A self-employed worker is a key term for anyone in the gig economy. It defines your legal and professional status when you work for yourself.
What is Self-employed worker?
A self-employed worker is someone who runs their own business as a sole proprietor or independent contractor. You are not an employee of a company. Instead, you offer your skills and services directly to clients on a project or contractual basis.
Why is this important?
Understanding this status is crucial for your taxes, legal liability, and client contracts. It defines how you invoice, manage expenses, and secure your own benefits. Getting it right protects you and ensures you operate legally.
How does it work?
You find clients via platforms, networking, or referrals. You negotiate your own rates and project terms. You handle all business operations, from invoicing and project delivery to paying your own taxes and securing insurance.
Pros and cons
Key advantages include freedom, flexibility, and unlimited earning potential. The downsides are income instability, full responsibility for admin and taxes, and no employer-provided benefits like paid leave or health insurance.
Conclusion
Being a self-employed worker offers great independence but requires business discipline. It's a formal business structure, not just a way of working. Understanding this foundation is the first step to a sustainable freelance career.
Ready to freelance?
Download the HFS Freelancers app and discover flexible shifts in your area. Or explore more terms in our knowledge base.
