Starting a new business? Get 40% off our accountancy services for 3 months! 😀

x

The good news is that yes, you can take on work from other sources, even whilst on furlough. This could be another job entirely, freelance work or a zero-hours contract.

Many businesses have been put in a difficult position during the COVID-19 crisis. With business slowing down, restrictions in place and lost revenue, many staff have been let go or furloughed.

With many workers now on a percentage of their original salary, some are looking for ways to make up for the lost income.

Furlough rules on employment

The driving force behind furloughing workers is that many businesses have no work for their employees. Rather than making them redundant, an employer can give staff temporary leave.

If you are furloughed, you won’t be able to take on any work or provide services for your current employer. You will be able to take part in training though, if necessary.

Rules on self-employment and freelancing

Whilst the government grant says it’s ok for you to freelance whilst furloughed, make sure that your current contract allows you to do this.

Some employers include no-compete clauses in employment contracts, which could prevent you from doing similar work for others.

 

Freelancer accountancy services

Going back to work

It’s worth thinking about what happens if your employer suddenly ends furlough. Even if they give you plenty of warning (and they should) they will expect you back at some point.

It can make things awkward if you already have another job, or have promised work to a lot of clients.

The good thing about freelancing is that it’s a more flexible way to supplement your income. However, it can still be difficult to manage if you have to go back to full-time work.

The other option is to keep freelancing in your spare time when furlough ends. This gives you the stability of additional income, which is definitely a plus right now.

It also helps you to develop new skills and explore other interests. Just make sure you’re not freelancing on company time!

Freelance taxes

Thanks to the trading allowance you’re allowed to earn less than £1,000 from self-employed income during a tax year, without needing to register for Self Assessment or pay tax on it. That’s pretty handy if you’re just doing the occasional bit of freelance work.

If you do earn over £1,000, then you’ll need to register with HMRC, as well as submit a Self Assessment tax return. Read our article about deadlines for registering for Self Assessment and submitting your return. We also have an article about this year’s National Insurance and income tax thresholds and rates.

Getting set up as self-employed is pretty easy and can be done online in a matter of minutes. But that’s not all you have to do. You’ll need to keep detailed records of all your income and outgoings so that you can report them to HMRC when you do Self Assessment.

If you’re unsure about anything, talk to one of our advisors about our online accounting services for freelancers by calling 020 3355 4047, or use the Live Chat button on screen. 

About The Author

Kara Copple

An experienced business and finance writer, sometimes moonlighting as a fiction writer and blogger.

0 Comments
Inline Feedbacks
View all comments

Read more posts...

Exporting to the EU for UK Businesses After the Brexit Transition Period

The Brexit transition period is over, and the rules for moving goods between the UK and the EU are now different. Some…

Read More

New Rules for VAT on Low Value Goods Imports

Low-Value Consignment Relief (LVCR) was a type of tax relief for import VAT. LVCR meant that UK businesses didn’t pay import VAT…

Read More

Using Postponed Accounting for UK Import VAT

The end of the Brexit transition period means there are changes which VAT registered businesses must be aware of. The changes include…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.