Q & A

Your Freelance Questions Answered

Have a question? Need an answer? Read more about from our experts about the freelancing issues that matter to you.

As a freelancer I am finding it difficult to get a mortgage. What are my options?

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Mortgage lenders often struggle to get their heads around the way that contractors work and often resort to the traditional accounts-based method of verifying your income. Thankfully, there is a solution. Over the past 10 years, we have been able to negotiate special mortgage underwriting with many of the big lenders based purely on a multiple of up to 4.25 times your annualised contract rate alone. This enables you to secure exactly the same interest rates and probably a larger loan size than a permanent employee.Post credit crunch, we have been working to ensure these special underwriting schemes are still available and can still be accessed by contractor-orientated mortgage brokers. You shouldn’t have to pay any mortgage broker fees for advice and a good contractor specialist will have the necessary contacts within the lending institutions to help make the whole application process hassle free.

Tony Harris, MD of Contractor financials

For further advice from PCG follow the links below:

Mortgages for freelancers explained

PCG's Guide to Freelancing

What are dividends?

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Dividends form part of the overall remuneration strategy for freelancers and as such, need to be discussed with your accountant in order to make sure that you fully understand how these operate. Dividends are an amount of a company’s realisable profit, which the directors distribute to the company’s shareholders. Realisable profit is defined is defined in the Companies Act 2006 in Part 23 S 853 (4) as: “such profits … of the company as fall to be treated as realised in accordance with principles generally accepted at the time when the accounts are prepared, with respect to the determination for accounting purposes of realised profits ...” In a publicly quoted companies in particular (but not exclusively so), dividends are a way of providing a return on capital invested in the company by the shareholders. In smaller companies they are an excellent, tax efficient way of remunerating the shareholders, as the tax rates are lower and there is no NIC payable on dividends.

Paul Mason, Abbey Tax

For further advice from PCG follow the links below:

Dividends explained

PCG's Guide to Freelancing

How will networking help me to win contracts?

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“Identify your top 30 contacts and stay in touch regularly. networking when you are in a contract is just as important as when you are seeking work as it helps you to remain visible. Use tools like linkedin to keep up-to-date with your connections. Practice talking about what you love doing with examples in one-minute format and longer, so that when opportunities arise you make the most of them.”

LINDA DENNY is a life coach

For further advice from PCG follow the links below:

How to retain your existing client base

Improve your networking skills

Building the client-consultant relationship

PCG's Guide to Freelancing

How can I stop watching the pennies?

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“Think of time and money as your key resources. Too often, control- freaks behave as if the former (time) was infinite, and the latter (money) was scarce. One way out of penny-pinching is to find a larger reality on which we can deploy our talents; rather than being a control-freak around every detail of daily life. This larger reality makes it worthwhile to build that website, get that support, do that mentoring, make that mistake, or whatever it takes to realise a greater objective.”

JOHN NILAND is a business coach and founder of Success 121

For further advice from PCG follow the links below:

Importance of financial planning for freelancers

How to maintain a healthy cashflow

Choosing the right bank account to maximise your money

PCG's Guide to Freelancing

How do I create a business proposition that means something to potential clients?

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“A lot of elevator pitches now sound very synthetic, so you might want to try a ‘magic story’ instead.

"We need value- propositions that are compelling, not bland generic statements about increasing sales and reducing costs.

"To bring out the best in your story, ask: What difference did it make? Why was that important? What would have happened otherwise?”

JOHN NILAND is a business coach and founder of Success 121

For further advice from PCG follow the links below:

How to marketing yourself to potential clients

Building the client-consultant relationship

Improve your networking skills

PCG's Guide to Freelancing

What’s the best way to tackle open-ended interview questions?

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“An open-ended question should be used as an opportunity to highlight your experience and expertise.

"The client is asking this question because they are faced with an issue or anticipate it being an issue in the future, so take the time to consider what information they are trying to get from you and make sure you give it to them.

"Also take the time to relate how you have faced similar issues/ challenges and how you overcame them – remembering to show what value you added.”

ROY DUNGWORTH is a director at recruitment specialists Modis International

For further advice from PCG follow the links below:

How to win work

PCG's Guide to Freelancing

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Your Freelance Questions Answered