At the end of March 2020, the UK government announced support to help freelancers and self-employed people suffering loss of earnings as a result of coronavirus COVID-19. Called the Self-Employed Income Support Scheme (SEISS), the package means that self-employed and freelance workers will be able to apply for a grant of up to 80% of their average monthly earnings.

It was a financial aid victory for freelancers and the self-employed, seeing them offered the same level of support as employed workers. But how are the country’s freelancers really coping?

The impact of COVID-19 on freelancers

The Creative Industries Federation surveyed 2,000 creative businesses and freelancers. They found that an alarming proportion are already experiencing a substantial impact on their work and income as a result of coronavirus.

A vast 61% of freelance workers said that due to the COVID-19 outbreak, their work had declined by 100%. That means more than half now have no projects, and therefore little to no income.

Viewing this scenario from the other side of the fence, more than half (51%) of organisations surveyed said they had had to terminate 100% of active freelance contracts.

Small businesses can no longer afford their freelancers

Of course, times are hard for businesses and organisations, as well as those who are self-employed or work in a freelance capacity. For many, pumping money into freelance contracts just isn’t an option when most are running emergency cost-cutting exercises to fend against the challenges that lay ahead.
accounting services for sole traders
The Creative Industries Federation research revealed that so far during 2020, 40% of creative businesses predict their annual turnover will decrease by more than 75% as a result of the coronavirus pandemic.

More than a quarter are already reporting “considerable” cash flow issues, and a concerning 32% say that their existing reserves will only last them somewhere between 4-12 weeks.

Find help for freelancers hit by COVID-19 coronavirus

The gig economy is going to be hit hard by the coronavirus crisis but there are some options which might help.

Find out more about our online accounting services, and how they can help self-employed freelance sole traders.

About The Author

Elizabeth Hughes

An SEO Copywriter and Content Creator. After more than ten years of enjoying myself by turning difficult subjects into elegant, simple language, I still can't believe I get paid for this.

0 Comments
Inline Feedbacks
View all comments

Read more posts...

Staff Spotlight: Georgina Sudderick

In the spotlight for our online accountancy this month is Georgina Sudderick! What is your job title? Accounts Senior What does your…

Read More

Understanding Accountancy Terms: Cash Flow

In accounting, cash doesn’t just mean physical notes and coins. It also refers to money available to the business, such as in…

Read More

Declaring Dividends on Different Classes of Shares

Dividends are one of the greatest perks of being a director or shareholder in a business. It’s a welcome financial benefit in…

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