Freelancing and portfolio careers

Freelancing

Freelancing is a form of self-employment where you offer your skills, services or expertise to clients. You may work for several clients at once, take on short-term projects, or build ongoing relationships with organisations that need your specialist skills. Prospects describes freelancers as self-employed people who lend their skills to a number of clients on a flexible basis, rather than being employed by one organisation or committed to one customer. 

Examples of freelance work include:

• writing, editing, translation or proofreading
• design, photography, film, music or creative production
• tutoring, coaching or training
• software development, data analysis or digital work
• marketing, communications or social media
• consultancy, research or specialist advisory work
• events, production or project management

Related resource:

• Prospects: Freelancing

Portfolio careers

A portfolio career usually means combining several strands of work. For example, someone might combine part-time employment, freelance projects, consultancy, creative work, teaching, research, board roles or running a small business.

This way of working can be particularly common in the creative industries, academia, research, consultancy, entrepreneurship and social impact careers. ScreenSkills describes portfolio careers as a way for freelancers in the creative industries to use their skills across different sectors, roles and types of work. 

A portfolio career is not simply doing lots of unrelated things. At its best, it has a clear story: what you do, who you do it for, what skills connect your work, and how each strand supports your wider career direction.

Related resources:

• ScreenSkills: Portfolio careers
• ARU: What is a portfolio career?
• The Portfolio Collective: What is a portfolio career?

Why consider freelancing or portfolio working?

Freelancing or portfolio working may appeal if you want to:

• choose the projects, clients or causes you work with
• build experience across different sectors
• use specialist expertise developed through your degree, research or professional experience
• work more flexibly around other commitments
• test an idea before committing to a business or career change
• combine creative, commercial, academic or social impact work
• develop a career that does not follow a single linear path
• build a portfolio of evidence, clients, publications, case studies or project examples

However, freelancing also brings responsibility. You may need to find your own work, negotiate fees, manage clients, keep financial records, understand your tax position, arrange insurance and plan for quieter periods.

Related resources:

• Advisory Board Centre: How to build a portfolio career
• BBC Bitesize: Portfolio careers

Is this way of working right for me?

Before you start, ask yourself:

1. What service, skill or expertise can I offer?
2. Who would pay for this, and why?
3. Do I understand the market I want to work in?
4. Do I have examples of my work or a way to demonstrate my skills?
5. How might I find my first client, project or opportunity?
6. What rate will I charge, and how have I calculated it?
7. What are my financial needs, including tax, insurance, pension planning and quieter periods?
8. Am I comfortable managing my own time, workload and boundaries?
9. Do I understand my legal, tax, contractual and visa position?
10. Who can I ask for advice, feedback or introductions?

You do not need to have every answer before exploring freelancing. However, you should avoid accepting paid work until you understand what you are agreeing to and have confirmed the scope, fee, deadline and payment terms in writing.

There is no single legal definition of “freelancing” in the UK. How you work will affect your tax, legal responsibilities, employment rights and administration. The information below is a starting point, not legal or financial advice. Always check current official guidance before making decisions.

One-off freelance or paid project work

You may be offered a small piece of work alongside employment, study or research. Even if it feels informal, you should check whether you need to register as self-employed, declare the income, agree a contract or invoice the client.

GOV.UK states that you must register for Self Assessment as a sole trader if you earn more than £1,000 in a tax year from sole trader activity. After registering, you will need to submit Self Assessment tax returns. 

Sole trader

Being a sole trader is often the simplest structure for people starting freelance work. You work for yourself, are classed as self-employed, make the business decisions and keep the profits after tax.

This route may suit people doing lower-risk, small-scale or early-stage freelance work. However, you are personally responsible for the business, so you should think carefully about contracts, insurance, tax, record-keeping and any risks connected to the work.

Limited company

Some freelancers and consultants choose to work through a limited company. A limited company is legally separate from the people who own and run it. This can offer more separation between personal and business finances, but it also involves more administration.

GOV.UK states that company directors are responsible for keeping company and accounting records, filing accounts and tax returns, and ensuring Companies House information is correct. 

This structure can be more appropriate in some sectors or for higher-value consultancy work, but it is sensible to seek professional advice before setting up a company.

