Are you considering becoming a freelancer? Here are a few things you should know.
Finding a job at this point in time has never been more difficult.
Before the pandemic, South Africa’s unemployment numbers were hovering around 30% in quarter one, as maintained by Stats SA. This number has dramatically increased during the last few months of lockdown, which has pushed South African’s to think creatively about what to do to earn an income.
Whether you are unemployed or simply looking to supplement your income, it may be beneficial to start investigating other options, such as freelancing.
Here is what you should know before getting started as a freelancer:
The gig economy is quickly expanding, this means there are more people plunging into the freelancing space.
There are a number of skills required when becoming a freelancer, such as time-management, financial planning and networking, just to name a few.
When becoming a full-time freelancer, it is also important to remember that you will no longer receive company benefits such as medical aid, pension funds or retirement. All these expenses will be solely on you.
This might sound like a drawback, however there are many benefits of being a freelancer, such as flexible working hours and schedules that match your lifestyle as well as being in complete control of how much you charge for your services. Personally, I feel these benefits alone far outweighs the drawbacks.
That said, there are a few administrative standards you would first have to put in place when becoming a freelancer.
It is vital for freelancers to create contracts between them and their clients. This ensures that both parties have a clear understanding of what the scope of the work would be, how long it would take to complete it and the fees associated with the job. There are a number of websites that offer open source contracts which you can easily tailor.
If freelancers however choose to work with a platform such as GigMastery.com, there is no need for contracts as the platform acts as a mediator between the clients and the freelancer. This is a great option as it gives freelancers security and peace of mind knowing that all payments from clients are guaranteed and made before work commences. There is also additional security in that all disputes are resolved effortlessly through the platform.
Billing for services.
Although, you as a freelancer have the liberty to set your price for the services you will provide, it however remains one of the biggest decisions you would have to make as your price may attract clients or deter them. One way you could approach billing is by assessing the workload, the time and the resources required for the job. Charge appropriately in congruence with the value of your work. It is also important to realize that not every client should become a client.
What about tax?
As a freelancer, you would not receive a pay slip. This does not mean you would not pay tax. You would still have to file a provisional tax return, as SARS stipulates that individuals who earn an income from running a business must file a provisional tax return. And although freelance work is not subject to PAYE it still counts as running a business.
Freelancers depend on a steady inflow of work, one or two jobs a month might not be sufficient to settle monthly expenses.
GigMastery.com is a platform that assists in this regard. They do all the marketing to bring customers to them so that freelancers can focus solely on providing top quality services and not spend time searching for customers.
There are many factors to consider when moving to freelancing, however it may be the best option, especially for those who are finding it difficult to make ends meet in this current economic climate.
GigMastery.com can help you make the move.