Freelancers need all the advice they can get and when it comes down to leglistlation not knowing your liabilities can be a painful and costly lesson. Our new legal blogger David Gordon is an expert in giving legal support and advice for freelance, contracting and small-businesses.
Six things you need to know (but might be afraid to ask your lawyer)
As the calendar rolls over to a new year, it is traditional to turn your mind to setting goals for the next 12 months. Deciding to break out on your own and go freelance (whether by choice or circumstance) could be a targets you have set yourself this year. If so, you may feel that there is so much to think about before you start out – it can be off-putting. Here are some key points to bear in mind.
Read on for six key areas you need to consider…
Contracts
I am often asked “we didn’t have anything in writing – so is there a contract?”. Where there is an agreement for money to be paid and goods or services to be provided then there is very likely to be an enforceable contract whether its in writing or not. The advantage of writing is that the terms can be made clear up front and the parties can agree what is or isn’t implied into that contract. E-mail counts as writing. So where, for example, you are agreeing an engagement over the phone, the best thing to do is send an email confirming your understanding of what you think you have been asked to do and the price agreed for doing it.
Structure
Are you going to be a sole trader or a limited company? The industry you are in may dictate this for you. For example in IT, service companies can be the norm, whereas for others it may be more unusual. There is nothing to stop you starting as a sole trader, seeing how it goes and then, when you’re ready, incorporate. Baby steps are often easier to cope with.
Professional Bodies
Check whether your professional body memberships are up to date and permit to you to carry on your chosen profession or trade. It may be that you have to re-register in your own right where previously your employer took care of this for you.
Insurance
Even if you are working from home it is worth considering office and public liability insurance in case something happens when you are out on the road or someone comes to visit you. You’re home insurance won’t always cover you.
Data Protection
Are you going to keep any individual’s personal information on your systems e.g. customers or suppliers names and addresses or other details? If so then you will probably have to obtain a licence from the Information Commissioner. At £35 per year it is a nominal price to be paid. The consequences of not having one when you should have can be expensive. If you are unsure whether this applies to you can check the Information Commissioner’s Office website for details (Do I need to notify?).
Website
It may only be an e-brochure but it will still have to comply with minimum rules regarding accessibility for those with disabilities. Your pages should have text only versions so they can be read by text converters. You should also establish privacy policies to limit you liability so that users know where they stand.
In short your particular sector will dictate what compliance and legal issues are key for you. From my own experience, keeping things simple to start with can make life a lot easier. Just make sure before going public with your new found status that you have at the very least checked you have the necessary clearances and licences. That said don’t let compliance and legal issues be a barrier to taking that leap of faith and making a fresh start in ‘09.
Are you covered? Do you have questions for David? Leave your thoughts below…
Hi – just wanted to say thank you for continually including my blog in your round ups, I’ve followed your blog for a good while and wish you all the success in the world! If you want to write a guest post at http://www.freelancewritingtips.com, any time, you would be really very welcome.
Best wishes
Linda
I am new in the world of freelancing and there are a lot of questions that are bugging me. With this post, I am able to know my rights and privileges as a freelancer and thanks for that. I am working on coursework jobs and it’s always helpful to know that even if I am just a freelancer, there are legal issues that need to be given 100% attention.
Irene Barnett Feb 14, 2009 at 9:12 pm
hello, I am thinking about going freelance as a nail tech,is there any more informationt that i need to know about and/or is the info above good for me.
Regards
irene Barnett
Darren Fell Feb 16, 2009 at 7:56 pm
Irene, the most important thing is getting a good contract to sign with your employers. They might have their own contract so make sure you read it very carefully. Things like not-soliciting their customers may be an obvious one but customers may think you are fantastic and want to come with you. It’s a case of checking the detail and then asking for changes if you aren’t happy.
jane Apr 15, 2009 at 6:06 pm
I’m thinking of coming freelancing in home caring jobs going private. what insurance will I need please.
I will be working on my own and driving to the client just doing personal care and getting there lunch ready. I have got all the certificates as I have just finished with agency and the client wants me to look after her privately. Thats why I’m asking what insurance I will need.
