For second reason

Sorting out your accounts and self-assessment yourself is clearly cheaper – but time-consuming as you’ll need to appreciate which expenses can be offset against tax. Is it the best use of your time? Whatever manufacturing you’re in, and whether you’re a sole trader or limited company, don’t let people get away without paying you. Set reasonable terms – say 28 days – and chase payment by phone or email when it becomes overdue. Mark Burgess, chief operations officer at Debt Guard Solicitors, a business debt recovery specialist, suggests sending a solicitor’s letter to encourage payment if all else fails. The fear every freelancer lives with is that the work will dry up overnight. One way of defensive yourself against this risk is to set up an crisis income reserve.“Financial planners like to refer to this as your rainy-day fund and the general guideline is to hold the equivalent of three to six months of your earnings,” says Make Currie, associate investment director Fidelity Personal invests. “Freelancers may want to err on the side of caution and opt for six months of earnings in such a ‘fall back finance’. Sheltering your rainy day fund within an individual savings account may make sense.”On top of that freelancers also need to make their own pension arrangements. They can sign up with Nest, the new national pension scheme set up by government, or set up a personal pension via a financial adviser.