Google Maps will no doubt help you find your way around and when decent wi-fi is hard to come by, your phone’s personal hotspot can be invaluable to get some work done too. But, of course, if you’re outside the EU, that convenience can come at an eye-watering cost when the next phone bill comes through. So, it’s best to pick up a local prepaid SIM card with a data bundle included; you can usually find one in airport arrivals for just a few pounds. If

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your phone is locked to your home network, or you need to keep your normal SIM free for client calls, an inexpensive mobile wi-fi device will do the trick just fine. You simply put any SIM card in, switch it on and off you go. I use Huawei’s E5330 (£27). 4. A DEBIT OR CREDIT CARD WITH FREE OVERSEAS WITHDRAWALS The costs can quickly mount up without one, particularly in countries where card payments aren’t yet widespread. In Thailand, for example, where cash is king, all ATMs charge 220 Thai Baht (£5.37) for withdrawals with a foreign card. Let’s say you bank with HSBC: that £5.37 comes on top of the bank’s two per cent overseas cash fee and a 2.75 per cent non-Sterling transaction fee – which means the fees on a £100 withdrawal total a whopping £10.12. Fortunately, a whole raft of ‘neobanks’ – that is, 100 per cent digital banks accessed via app – offer free overseas withdrawals and an easy set-up. Check out Tide for accounts specifically designed for small business owners. Monzo, meanwhile, is one of the most popular providers of digital current accounts. Both charge only minimal fees, if any at all.

ners of the world, however, can be less accommodating. I won’t soon forget spending 45 minutes running around the sweltering streets of Colombo, Sri Lanka’s capital, trying to find somewhere – anywhere – to sit down and connect to some wi-fi for an imminent client Skype call (ultimately paying about five times the going rate for a coffee in a pretentious hotel lobby). So take a look at coworker.com for a directory of thousands of co-working spaces all over the world and, around half of the spaces listed offer free day passes for you to try before you buy. 6. TRAVEL INSURANCE The costs of an unexpected hospital visit can be sky-high in some parts of the world, so you’ll need a comprehensive travel insurance policy with gadget cover included. It’s probably simplest and cheapest, if you’re not planning to visit North America, to opt for an annual ‘Worldwide excluding Canada, USA and Mexico’ policy, which gives you the flexibility to change your itinerary with a reasonable upfront premium. THE BOTTOM LINE So, you’re all set and ready to go. Now it’s just a question of deciding where – and the world is your oyster!

5. A CO-WORKING SPACE Locating a place to set up shop in Western cities – be that a coffee shop, café or library – is rarely a challenge. The less developed cor-

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Therefore, the government allows for certain costs which can be deducted from your tax contribution. These must be important to the running of your business and preferably only for use in your working life. There have been calls for the government to review these costs so that they take in a broader range of expenditures. The self-employed live quite different working lives compared with employees. It can be harder to access childcare or even secure a mortgage. There is a feeling that the government could do more to support these needs and reducing the tax burden of these costs could really help. However, you are already entitled to a broad range of expenses covering everything from bills and travel to advertising. When you are calculating your tax return, there a range of items and costs which you can offset against your taxable profits. This can be done by working out the tax on the full or partial costs of using a particular item or service. Then, work out how much you actually use and file for tax relief.

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Status - Sole Traders If you are a sole trader, you can claim on the costs of something you use both for private and business reasons. The best example is a mobile phone. If you have a phone bill of £50 per month and use it for work purposes in the daytime on average five days a week but use it personally the rest of the time you can claim back a proportion. Realistically in this example you could claim two fifths of the overall cost for business expenses – £20.

By Ryan Barnett

IF YOU are self-employed, you are running a micro-business. Businesses incur costs: you pay for things which are vital for running that business. In the case of freelancers, these can be different to a typical business.

Explainer

Tax-deductible expenses

Here are some other areas you could be saving money on: 1. Staffing If you subcontract work out, pay bonuses or have a pension, tax-deductible expenses (TDE) apply. 2. Clothing Protective clothing, uniforms and even costumes, if you are a self-employed actor, count for relief. Just try not to claim on your wedding dress or a new pair of trainers. 3. Travel This is especially important for many selfemployed people across the UK. You can claim on travel costs, parking, insurance cover

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and repairs. You can claim on your petrol and even on your hotel and food if your trip includes an overnight stay. However, you cannot claim for standard travel to work, for instance your train fare to work at a client’s office. 4. Offices and property You can claim on stationery (including postage and printing) and computer software. In the case of software, this has to be anything which you use for under two years. However, if you renew a licence yearly, such as a computer security package, you can claim relief on this when you renew. 5. Working from home If you are working from home, you can claim for tax relief on a proportion of the costs for running the home. For instance, council tax, heating and especially your internet or electricity costs. If you have an office in your home, you could for instance deduct the tax from the proportion of the property that the house occupies. There is also a system of ‘simplified expenses’ which can be applied as a flat rate to vehicle use or working-from-home expenses. This process is simpler and takes up less time. The government has a simplified expenses portal on its website. 6. Claiming on finance This is very important. You have the ability to claim on bank charges, including loans and overdraft charges. If you are only using cash-basis accounting, there is a limit of £500. You can also claim on debt, if for instance, they relate to fixed assets, such as leasing of machinery or land. 7. Other If you resell stock or something else relating to your business, you can claim the tax back on this too.

