Once you go freelance, you enter a new realm of laws and regulations. The word ‘freelance’ is a layman’s term, not an official category used by the Government to classify workers. Therefore, ‘going freelance’ actually means setting yourself up as a business by establishing a trading structure and letting the tax authorities know what you’re up to.
There are several trading structures to choose from: Limited company, Sole trader, Partnership, Limited liability partnership or using an Umbrella organisation. All will have an impact on the type of business you want to operate and the relevant tax and costs that apply.Starting Out