A new year, a new focus, a new list of jobs and projects for those who are self employed. The juggle is real when you are self employed and so often the work life balance can take a bit of a hammering. There are long hours ahead, maybe a bit of stress but hopefully some highs too. Let's look at what we can expect from the world of self employment in 2022.
Did you know that 4 out of 5 people said they received enough support from the Government during the pandemic? Financial support is winding down, if it hasn't already. This means that monetary support will need to come from other avenues should a business require it. For example, the Recovery Loan Scheme will close on 30th June this year. Will we see business owners looking at their own plan-B in place? Their own contingencies so we rely less on what the Government deems appropriate. This could perhaps be critical for the self employed in 2022.
Higher Rates For Freelancers
There has been an increase in the average day rate for freelancers. This rise could continue over the coming twelve months as well. There is a reliance and interest in freelancers, as there are no employee pension contributions or sick days to take into consideration. The client gets the agreed work for the agreed price and everyone moves on. This enhanced requirement for freelancers means that they can set their own prices that little bit more. If you work as a freelancer, you are likely to be in demand and you can earn the money you want. If you are a business who rely on freelancers, you might see the amount you are spending on them increase.
A Focus On Wellbeing
We've been shown what is important over the last couple of years. Starting your self employment in 2022 with a focus on wellbeing is important for many small businesses. This could be four day weeks, flexible working hours or a push on mental and physical wellbeing. There have been many moments where people have found themselves in the valley, struggling to find a way out. With that in mind, taking time to reconnect with nature, spend time outside and exercise is a great idea. We can work many hours but without giving ourselves time to recharge, we simply spin the wheels without going anywhere.
The money paid out to people over the last couple of years was always going to need to be clawed back. The amount that people can earn tax free is being frozen until at last 2025/26. It stays at £12,570. However both National Insurance and dividend tax rates are increasing. There were always going to be changes in tax as the Government try to balance those books and get everything back on track as we exit the pandemic. If you need help and assistance with your bookkeeping please do get in touch.
Finally, these are just four things we could see in the world of self employed in 2022. Where will you find your inspiration and motivation this year? How do you see the next twelve months going for you and your business? In what position do you realistically see your venture this time next year?