Website costs, organised mailshots, advertising and even membership fees to professional organisations relevant to your work, can also qualify for relief. Status - Limited Companies There is a different rule if you run a limited company. Business costs can be deducted from your profits prior to paying tax. These must then be reported as a company benefit. If this is the case it is best to seek the advice from your trade association or a professional adviser to see exactly how this applies to you. Remember, keeping your records and falling in line with your articles of association will be paramount in any decisions you take. Be sensible You are self-employed, and therefore you’re used to dealing with red tape, and are aware of the importance of your tax return. In the case of TDE, you need to be extra diligent. Keep your receipts safe, get together a simple, but organised record-keeping system and take note of everything you do. You do not have to send in proof of what you have spent to HMRC with your tax return. However, you may be asked for it afterwards. You have a much stronger case for getting some tax relief if you can prove your expenditure. It is good practice to keep detailed accounts and receipts of any business purchases anyway. General practice is to keep them for about eight years. During harder times, or when you are first starting out, these processes can be burdensome. However, tax relief can make a huge difference to the profitability of your business. Therefore, it is important you find out in case you’re missing out.

Sponsored Content - By Alison Hadley

Why collaborating with another freelancer may be the answer?

Wellbeing

Fully booked and feeling overwhelmed?

THE unpredictable feast or famine cycle for freelancers can be tricky at the best of times. If you have been feasting on an all-you-can-eat buffet over the last several months and the work is set to continue, congratulations! Word has got out about how brilliant your work is. Or, have you become the victim of your own success? M y

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We tend to think that being busy is the ideal situation to be in. However, there’s a difference between busy and being overwhelmed. So, if this epic feast is making you feel sick in the stomach; if you are stressed, exhausted and now dreading your working day ahead, then it is time to come up with a new strategy, before it potentially leads to burn-out. M a g a z i n e

I tell my clients to outsource work to another business in busy periods or on a regular basis. It can be an effective way to maintain your business at its current pace, or to grow it so that you are able to take on more clients or projects. Overall, once you find the right type and level of support, outsourcing can give you more time, additional headspace, and even increase your income. You might choose to: 1. Outsource aspects of your business that you don’t particularly like or are not in your particular area of expertise. For example, if you work in graphic design, you could outsource bookkeeping. 2. Outsource regular work to a freelancer who is charging a lower rate than yours. This means that you don’t have to turn away work and over time, you will have the real potential to scale your business. For example, if you are a strategic PR consultant, you could retain a PR freelancer. 3. Outsource work to another skilled freelancer in your industry who is offering complimentary services. For example, if you work in marketing, you could outsource SEO work to a specialist in this area.

Do you still need convincing that outsourcing can work for your business? Collaborating with other freelancers can bring additional benefits such as feeling supported by a team and being able to bounce ideas off each other, which can help to keep your work fresh and therefore deliver the best results for your clients. Are you too busy to even think about what and how you might outsource? Outsourcing is an investment, so taking a bit of time now will benefit your business in the long-run. Are you worried about giving up control on your projects? Start small. To minimise both reputational and financial risk, initially outsource low-risk tasks and as your relationship grows and trust builds, you will have the confidence to brief in bigger items of work. Alison Hadley is a marketing and PR freelancer who works with marketing consultants and PR consultants on a flexible outsourced basis when they want to scale their business. Details: alisonhadley.co.uk

Ask Iona

How should you prepare for the summer lull? All freelancers know what it’s like to go through a lean patch. But if there’s one time of year that’s almost guaranteed to be quieter if you’re self-employed, it’s the summer. It’s not called the silly season for nothing! There are exceptions: for freelance wedding photographers, summers are non-stop. And freelancers often pick up work covering for full-time employees who go on holiday.

By Iona Bain

But even I have noted my diary is a bit ‘gentler’ than normal over the next few months. But I see no reason to panic. Summer presents a great opportunity to make progress on other projects - so long as you have secure finances underpinning it all. So, here’s to how smooth your cashflow and counteract any lull in your summer work schedule.

