Tag Archives: freelancers

News

One in three UK freelancers don’t feel confident about their long-term future due to IR35 and economic uncertainties

  • Only 53% of UK freelancers aren’t considering a full-time job, with 35% thinking about it;
  • 51% of UK freelancers have an impression of business opportunities’ slowdown;
  • Yet only half of full-time UK freelancers (48%) could raise their daily rates to align with the inflation.

London, UK, 1 May 2024: Freelancing in the UK took a hit due to IR35 changes and economic instability, as 35% of UK freelancers don’t feel confident about their long-term future, according to Europe’s largest talent marketplace, Malt.

In its latest ‘Freelancing in Europe 2024’ report,  the number of UK freelancers who are confident is lower than the overall European average (69%), especially compared to countries like Germany (86%) and France (75%).

As a result, only half (53%) of freelancers are not looking for a full-time job, with 12% actively searching for it and 35% thinking about it. This is a big contrast to other countries such as Germany, Belgium, and the Netherlands, where freelancers are much more confident in their career choices, with 72%, 71%, and 70%, respectively, not looking for full-time employment.

The UK is also one of the most impacted countries when it comes to business opportunities – more than half (51%) of UK freelancers have an impression of a slowdown due to the economic environment. Compared to other European countries, freelancers feel that they have more or the same business opportunities, with only 32% in France, 32% in Germany and 39% in Spain feeling a slowdown.

The situation is exacerbated with the rollout of IR35 – some companies, especially in financial services, have banned freelancers entirely, while others try to avoid UK freelancers and prefer to work with European ones to avoid adhering to IR35 rules.

Quentin Debavelaere, General Manager for UK, Benelux and Middle East at Malt, said: “Economic uncertainties and especially legislations like IR35 are the main pressure points for freelancers in the UK. Many organisations have slowed down their investments by reducing marketing spend and focusing on core business activities. This resulted in a big slump in the demand for advertising and consulting services, in stark contrast with 2021 and 2022. For freelancers, this means lower opportunities for the creative class and management consultants.

“Yet, it’s not all doom and gloom for the UK freelancers. Some organisations see an independent workforce as a formidable lever of flexibility. Several companies will definitely aim for having 15-20% of a flexible workforce in the future to cope with increased volatility.”

To combat high inflation rates, nearly half of full-time UK freelancers (48%) raised their daily rates to align with inflation. The proportion of part-time UK freelancers who raised their fees is even lower – 43% – probably due to fear of jeopardising a valuable supplemental income source. This is a stark contrast to Spanish freelancers – 75% increased their rates dramatically due to inflation.

Despite the current economic uncertainties, UK part-time freelancers are faring much better – 53% want to do more independent work, and 35% want to continue to do independent consulting part-time. This might be partially due to the fact that many UK part-time freelancers are waiting for the economic turbulence to settle before leaping into full-time freelancing opportunities.

Zooming in on UK freelancers in specific industries, confidence in freelancing as a long-term future is high across industries such as Business Consulting (77%), Tech and data (77%), and Art and design (71%).

“Freelancers offer a competitive advantage in the marketplace primarily due to their ability to deliver services with lower overhead costs and greater flexibility compared to traditional outsourcing companies. This efficiency enables them to provide high-quality services at exceptional value, making them an attractive option for clients, especially during periods when many companies are reducing their budgets.

“While the economic turbulence and IR35 might be mudding the waters, freelancing will continue to thrive across Europe. It’s not considered a side hustle anymore but rather a conscious lifestyle choice, especially for younger generations who value flexibility above all else. Moreover, large organisations like L’Oreal, Schneider Electric, BT and WPP are finally seeing independent talent as valuable members of their ‘superteams’, bringing enormous value to their operations.

“We at Malt are very proud to not only be the conduit of independent talent for companies but also the cornerstone of the fantastic freelancing community, and we look forward to growing our support in 2024”, concluded Debavelaere.

To find out more about the current freelancing environment across Europe and see how the UK fares against its European counterparts, download the report here.

News

Malt set to redefine the future of independent talent with Freelance Advisory Board

The committee will help address the challenges and opportunities faced by freelancers and consultants and how companies can better connect with independent talent

London, January 2024 – Malt, Europe’s leading freelancer marketplace facilitating connections between businesses and freelancers, announces the launch of its Freelance Advisory Board, a consultation committee bringing together 17 freelancers and consultants from seven countries to help Malt shape its strategy across Europe.

