What
If you’re considering freelancing - rather than committing wholly to leaving your job and building a new business - there’s always the option to start building up your freelancing on the side whilst still employed.
25% of the UK have a side-hustle, and more and more individuals are starting up slowly to understand how it might work, understand the responsibilities, and build up a new business pipeline before taking the leap.
Whilst you’ll need to check your employer’s policies, and you’ll still have tax and reporting obligations, there’s a lower risk if you’re not wholly reliant upon freelancing to cover your full income.
Why
As starting any business comes with inherent risks, jumping in with two feet without having ever experienced freelancing before can be a step too far for many.
Trying self-employment whilst you’re still in employment can create a little safety net, so you’re able to try it out without the full risk of depending on self-employment to pay your bills - and comes with the potential to increase your base earnings.
How
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Check with your employer about their policies on additional employment. Whilst you’re allowed to have multiple forms of employment in the UK, your contract with your employer may have restrictions on what you can do, or have clauses around conflicts of interest.
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You’ll still need to register with HMRC to ensure you’re paying any required taxes and reporting your additional income in a tax return.
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You’ll also need to ensure your work doesn’t interfere with your employed responsibilities, or stretch you beyond your own limits, putting you at risk of burnout.
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Continue to follow the Flightplan, as you’ll still need to establish your business, and build up a work pipeline.
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After you’ve been freelancing for a while, make sure you review your goals and experiences, so you can make a decision on whether you want to continue part-time or take the steps to go full-time freelance.
A word of warning
Our research shows that those who are working in both employment and self-employment at the same time are at higher risk of poorer mental health - as burning the candle at both ends can put at you at risk of exhaustion and burnout.
Of those who were in both employment and self-employment, more than half said they were unable to work at some point due to poor mental health (compared to only 39% for those in regular self-employment), and those in mixed-employment took way less holiday time over the course of a year.