1. Prevention is better than a cure. It’s obviously wiser to plan for lean periods than to tackle them when they are suddenly here. So, get in the habit now of saving some of the cash you earn from larger projects and building a roster of regular clients over time. Just having a few dead certs in your diary will do much to ease your finances (and stress levels). But if you find yourself short of prospects, there’s only one thing for it… 2. Hit the phones! Actually, call up your best clients/contacts and ask what you can do for them right now. An email can be easily ignored, a phone call less so. But only take on as much work as you can handle. Expect a low hit rate but be prepared in case most (or all) of your approaches land. 3. Market yourself. Start a company blog and a regular social media schedule if you haven’t already. Or update/overhaul your website if it’s looking a bit tired. 4. Organise your finances. Get ahead of the tax rush by tidying up and digitising your receipts, checking whether you have any outstanding invoices and re-examining your rates: have they kept pace with inflation or the market? Has your stock risen in recent times? And maybe you can upgrade your financial set-up. There are several new freelance finance systems on the market to consider, such as Coconut and Albert. 5. Finally, embrace the quiet. Take that course you’ve been putting off. Go to more networking events. Or, in my case, finish writing that book!

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Interview By Christina McLean

Stand out from the crowd by putting yourself forward for an award

YOU’VE just sat down at your desk for the day. Bleary-eyed, sipping the morning’s first coffee and checking your emails, the idea of winning an award for being self-employed is probably the furthest thing from your mind. “When you’re self-employed, it’s very easy to keep working away without taking a moment to stop and consider everything you’ve achieved and all of your successes,” explains Harvey Morton, IPSE’s Young Freelancer of the Year 2018. “Applying for awards allows you to see every success you’ve had, all the projects you’ve worked on and how far you’ve come.”

Awards are of course great when you win, but even just the process of getting your thoughts down on paper allows you to evaluate your achievements and see where you might like to take your business. Being shortlisted or even winning often ends up becoming an added bonus. “It’s a great way to differentiate yourself from competitors,” adds Chris Pipe, IPSE’s New to Freelancing 2018 award winner. “Being shortlisted is a great marketing tool, which can raise your profile and increase credibility. As freelancers, we have to be creative in exploring ways to market ourselves, to stand out from others in the industry.” So how did last year’s awards winners spend their prize money?

Harvey Morton, Young Freelancer of the Year 2018, winner of £3,000 For a while, I had been unhappy with my brand – it just didn’t reflect me as a person and it was really corporate. I’d been pushed into branding myself as a company rather than an individual, so I invested my prize money in a complete rebrand. I had always created all my branding myself, but the prize money allowed me to hire a graphic designer, copywriter and videographer. The main service I provide is social media management and I’m often complimented on my creative writing, but I found writing for my own website to be very challenging.

It made a huge difference – my first employee came on board in January 2019. This has now allowed me to concentrate on running the business and being a freelance non-salaried planning inspector for The Planning Inspectorate, which is an executive agency, sponsored by the Ministry of Housing, Communities & Local Government and the Welsh government. Iona Bain, Freelancer of the Year 2018, winner of £5,000 I invested some of the money in redesigning my website, and I actually enlisted one of last year’s shortlisted freelancers, Leah Layzell, to do the job for me. I was thrilled with the end result and am confident that Leah’s amazing work has really upped the quality of work that comes my way.

Being able to work alongside other freelancers allowed me to see my business from a different perspective and I’m now really proud of the fun brand we’ve created. I also invested in a new website and everyone always comments on my branding when working with me now. I’ve also been able to get another set of hands to help me out during my busiest periods, which has taken a lot of pressure off me.

I also invested some of the money in camera equipment so I could diversify into YouTube. Launching a YouTube channel is tough these days as it’s a competitive space, but it’s crucial to move with the times. While Young Money Blog will be always be the fulcrum of my career, I do feel video is the new frontier in young money journalism. I also invested in a subscription for a co-working space so I could work away from home when I needed a change of scene. If you need a bit of encouragement to start putting yourself forward for awards, take Iona’s advice:

Chris Pipe, New to Freelancing winner 2018, winner of £3,000 I provided a graduate town planner with a fixed-term internship. I wanted to test whether the business was in a position to take someone on permanently and part of my business plan is to assist in supporting graduates in the town planning field. The prize money enabled me to explore both.

“You have to put yourself forward for opportunities like this because (a) others are unlikely to do it for you; and (b) it’s a crucial way to signal your success to everyone – existing and potential clients. “Plus, show all your peer group and loved ones that you value your work. Even if you don’t win, the process of evaluating your achievements will provide you with a huge morale boost. It’s good to take a step back once in a while and celebrate what you’ve achieved.”

The investment was a great way of looking at the sustainability and growth plans for the business with the least possible risk. While I’m not risk-averse, I needed to make sure that not only the business needs could be met, but also that the business was stable enough to support someone else.

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Business By Tim Bradburn

DO YOU have an idea you can´t stop thinking about? A nascent business, a venture you´re determined to pursue, or a passion project you can´t let go of ? Need more cash to make it happen? Nick Strang was in that situation a year ago. While working behind a bar he dreamt of launching his own community radio station, citybeatradio.co.uk This year, he received funding from the National Lottery to make it a reality. He’s been able to reduce his hours at the bar and eventually plans to work full-time on the project.

