Freelancers fight admin burden with positive outlook for 2017  

Despite spending an average of 20 days a year chasing invoices for late payment, the UK’s freelancers have recovered confidence following a volatile 2016.

That’s according to research from the Association of Independent Professionals and the Self Employed (IPSE), which conducted a survey of 1158 freelancers via an online questionnaire between 5 and 18 December 2016. The survey took place shortly after the Autumn Statement, which introduced strict new rules for freelancers seeking contracts in the public sector.

Among the findings were that nearly half (41%) of the freelance workforce finds it difficult to complete their annual self-assessment, taking an average of two days. And over four in ten (44%) freelancers find it difficult to communicate with HMRC.

In addition, a recent report from the National Audit Office found that almost two-thirds (61%) of freelancers have contacted HMRC in the last 12 months; people phoning the self-assessment tax queries line can spend an average of 47 minutes on hold. The same report estimated the cost to callers in wasted time and call costs was £4 per person for every £1 saved by HMRC.

This correlates with IPSE’s research, which found that freelancers lose one working day per year contacting HMRC. The cost of this to the UK economy is estimated to be over half a billion (£521 million).

On a more optimistic note, IPSE’s survey found that freelancer confidence was underpinned by an uptick in daily rate of pay, rising to £419 in Q4 2016, up from £403 in the previous quarter. In addition to higher earnings, freelancers are also working more, spending 80% of their time actively working on projects compared to 74% in the previous quarter.

Building a brand reputation and increasing innovation were seen as key positive drivers of business performance by freelancers.

Commenting on the survey results, Chris Bryce, IPSE CEO, said: “It’s good to see that even if freelancers remain uncertain about the economy, they have faith that they can make a success of their business. This illustrates the resilience of the freelance workforce who can thrive, even when the economic picture is tough.”