New research suggests that 47 per cent of freelancers and contractors have revealed that ‘lack of security’ is the most difficult aspect of self-employment, research by leading contractor tax adviser, Qdos Contractor of The Qdos Group suggests.

Research into 714 UK freelancers and contractors, highlights –

• 47 per cent believe lack of security is the most challenging aspect of freelancing
• 32 per cent find the complicated tax system the most difficult part
• Ten per cent find separating work and personal life as the biggest difficulty
• Five per cent are most challenged by isolation
• Six per cent believe ‘other’ aspects such as ‘planning holidays’, ‘lack of professional respect’ and ‘irrational Government decisions’ create the most difficulty

Seb Maley, Qdos Contractor CEO comments, ‘Freelancing and contracting offers the opportunity for greater freedom, control and independence, but unfortunately does not bring those brave enough to strike out alone a huge amount of security. That said, ongoing skills shortages in the UK, and the changing nature of work means that demand for independent workers is consistently strong.

‘In the past, independent workers have been able to enjoy certain, but limited tax advantages when working through their own companies. These would somewhat balance out the risk of self-employment, and the lack of security and employee-like benefits such as holiday, illness, maternity and paternity pay.

‘In many cases, established contractors can be satisfied working without employee-like benefits, and the lack of security is simply part and parcel of self-employment. However, recent changes to the tax system, which includes IR35 reform and the slashing of tax free dividend allowance have both reduced the benefits of working independently, without the offer of anything in return.

‘It’s important that the government focuses on building a fairer environment for those working independently, and one where the benefits of self-employment balance the risk and lack of security.’

Further reading

• A small business guide to going freelance – A look at the main considerations when going freelance, from procedural advice to managing your work-life balance