Nick enlisted the help of Tricia Gardiner (greenshootsnottingham.co.uk), who works with founders to achieve their funding goals. “A good strategy is to break your venture down into its component parts,” says Tricia. “For example, a radio station is made up of equipment, a venue, and different types of content. “Rather than looking for one big pot of money to fund the whole thing, you can find lots of smaller pots to cover individual items. And you don´t have to think just in terms of money. Someone might be willing to donate the equipment, for example.”

City Beat Radio covers topics such as mental health, the arts and local history, which attract a lot of support. As well as lottery funding, Nick found individuals who were willing to collaborate by providing studio space and even developing the website free of charge. Going forward, there is potential to expand the range of supporters he says, for example, by looking for mental health or heritage trusts willing to fund particular strands of content. Here´s another example of lateral thinking. Lukas Cole had been running music nights for several years and planned to launch the Wigflex City Festival in Nottingham with the help of his partner, Avarni. Lukas had already sold their house to fund the dream and needed to find other ways to raise more money. Their strategy was to expand the concept beyond music, to include arts workshops and family activities during the day, combined with music sets in the evening. By weaving in these different strands, they were able to land £15,000 in Arts Council funding.

Grants and trusts The advantage of a grant is that you don´t have to pay the money back or give away part of your business. A good place to start is on the Arts Council website, which lists a wide range of funding sources. For a list of government grants, try gov.uk. It´s also worth doing a web search for UK grants and trusts. Finally, if you´re planning to start a social enterprise you could try unltd.org.uk, which offers grants of up to £15,000.

Having ‘staked everything’ on the dream, the inaugural year was a huge success. They attracted big-name DJs and over 3,000 people flocked to the festival. They proved that Wigflex is a boost to Nottingham and this puts them in a strong position to apply for larger pots of funding for next year, including £100,000 from the Arts Council, support from the city council and various forms of sponsorship. “Funding is a layering process,” says Tricia. “You start small, and then increase it as you build your track record. One partner can attract match funding from another, and so on.” Wigflex is a for-profit venture, but they are planning to set up a non-profit strand which will enable them to apply for different pots of money not available to commercial ventures, thus widening the net further still. So, if you´re prepared to think creatively and put in the work required, these are some of the things you could consider.

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Loans and credit If you have a good credit rating, you could apply to your bank – most high-street banks offer small business loans if your business plan is strong enough. Some entrepreneurs also bootstrap their start-ups by taking out zero per cent credit card deals. There are cards offering up to 28 months’ interest free. Be careful not to get into a debt spiral though – check out Martin Lewis´s advice on how to do it cleverly on moneysavingexpert.com. If you can´t get a bank loan, try start-up loans, a governmentbacked scheme that lends up to £25,000 to start or grow your own business.

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Sponsorship Do you have a ready-made audience who might be of interest to the right brand? Or could you partner with someone who does? Again, it pays to think creatively. For example, illustrator Emmeline Pidgen convinced Laura Ashley to sponsor her blog campaign ‘What Emmeline wore’, in which she illustrated her outfit every day for one month. The campaign drew over 100,000 views on her blog, which gave a huge boost to her business. Angel investors Business angels are individuals or firms willing to invest money in return for a stake in your business, so if you´re willing to give away a percentage of your company´s shares, this could be an option. You can find a list of investors at seedlegals.com. You´ll need a good presentation to hook them. For inspiration, try googling ‘famous start-up pitch decks’. It´s fascinating to see how companies such as Facebook and Airbnb first presented their idea to potential investors. Your university Many universities in the UK have funds to support promising alumni-led start-ups. So, if you´re a graduate, whether recent or not, it´s worth scouring your alma mater´s website for any potential opportunities. It´s also a good idea to contact any of your old tutors and ask them to point you in the right direction, as funding opportunities can sometimes be hidden in the darker reaches of the institution.

Accelerators There are over 300 accelerators and incubators in the UK. These are structured programmes that help you refine your idea, usually by attending sessions over several weeks, or even years. Most of them are attached to investor networks and successful projects are able to secure investment by the end of the programme. For a list of accelerators try etondigital.com. Crowdfunding There are two types of crowdfunding. One is where you offer equity, via platforms such as seedrs.com. The other is where you offer incentives to people willing to support the project. For example, Sabina Radeva used Kickstarter to self-publish her picture-book adaptation of Darwin´s On the Origin of the Species by offering an autographed first edition, downloadable colouring pages and activity sheets. She raised nearly £50,000 to produce the book, which she would not have been able to do otherwise. The success of the Kickstarter campaign also led to a publishing deal with Penguin Random House and the book has so far been translated into 24 languages. “To attract Kickstarter visitors to your project page it´s important to have stunning graphics, an exciting idea and a well-presented project page with clear goals and budget,” says Sabina. “Visuals can make a big difference. My project made it to the front page partly because of the attractive illustrations. I recommend investing in a graphic designer for the styling of the page. “A professional-looking video is also essential. It can take a month or more to design a good Kickstarter campaign.” Sabina recommends offering early-bird discounts, sending frequent updates to engage backers, and collaborating with influencers to spread the word.

