Half of All UK Workers Could Be Freelancing By 2020, Claims New Study.

Ever wondered why there seem to be so few job vacancies, but the number of unemployed continues to reduce?

Well, the answer, as most accountants are aware, is it seems all down to self-employment. Freelancing is becoming more and more popular, and the number of self-employed workers is set to reach record levels by 2020.

So how significant are the numbers here? Well, according to a study by PeoplePerHour, half the working British population could be self-employed freelancers by the turn of the decade. The study claims the self-employed labour market is growing at a rate of 3.5% each year, quicker than any other sector. The growing popularity of the sector for both workers and employers means that if the trend continues nearly half of all people in work will be operating in a freelance capacity in the next five years.

Why is freelancing so popular with workers?

Well, it’s because of its convenience and flexibility. Freelancing has become a much more appealing prospect to experienced professionals with the knowledge and expertise to work for themselves. Improved methods of communication online and mobile telephony means that self-employed professionals can now supply their services to an endless stream of customers worldwide.

For employers freelancing means that costs can be cut dramatically. According to the study small and medium-sized enterprises, (SMEs) can potentially save almost £6,300 per employee per annum by hiring freelance professionals.

As any accountant could tell you the biggest problem faced by small businesses is the inability to maximise capacity. With tight budgets it’s vital to maximise value. That means that waste or spare capacity needs to be minimised. The average waste or spare capacity per day for small businesses PeoplePerHour estimates to be 1.9 hours per person. By hiring freelance professionals as and when required, small businesses could save wages of up to £6,297.17 per employee.

It’s the emergence of the class of workers, known as ‘hyper-specialists’, which increasingly allows flexible businesses to subdivide work into component parts that can then be subcontracted to hyper-specialists globally.

Speaking about the study, Xenios Thrasyvoulou, founder of PeoplePerHour, said:

“The self-employed workforce is growing by the day, and on-demand services are being required more and more.”

  • “Speed and accessibility are today’s buzzwords, and it’s no different when making recruitment decisions. It is literally a whole new economy in the making.”

Have you recently become a self-employed freelancer, or are you considering starting your own small enterprise? If you have you’re going to need specialist accountancy advice.

How can Steven Glicher accountants help you?

Well, that’s simple. We’ll do it by providing all the core start-up business services your company will need.

We’ll help with the tricky matters that often confound new businesses, such as:

  • Tax planning : we can give you advice on the areas of tax planning we feel are likely to be of greatest importance as you start trading.
  • We can advise you on the most suitable form of business structure for your business.
  • Raising finance and business plans: we can help your business by identifying the funding you’ll need, the most suitable sources of finance, the cash-flow projections, the budgets, and the trading forecasts.
  • We’ll show you how to keep your book accurately and up-to-date. We can do this either manually or on a computer, whichever you prefer. We can also advise and train you on suitable accounting software.
  • We’ll help you with business planning and will look at your existing business, identify its potential, and determine the main challenges it will face in the future.
  • We’ll ensure that your business complies with all the relevant statutory notifications. It’s vitally important that you let HMRC know within 3 months of commencing self-employment that you are in business. Failure to do so results in substantial automatic fines. We will help to complete all the necessary forms, set you your national insurance payments and if necessary complete any VAT Registration forms for you.
  • As part of our mentoring role, we can introduce you to local banks, solicitors, and other professionals you may need assistance from in the coming years.
  • We can also set up your Limited Company should you choose to trade through one.
  • We can give small businesses helpful advice on the advantages and disadvantages of VAT, and take care of any issues you may encounter

For more information, call Steven Glicher accountants on 0161 485 8007 or email info@stevenglicher.co.uk.

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