Regards
Jane
Elizabeth May 18, 2009 at 3:57 am
I am considering setting up a small sports business and employing coaches on a freelance basis. Does anyone know what legal aspects are involved in employing freelancers and what types of company can employ someone on a freelance basis. If so please can they contact me on readingredkittens@hotmail.co.uk Thank you. Elizabeth
David Gordon May 27, 2009 at 2:34 pm
In general terms yes there are various issues to consider when taking on someone on freelance. Particularly making sure who is responsible for tax and national insurance contributions – and are they truely self employed or have you in fact taken on a defacto employee. In relation to what kind of companies can take on freelancers – the answer is relatively simple in that any company or trader can regardless of their status.
redundancy insurance Apr 2, 2010 at 1:52 am
Loss for the British in question, what about jobs to cover the financial requirements where there are several options in the form of unemployment insurance. It is a redundancy insurance coverage that helps citizens protect themselves.
legalvanitynumbers Apr 13, 2010 at 4:51 pm
Thanks for the wonderful post you have. lawyer advertising has the same idea as well, with regards to legal actions.
legalvanitynumbers Apr 19, 2010 at 3:28 pm
i read this post liker 5 times already and still im still into it, its a big help to law firm marketing plan.. thanks again for the post
Making money with screencasting: Great guide for both screencast makers and owners. I’ve read your screencast handbook and really enjoy it Ian. Hope you can introduce... >>
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Jan 22, 2009
at 2:00 pm
Hi..How are you my friend? Its me your classmate chris… Remember? I visit your blog its cool and nice..
Try also my blog.
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This comment was originally posted on http://writetotravel.blogspot.com/)“>My year of getting published
Jan 23, 2009
at 2:54 am
David thanks for the heads up on the disability rules. It’s something I hadn’t thought about with respect to publishing.
Jan 23, 2009
at 6:00 pm
Thanks for including me in your post!
This comment was originally posted on http://writetotravel.blogspot.com/)“>My year of getting published
Jan 24, 2009
at 10:00 am
Hi – just wanted to say thank you for continually including my blog in your round ups, I’ve followed your blog for a good while and wish you all the success in the world! If you want to write a guest post at http://www.freelancewritingtips.com, any time, you would be really very welcome.
Best wishes
Linda
This comment was originally posted on http://writetotravel.blogspot.com/)“>My year of getting published
Jan 26, 2009
at 4:00 am
thanks linda. might just take you up on that one of these days.
Cheers,
Liz
This comment was originally posted on http://writetotravel.blogspot.com/)“>My year of getting published
Feb 5, 2009
at 1:36 am
I am new in the world of freelancing and there are a lot of questions that are bugging me. With this post, I am able to know my rights and privileges as a freelancer and thanks for that. I am working on coursework jobs and it’s always helpful to know that even if I am just a freelancer, there are legal issues that need to be given 100% attention.
Feb 14, 2009
at 9:12 pm
hello, I am thinking about going freelance as a nail tech,is there any more informationt that i need to know about and/or is the info above good for me.
Regards
irene Barnett
Feb 16, 2009
at 7:56 pm
Irene, the most important thing is getting a good contract to sign with your employers. They might have their own contract so make sure you read it very carefully. Things like not-soliciting their customers may be an obvious one but customers may think you are fantastic and want to come with you. It’s a case of checking the detail and then asking for changes if you aren’t happy.
Apr 15, 2009
at 6:06 pm
I’m thinking of coming freelancing in home caring jobs going private. what insurance will I need please. I will be working on my own and driving to the client just doing personal care and getting there lunch ready. I have got all the certificates as I have just finished with agency and the client wants me to look after her privately. Thats why I’m asking what insurance I will need. Regards Jane
May 18, 2009
at 3:57 am
I am considering setting up a small sports business and employing coaches on a freelance basis. Does anyone know what legal aspects are involved in employing freelancers and what types of company can employ someone on a freelance basis. If so please can they contact me on readingredkittens@hotmail.co.uk Thank you. Elizabeth
May 27, 2009
at 2:34 pm
In general terms yes there are various issues to consider when taking on someone on freelance. Particularly making sure who is responsible for tax and national insurance contributions – and are they truely self employed or have you in fact taken on a defacto employee. In relation to what kind of companies can take on freelancers – the answer is relatively simple in that any company or trader can regardless of their status.
Apr 2, 2010
at 1:52 am
Loss for the British in question, what about jobs to cover the financial requirements where there are several options in the form of unemployment insurance. It is a redundancy insurance coverage that helps citizens protect themselves.
Apr 13, 2010
at 4:51 pm
Thanks for the wonderful post you have. lawyer advertising has the same idea as well, with regards to legal actions.
Apr 19, 2010
at 3:28 pm
i read this post liker 5 times already and still im still into it, its a big help to law firm marketing plan.. thanks again for the post