Freelancers and the amount of work they received could be significantly affected by the latest number of registered company insolvencies.
According to figures from HMRC, there was 2,552 company insolvencies in May 2023 which is 40 per cent higher than May 2022 when it was 1,825. There were also 2,505 Debt Relief Orders (DROs) in May 2023, which is a 23 per cent increase on the amount recorded in May 2022 and 617 individuals registered bankruptcies, which was a 5 per cent increase than the year before and around half of pre-2020 levels.
Due to financial struggles, companies have had to cut back on hiring freelancers and many solo self-employed limited companies have had to call it a day.
Advice from The Freelance Informer tells self-employed works to increase their rates to help cover their mortgage and credit card payments and to try and secure more fixed work for a set amount of time.
According to new research from the Money and Pensions Service (MaPS), nine million people across the UK have no savings and another five million have less than £100 showing that people are struggling to save in the current cost-of-living crisis which could also have a severe impact on those who are freelancing.