A new governing body has been selected from a community of 600,000 freelancers registered on Malt’s platform and gives a voice and active role to its international community of freelancers. Members of this committee have completed over 500 assignments in eight categories of business expertise, such as tech, marketing, design, and strategy consulting.

Charlotte Gregson, Country Head UK at Malt, said: “Our goal at Malt has always been to create an environment where the voice of every freelancer is heard and valued. The formation of the Freelance Advisory Board is a testament to that commitment. Harnessing the unique experiences and insights of this diverse group will enable us to better meet the evolving needs of our community and shape the future of work. We’re not just launching an advisory board but unlocking a shared journey of collaboration and innovation”.

Acting as a stakeholder committee, the advisory board will also have an advocacy role, representing the freelancers’ voices during Malt’s discussions with public decision-makers to keep changing the rules about freelancing and help influence policies defining the future of work.

Dr Gary Crotaz, Executive Coach and host of The Unlock Moment podcast, added: “The best businesses stay closely connected to the voice of their customer, and Malt is no different. The Board will help highlight challenges that freelancers face and improve the experience for both clients and freelancers to create seamless and highly successful engagements. We care about fixing the pain points, like scoping the project, negotiating the price and getting paid. But we also care about helping freelancers grow, so accessing the resources that employees often benefit from, like mentoring, coaching and personal development opportunities. It is my honour and privilege to represent the UK on the Freelancer Advisory Board.”

Members of the Freelance Advisory Board will meet annually with Malt’s management to discuss strategic subjects such as product vision, new features and services, as well as product pricing and daily rates, creating a unique opportunity for Malt to gather their ideas and address potential difficulties.



News

Freelancers move from pandemic uncertainty to exploiting demand opportunity in UK

  • Initial uncertainty over finding work during the pandemic led to half of freelancers being concerned about their financial security
  • Nearly half (47%) of freelancers across the UK now seeing increased demand as a direct result of the pandemic and Great Resignation
  • Concerns remain for most vulnerable freelancers hit with higher living costs and tax rates after having to take on COVID relief grants

London, 15 February – New research from Worksome, the tech platform connecting businesses with freelancers, and IPSE, the Association of Independent Professionals and the Self-Employed, has today found that almost half of freelancers (47%) have become concerned with their financial security following the pandemic.

The Great Resignation, caused by months of remote working during the pandemic led many workers to reassess their careers, job satisfaction and resign in a large number of cases, which has had an interesting double effect on the freelance community.

Nearly half (47%) of freelancers across the UK saw an increased demand as a direct result. In terms of job roles, nearly one in six (15.8%) freelancers said that the pandemic directly led to them becoming a freelancer. Of these, almost six in 10 (57%) of former full time workers are earning more than before and nearly three quarters (74%) are happier.

The report also found that while the majority (55%) of freelancers were saving for a future period of no work during the pandemic, nearly one in ten (9%) were not saving at all. These freelancers could be particularly hard hit by higher tax rates for freelancers that have also taken on COVID relief grants on top of rising inflation and living costs.

Despite the rollout of the government’s Self-Employment Income Support Scheme (SEISS), almost a quarter (24%) of freelancers had to use most or all of their savings for everyday expenses, with nearly 1 in 5 (18%) using a credit card or overdraft to support themselves during COVID.

While 57% were still able to put aside savings for later life and retirement, 13% said debt taken on during the pandemic prevented them from saving for later life as much as they would like and 7% said debt meant they hadn’t been able to save at all.

Morten Petersen, CEO and Co-Founder, Worksome said: “While the freelance market may be buoyant again, it’s clear that the darkest days of the pandemic and lockdown will have an impact on the freelance community for years to come. It’s crucial for government, business and civil society to come together to support this group of crucial workers who were not necessarily supported as well financially during the pandemic as others. Meanwhile, unfair tax rules on COVID relief grants continue to penalise this group of often highly skilled workers who contribute £162bn to the UK economy.”

Andy Chamberlain, Director of Policy at IPSE said: “Today’s research paints a mixed picture of the self-employment landscape. While we at IPSE welcome the increase in demand and the shift from some full-time employees to freelance work, it is clear that COVID-19 has been devastating for contractors. After 11 years of continuous growth, the number of self-employed workers has fallen from 5 million in 2019 to 4.1 million in 2021. Moreover, for thousands of those that have remained as freelancers, they have lost work, fallen into debt and been severely impacted by the reforms to IR35 in April 2021.

“As we (hopefully) start to recover from the pandemic, the government needs to clear up the confusion around IR35 and help self-employed workers that have fallen into debt during lockdown.”