At last, I’ve started my business! I can’t wait to spend all day Googling business law! ...said no business owner, ever

No one starts a business to spend hours a day delving into business law (well, apart from Farillio!)... but that’s often what small-business owners need to do. But that’s where Farillio can help – it’s an online legal platform built to help small businesses like yours go far. “Farillio takes away the danger of a startup Googling [...] and putting their business at risk” Sian Winfield | Co Startup & Go Navigate your business adventure confidently, simply & safely with legal guides, templates, step-by-step checklists, video tutorials & pay-as-yougo access to experienced, friendly experts across the country. “Whether it’s an NDA template, an employment contract, or bespoke legal advice, I know Farillio has me covered” James Keal | InkTrap And it doesn’t stop with law. Farillio joins the dots between law and every other aspect of running your business: marketing, sales, PR, finance, HR, accounting, and so much more...

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Farillio Limited is a limited company registered in England and Wales with the registered company number: 10633658. Its registered office is 101 Finsbury Pavement, London, EC2A 1RS M y

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IPSE Sponsored content by Ryan Barnett, IPSE

What you need to know about shared parental leave SHARED Parental Leave (SPL), introduced in April 2015, was intended to give fathers more time to bond with their children, and to ease expectations on mothers. SPL allows up to 50 weeks of leave – 37 weeks of which is paid – to

be shared by parents if they meet certain eligibility criteria. These are different for birth and adoptive parents. However, the self-employed have been excluded from this, which has effectively left them second class when it comes to childcare.

It’s time the government recognised how important the self-employed are to the economy.

What’s available? Statutory Shared Parental Pay (ShPP) is £139.58 a week or 90 per cent of an employee’s average weekly earnings, whichever is lower. This is the same as Statutory Maternity Pay. When making an application for leave, you must also give your employer more than eight weeks’ notice. It is quite easy to access for employees. You’ll have to provide adequate identification such as a passport and evidence of the birth such as a birth certificate. You’ll also have to provide information about your partner’s employer. Parents can take leave in their child’s first year in blocks and at different times, or double up and take leave at the same time. Leave can be booked in three separate blocks, or in one go. Your partner can do the same. You will need to inform your employer of your initial plan when you apply. However, this can change, and you can alter your planned dates for leave as long as your employer is given eight weeks’ notice. There is also an option to have ‘keeping in touch’(KIT) days, where you can work up to 10 days during your time off to maintain a relationship with the workplace. This is in addition to ‘shared parental leave in touch’ (SPLIT) days. Of course, this too is only geared towards employM y

ees, but there is an obvious framework here for the self-employed.

are stuck in the past and really should come to an end.

The self-employed

“We need more women in the creative industries.

Eligibility for SPL should be extended to the self-employed. It is estimated that this regulatory change would be essentially cost-neutral, as it would merely mean sharing an existing allowance between two people. Government figures released for SPL last year indicated that take-up could be as low as two per cent. This means that there is allocated funding that is not being used. All the while, there is a demographic crying out for this kind of support. It fits in with the kind of policies the self-employed want to see, which would work for them. It is very flexible and has a reasonable cost mechanism which would be easy to enact. Though there has been rapid growth (63% since 2008) in women becoming self-employed, the majority of the sector is male and a balanced method of allowing for parental leave to be shared and accrued is therefore even more appropriate. Last year, Labour MP Tracy Brabin (with support from IPSE) called on the government to extend SPL to the self-employed. She said at the time: “It really feels like the days of introducing employment rights which only apply to those on secure contracts

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“And one way to make that happen quickly is to help new mothers in establishing families with equal parenting roles. This is far less likely to happen if the mothers are required to stay at home with the babies, while their partners go back to work.” It is time now that the government recognises how important the self-employed are to the economy. This measure is cheap, it can help justify a less than successful government policy and support parents. From there, the UK’s self-employed can be confident in raising a family and thriving in their business life – without feeling they need to choose.

We need more women in the creative industries 33

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Don’t let your health take a back seat

Get 2 months free cover* when you buy our business or personal healthcare plan. To find out what is and isn’t covered and to get a quote, call 0800 029 4223** quoting IPSE or visit axappphealthcare.co.uk/IPSE-SME

*The two months cover free offer is for new customers only. If paying annually, you will only be charged for 10 months of cover. If you pay monthly, the last two months of cover will be free. This offer cannot be used in conjunction with any other offer, apart from our 5% discount for paying annually. Offer may be withdrawn at any time. **Lines are open 8:30am-5:30pm weekdays and calls may be recorded and/or monitored for quality assurance, training and as a record of the conversation. The Association of Independent Professionals and the Self Employed (IPSE) are introducing AXA PPP healthcare to provide affordable health insurance. The private healthcare insurance plans are underwritten by AXA PPP healthcare. AXA PPP healthcare is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 3148119. 34 Registered office: AXA PPP healthcare, 5 Old Broad Street, London. EC2N 1AD.

