A freelancer is someone who works for themselves rather than being employed by one company full-time. Businesses usually hire freelancers for specific projects, short-term support, or specialist skills.
Think writers, designers, developers, marketers - basically the extra pair of hands you need without always adding another permanent employee to payroll.
Freelancers can support businesses across almost any industry. They are not tied to one sector. UK SMEs commonly hire freelancers for:
And it is far from niche. According to the IPSE, there are around 2 million freelancers in the UK, with businesses increasingly relying on flexible specialist talent for project-based work.
The main difference comes down to employment status. Employees work directly for one company and usually receive a salary, holiday pay, and workplace benefits.
Freelancers are self-employed and typically work with multiple clients, often on short-term or project-based agreements.
For many UK SMEs, hiring a freelancer is a practical way to get expert support without the cost of a full-time employee. Key benefits include:
Hiring a freelancer can save time and money, but it is worth getting the basics right first. Keep an eye on:
In the UK, businesses should also understand IR35 and employment status rules when working with long-term contractors or freelancers.
Hiring a freelancer is usually much smoother when you have a clear plan from the start.
You can find freelancers through referrals, LinkedIn, freelance platforms, or specialist talent partners.
A detailed brief and clear expectations upfront can save plenty of back-and-forth later and help projects run without the classic “quick revision” turning into 17 extra tasks.
The terms are often used interchangeably, but there can be small differences. Freelancers usually work on shorter, flexible projects for multiple clients. Contractors are more commonly hired for fixed-term agreements, often on larger or highly specialised projects.
In practice, both are typically self-employed.
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