Umbrella company

An umbrella company may employ you while you work on assignments for clients, often through an agency or labour supply chain. This can reduce some administration, but you should check how you are being paid, what deductions are being made, and whether the arrangement is legitimate.

GOV.UK warns that some umbrella companies may involve workers in tax avoidance schemes. 

Agency work and temping

Agency work is not usually the same as freelancing. If you are employed by an agency for a temporary assignment, your tax and National Insurance will normally be handled through payroll.

You still have important rights as an agency worker. GOV.UK states that agency workers can qualify for equal treatment after 12 weeks in the same role, subject to the rules around qualifying periods and breaks between assignments. 

Related resources:

• GOV.UK: Set up as a sole trader
• GOV.UK: Register as a sole trader
• GOV.UK: Set up a limited company
• GOV.UK: Running a limited company
• GOV.UK: Working through an umbrella company
• GOV.UK: Agency worker rights
• ACAS: Agency workers

If you are in the UK on a Student visa, you must check your work conditions before accepting any freelance, contractor, consultancy or self-employed work.

UKCISA advises that if an employer suggests you work as a contractor or on a freelance basis, you must not agree to this as you might breach your work conditions. UKCISA also notes that there may be limited exceptions for students who have submitted an immigration application under the Innovator Founder route. 

Before accepting any work, contact the University’s student immigration advice team or check official UKCISA guidance. Do not rely only on a client, agency or employer telling you that an arrangement is acceptable.

Related resources

• UKCISA: Working as an international student
• UKCISA: Navigating work and study with a Student visa
• University of Oxford: Student immigration

IR35

If you provide services through your own intermediary, such as a limited company, IR35 or off-payroll working rules may be relevant. These rules are designed to make sure that someone who would be an employee if engaged directly pays broadly the same Income Tax and National Insurance as an employee.

HMRC states that off-payroll working rules apply where a worker provides services through their own intermediary, usually a limited company, and would have been an employee if they were providing services directly to the client. 

This is a complex area. If your work involves contracting through a company, agency or intermediary, use current HMRC guidance and consider professional advice.

Related resources

• GOV.UK: Understanding off-payroll working, IR35
• GOV.UK: Off-payroll working, IR35, detailed information
• HMRC: Check employment status for tax

Tax and record-keeping

Freelancers and self-employed people are responsible for keeping accurate records, understanding what income must be declared, saving for tax and paying the correct amount on time.

Depending on your circumstances, you may need to:

• register for Self Assessment
• keep records of income and expenses
• invoice clients
• submit tax returns
• pay Income Tax and National Insurance
• register for VAT if required
• use Making Tax Digital for Income Tax if you meet the threshold

Making Tax Digital for Income Tax is being introduced in stages. GOV.UK states that it becomes mandatory in phases from 6 April 2026, and that sole traders and landlords should check whether and when they need to use the service. 

Tax rules change, so always check current GOV.UK guidance or seek advice from an accountant.

Related resources

• GOV.UK: Self Assessment tax returns
• GOV.UK: Set up as a sole trader
• GOV.UK: Making Tax Digital for Income Tax
• GOV.UK: Check if and when you need to use Making Tax Digital for Income Tax
• MoneyHelper: Tax and National Insurance when self-employed

Official guidance

• GOV.UK: Set up as a sole trader
• GOV.UK: Register as a sole trader
• GOV.UK: Set up a limited company
• GOV.UK: Running a limited company
• GOV.UK: Working through an umbrella company
• GOV.UK: Agency worker rights
• GOV.UK: Understanding off-payroll working, IR35
• GOV.UK: Making Tax Digital for Income Tax
• UKCISA: Working as an international student

Careers and sector resources

• Prospects: Freelancing
• Prospects Luminate: Self-employed graduates in the UK
• IPSE: Freelancing and self-employment resources
• IPSE: How many freelancers are in the UK?
• ScreenSkills: Freelance Toolkit
• ScreenSkills: Portfolio careers
• Freelance Corner podcast
• Contractor UK
• The Portfolio Collective: What is a portfolio career?
• Advisory Board Centre: How to build a portfolio career