Many companies found themselves in a difficult situation during the COVID-19 crisis. With the business slowdown, restrictions in place, and lost revenue, many employees have been abandoned or drenched with worry. With many workers now on only 80 percent of their original salary, some are looking for ways to make up for lost income.
The good news is that you can work in other ways. This could be a completely different job a freelance job or zero contracts. So in this article let’s discuss the question, ‘Can I freelance on furlough?’
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This is a stressful time and you may just want to focus on your daily life. You may have to spend your time working caring for children or other family members.
You could use some of your time to improve your skills when you return to work, or even to explore ideas for a career change. Remember, during a crisis, you are practicing the types of soft skills that most employers look for, such as:
resilience: the ability to bounce back when things go wrong
communication, such as using the Internet to keep in touch
problem solving: from finding new ways to shop or cook, to getting medicine for an elderly relative
decision-making, for example, planning how to manage your finances, earn extra money, or waste your time
Time management, such as maintaining a routine, homeschooling the kids, or organizing regular exercise.
Licensing rules for employment
The driving force behind hedge workers is that many companies do not fully support their employees. But rather than making everyone redundant, an employer can arrange temporary leave with staff. If you are on the payroll and you are furloughed, you will not be able to do any work or provide services to your current employer. However, you can participate in the training if necessary.
While restrictions are now starting to tighten in some areas, and businesses are getting back to normal, this is not the case for everyone.
Rules for self-employment and freelance
While the government grant says it’s okay to free yourself while you’re furious, make sure your current contract allows you to. Some employers include non-compete clauses in employment contracts, which may prevent you from doing similar work for others.
As we always say, speak to a personal accountant if you are unsure so they can double-check the rules for your personal situation.
Back to work
It’s worth thinking about what happens if your employer ends abruptly. Even if they give you a lot of warnings (and they should), they will expect you to return at some point. It can complicate things if you already have another job or if you have promised to work for many clients.
The great thing about freelance work is that it is a more flexible way to supplement your income. However, managing if you have to return to full-time work can be difficult to manage. The other option is to keep a free shoot at your spare time when the fur runs out. This gives you additional stability in income, which is definitely a good thing now. Helps you develop new skills and explore other interests. Make sure you are not working on your own during company time!
Thanks to the business allowance, you can earn less than £ 1,000 of a self-employed person’s income during a tax year, without having to register or pay self-assessment taxes. That’s very useful if you’re just doing a little freelance work.
If you earn more than £1,000, you will need to register with HMRC, as well as file a self-assessment tax return. Speak to an accountant in your local area to get more help with this.
Setting it up as standalone is pretty easy and can be done online in a matter of minutes. But that’s not all you have to do. You will need to keep detailed records of all your income and expenses so that you can report them to HMRC when you conduct a self-assessment.
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