London is at the centre

returned to pre-credit crunch levels, they have often proven to be more resilient than London.

To understand the relationship between Brexit and the property market, we must first remember that London voted to remain in the EU.

Although only 10 per cent of the population lives in London, the value of the property market there cannot be underestimated. Before the referendum in June 2016, house prices in London were rising faster than wages and, as a result, less and less people could afford to buy a property in the capital.

The areas which voted leave have gained a certain confidence in the lead up to the expected exit date. This confidence seems to have permeated the property market in many of those areas. Although transaction levels in those areas haven’t

As confidence in the property market fell following the referendum in London, prices and transaction levels began to fall. These reductions were noticeable but not in free-fall. Those who could afford to buy a property didn’t because of a lack of confidence. There are also other factors that have and are still affecting the London property market. The first is that buying to let is not as viable as it used to be.

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The second is that those who already own a house don’t want to sell as they believe they will not be getting the maximum price for their home. The ripple effect With fewer people selling property in London, fewer are moving out of the city and into the home counties or beyond. This has reduced demand for property in some of those areas and as a result helped stagnate the market.

Mortgages

OVER the last two years, more coverage has been given to Brexit and the property market than almost any other topic. But how are they interlinked? And what has Brexit meant for borrowers?

Partner content by John Charcol

How has Brexit affected the property market? And is now the right time to buy?

However, trading up in a period of falling prices can sometimes be a good idea. For example, if your £300k property falls by 10 per cent then it is worth £270k – a £30k reduction. If the house 35

you’re trying to buy was £500k and has also fallen by 10 per cent, then its price has dropped by £50k, so overall you are up by £20k. What can we expect? If we consider that housing transaction levels in the whole of the UK have been subdued for the last few years, then it’s likely there are lots of people waiting for the market to pick up before they sell or buy. When the press can report such an upturn, we can expect prices to start increasing, particularly as demand may well outstrip supply. But what could the trigger be? There are many families living in properties they feel are too small and are waiting to trade up. Eventually they’ll be forced to sell and buy where they can. First-time buyers have been assisted by the government’s Help to Buy Scheme but that has its drawbacks and they’ll likely look to buy before prices start rising again. These types of purchaser can create what becomes a self-fulfilling prophecy of increasing prices – especially in London.

The other trigger could be Brexit. Not only has Brexit knocked confidence in the housing market but also in many businesses. The UK has low unemployment, modest wage increases and GDP growth that has recently been marginally higher than France, Italy and Germany. Once a Brexit deal has been signed with an agreement around trade, it is likely that confidence levels will pick up.

Now is the time to buy if you’re self-employed The Bank of England has been trying to keep an even keel. Mortgage rates are at the lowest levels ever seen. Interest on two-year fixed rates starts at 1.35 per cent and interest on five-year fixed rates starts at 1.78 per cent.

Stage 3 - ‘Decline’

Many lenders have been looking to lend to contractors and some are happy to accept those who have recently started up. Rather than looking at two years’ worth of accounts submitted to HMRC, lenders are using a ‘dayrate multiplier’ to work out the maximum amount that could be loaned - which usually yields a significantly higher maximum borrowing amount.

But it’s not the same for all self-employed people. Those with complex income arrangements or multiple end-clients remain relatively underserved by mortgage providers. That’s why John Charcol have partnered with IPSE. As an independent mortgage broker, it’s our job to help self-employed professionals with complex situations seize these new opportunities. We’re here to bridge the gap.

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For more information: call 0333 331 7293; or visit charcol.co.uk/ipse

Borrowing at such rates is very affordable and it is good news for people looking to take out a mortgage. However, for lenders it is not such good news. Profit margins remain low and in order to tackle this, many have changed their criteria to attract more applications by volume.

Business Partner content by SJD

Tackling late payments as a contractor IT’S a story that contractors and freelancers are all too familiar with: you complete your contract, you send your invoice, wait for payment, and then nothing. The payment deadline comes and goes, and the money still isn’t in your bank account.

The simplicity of a monthly payday is lost to the self-employed, and instead, you often have a cycle of waiting, chasing and wondering when you’re going to be paid. It’s a frustrating issue – you work hard to deliver your service and you deserve to be paid on time for the work that you do. But despite this, late and unpaid invoices are all too common.

Late payments appear to be a larger issue: according to The Federation of Small Businesses, on average, over £6,000 is left unpaid to small businesses by clients each year. On top of that, a third of payments are late and businesses spend, on average, over a day a month chasing up these invoices. These are staggering statistics that ultimately eat into your business hours and your resources. And despite the worry that many contractors have about disturbing the equilibrium with clients, there are measures you can take to cover yourself without rocking the boat.

If sending a follow-up email is necessary, you should be clever with the timing. Rather than filling their inbox every day, a well-timed reminder once a week could be much more effective. Make your client aware of how much time has lapsed and how long they have left. If it is appropriate, you can make it clear that you will not be undertaking another contract until your outstanding balance is paid. Where possible, seek out individual contact details of the finance team rather than simply sending this to the generic email, as this will make chasing easier. Be aware of your rights

What can you do if you’re the victim of late payments? Sometimes a gentle nudge is all it takes to remind your client that they’ve yet to pay. But this isn’t always the most effective way to tackle the issue at hand. Set your terms and conditions early on A payment policy will help keep you protected as long as you outline your terms to begin with. This should explain how many days you expect to be paid after completing work and your methods of payment. Setting these terms and conditions from the outset gives your clients less room to argue if they believe you haven’t delivered what’s expected. If no payment terms have been outlined, the client usually has an obligation to pay within 30 days of work being completed.

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Luckily, the law is on your side: The Late Payment of Commercial Debts (Interest) Act 1998 offers small businesses protection against late and missed payments. The rules allow you to claim costs outlined in your invoice alongside any compensation. Even if this was not stated in your payment conditions, you could get compensation against public sector organisations and businesses with more than 50 employees. Following recent revisions of the legislation, you can now also claim interest from other small businesses. Interest can be charged on payments starting from the day after the last day it should have been paid (this is currently set at eight per cent of the Bank of England Base Rate).

ployed, the government recently brought in the Duty to Report legislation. Under the law, large companies must publish their payment practices twice a year. This includes the average time taken to pay for work and means that you can take a look at the worst offenders. What tools can you use to your advantage? Use technology to make life easier for you. Where possible, try setting up an automated system to send invoices and notify you once payment has been made. Not only will this reduce the administrative burden and the time spent chasing, but it also gives your clients less wiggle-room when it comes to paying. There is still a long way to go to tackle the poor payment culture in the self-employed sector, so in the meantime, setting measures to keep your business protected can prove to be effective in the battle against late payments. As the UK’s largest specialist contractor accountants, SJD Accountancy are well-placed to support the self-employed with every aspect of your lifestyle. With the guidance of an expert who understands the unique workings of the self-employed by your side, you’ll always have a helping hand with whatever challenges come your way.

In a bid to improve transparency and increase protections for the self-em-

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Representing, supporting and protecting the UK’s self-employed

Member benefits at a glance • Tax investigations cover • Free access to tax, legal and contract helplines • Access to IPSE Rewards

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• Access to pension and life assurance schemes at a reduced rate • Exclusive offers from our range of partners

• Complimentary tickets to our events • Access to Modern Work magazine • Fortnightly newsletter

0208 897 9970

Insurance Sponsored content by Aon NO one sets out to make a mistake in their work, but what happens if something just goes wrong? Or even if a client simply claims something has gone wrong and blames you? Professional indemnity insurance can be important for defending you and your business from the cost of a negligence claim. Consider for a moment… an IT consultant works with a client to develop and implement a new IT system. Unfortunately, the system goes down for a long time and the client loses money. Unhappy, the client blames their consultant for the IT downtime and makes a legal claim

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against them to recover lost revenue. Fighting the claim and paying compensation could cost the consultant thousands of pounds. It’s not just IT that is at risk either: professional negligence claims can affect many different occupations. What would happen, for example, if an accountant made a mistake filing a client’s tax return, which led to a fine from HMRC? Or what if an architect’s drawings turn out to be inaccurate after building had started? Or maybe a marketing company makes a mistake on a client’s brochure that leads to costly reprints?

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Any of these scenarios could not only financially damage the supplier of the service – they could also cause reputational damage. Where there’s blame... In recent years, there has been a big jump in the number of negligence claims against professionals, with clients alleging poor advice or service has led to them losing money. In many cases, these claims may well be genuine, and a real mistake has been made. However, a more challenging business environment has also led to some businesses alleging there has been poor service simply to try and escape from paying a contractor or consultant. That means even if there has not been any negligence, a professional could find themselves having to fight a costly claim as well as losing out on fees for a project. In situations like this, professional indemnity insurance (or PI) is invaluable. PI insurance covers freelance and self-employed professionals against allegations of negligence by their clients.

If you provide advice or work in an area where your actions could lead to a client losing money (anything from IT or telecommunications to engineering or finance), PI could be extremely helpful. In fact, it is as important as other areas of cover such as public and employers’ liability insurance. Stamp of professional approval In some instances, it might be that your professional body – such as the Solicitors Regulatory Authority, or the Royal Institute of Chartered Surveyors – stipulates that you must have a level of PI cover. But even if they don’t, many businesses’ contractual demands insist suppliers must have appropriate PI insurance to protect themselves if something goes wrong. But what exactly does PI insurance cover?

Protect your reputation One major benefit of PI is the reassurance that, if something does go wrong, you will have the financial support to resolve the issue and prevent potentially ruinous damages to your business. In some instances, a good PI policy as well as professional advice and support from your insurer can not only smooth out a troubled relationship with a client, but also help preserve your reputation.

In simple terms, a PI policy will cover your legal costs and expenses if a client decides to make a claim against you over problems with the advice or services you have provided. PI will also cover: • Breach of duty – where you’re accused of breaching your duty of care • Breach of confidence – where you’ve inadvertently given out confidential client information to a third party

Fighting a claim made against you for negligence could be expensive and it could also be a big drain on your time – something which, for a small business, can be just as damaging. Having PI insurance in place will save you the time you might spend defending a claim, so you can get on with the day-to-day work your business demands. PI insurance for freelance professionals is a cost-effective safety net for your business. For further information on the issues covered by this article, please contact Aon on 0333 363 8461.

• Defamation – cover for slanderous or libellous claims It’s important to note that you can still be held liable for work you have carried out in the past even after you have stopped providing services, so it could be worthwhile to maintain PI runoff cover for a period of time.

Whilst care has been taken in the production of this article and the information contained within it has been obtained from sources that Aon UK Limited believes to be reliable, Aon UK Limited does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the article or any part of it and can accept no liability for any loss incurred in any way whatsoever by any person who may rely on it. In any case any recipient shall be entirely responsible for the use to which it puts this article. This article has been compiled using information available to us up to 13-06-2019.

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Did you know IPSE members recieve an exclusive 10% discount* off Office Insurance through Aon?

Call

Donâ&#x20AC;&#x2122;t take the risk, ensure your business is protected

0333 455 2977

Aon can arrange Office products that provide comprehensive cover for your legal liabilities, damage to your property or interruption to your business. Office cover also extends to include damage to documents and, where required for certain businesses, breakdown of any equipment, the cost of legal expenses, and theft by any of your employees**.

to speak to our dedicated IPSE team, or visit

Aon: Protecting the self-employed. Your partner for insurance and risk management. *10% discount on current rates applies to clients who have had no related Office Insurance claims in the last three years, subject to minimum policy premiums and underwriting acceptance. **Breakdown of any equipment, the cost of legal expenses, and theft by any of your employees is available through Office Elite Insurance only. The Association of Independent Professionals and the Self-Employed isÂ an introducer appointed representative of Aon UK Limited which is authorised and regulated by the Financial Conduct Authority. Professional Indemnity Insurance is arranged by Aon UK Limited and underwritten by Maven Underwriters, which is a Managing General Agent operating under a delegated underwriting authority on behalf of insurers. Maven Underwriters is a trading name of Aon UK Limited. FP.ENT.2447.JB 44

ipse.in/aon for more information

Quiz

How can you budget for the summer and quieter periods? a. Plan for the quieter period and give yourself a ‘run rate’ b. Make sure your dip into your savings to spend your money throughout summer c. Just roll with it.

2 3

What percentage of self-employed people said they worked from home? a. 86% b. 72% c. 97%

6 7

In what year did David Ferguson create Be Right Bake?

What does TDE stand for? a. Tax deductible electric

a. 2012

b. Tax deductible energy

b. 2017

b. Tax deductible expenses

c. 2015

What percentage of freelancers said that flexibility was one of the biggest reasons they chose to work for themselves? a. 45%

Can you expense for your work uniform? a. Yes b. No c. Only in some sectors

b. 32% c. 55%

What year was Shared Parental Leave introduced? a. 2013

In relation to crowd funding, what is an ‘accelerator’? a. A programme that helps you refine your idea by attending sessions.

b. 2015 c. 1990

b. A government loan c. An energy drink

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Answer

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Answer: A It’s easy to start a rainy-day fund. Find out what your ‘run rate’ is so you can tick along without dipping into your savings. p15

Answer: C The government allows certain costs to be deducted from your tax. These Tax Deductible Expenses must be vital for the running of your business. p21

Answer: C Flexibility (55%) alongside improving work-life balance (41%) were among the reasons why people chose to become self-employed. p8

Answer: B Shared parental leave was introduced in 2015 to give fathers more time to bond with their children. p32

Answer: C According to IPSE research, a staggering 97% of self-employed people worked from home. Only 13% said they worked at a co-working space. p8

Answer: B David started Be Right Bake in 2017 after a video of his unique doughnuts went viral. p11

Answer: A You can expense protective clothing, uniforms and even costumes (if you’re a self-employed actor). p21

Answer: A Accelerator programmes not only help you refine your ideas, but they are usually attached to investor networks. p28

Get inspired. Learn a new skill. Meet like-minded people. IPSE organises around 100 events every year throughout the UK. These range from practical seminars, workshops, roundtables and webinars, to our annual flagship event National Freelancers Day and the IPSE Awards ceremony. Look out for our MyMoney series starting in October, events designed for both those new to freelancing/ self-employment and the more experienced levels thereâ&#x20AC;&#x2122;s something for everyone!

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