How to Work as a Freelancer in IT

The modern labor market in information technology provides unique opportunities for self-realization and professional growth. Freelancing in the IT field is becoming an increasingly popular choice among professionals who want to work independently and efficiently. Due to the developed IT sector in Belarus, freelancing is an attractive alternative to traditional wage labor. Let’s look at the pros and cons of IT freelancing for specialists and IT companies, understand the intricacies of the design of activities and share tips on achieving success in this area.

Who can be called a freelancer in the IT field

The word “freelancer” in Russian comes from the English term “freelancer” and means a free specialist. A freelancer in information technology is a professional who works independently of an official employment contract. He performs a variety of projects, mostly remotely, using the Internet. Such specialists can be engaged in web development, design, programming, testing, SEO optimization and other tasks.

Why is it profitable to be a freelancer in the IT field?

Being a freelancer in the IT field has several advantages:

1. Flexible working hours
Freelancers can set their work schedule and choose a convenient time to complete tasks.
2. Work from anywhere in the world
Freelancers can work from home, in a cafe, in another city, or even in a country; they do not need to be in the office all the time.
3. Variety of projects
Freelancers can choose exciting projects that match their skills and preferences.
4. More opportunities for development
Working on various projects allows freelancers to learn, develop their skills and broaden their horizons constantly.
5. Increase in income
Freelancers can work on several projects simultaneously and set their own prices for services, which can increase their income.
6. Independence
As a freelancer, you control your career, choose the projects you want to work with and set your own rules and working conditions.

What are the advantages of working with freelancers for IT companies?

The work of IT companies with freelancers also has its advantages:

1. Flexibility and scalability
The involvement of freelancers allows companies to scale the team flexibly depending on current projects and needs. Companies can quickly attract specialists for complex projects without constant staff expansion.
2. Access to global professional resources
Working with freelancers gives companies the opportunity to work with professionals from different countries and cultures, expanding access to specialists with various skills and experience. Freelancers can be hired on international online exchanges where you can find portfolios and customer reviews.
3. Cost reduction
The involvement of freelancers allows companies to reduce their operating costs since it is not always necessary to pay “salary” taxes for permanent employment, medical insurance, vacation, and other social benefits.
4. Expertise and specialization
Companies can turn to freelancers with a narrow specialization, which helps to get high-quality solutions in a specific area without supporting such specialists on staff.
5. Acceleration of processes
Thanks to a broad base of freelancers, companies can quickly find qualified specialists to complete tasks, reducing the time to hire and start working on a project.

What are the disadvantages of working as a freelancer in the IT field?

Despite several advantages, several disadvantages of IT freelancing should be taken into account:

1. Unstable income
Freelance work can be unstable, as there is no guaranteed monthly income. Periods without orders can be long, which can cause financial difficulties.
2. Project uncertainty
Freelancers may face job uncertainty when customers change requirements or abandon a project, affecting income and time planning.
3. The need for self-organization
Freelancing requires good self-organization and discipline. The absence of a strict work schedule can lead to procrastination and lack of productivity.
4. Lack of social interaction
Working in isolation can lead to a lack of social interaction and loneliness. Freelancers may lack teamwork and communication with colleagues.
5. The need for self-study
Freelancers must constantly monitor industry trends, learn new technologies, and improve their skills independently, which can be challenging for some.
6. Risk of non-payment and disputes with customers
Some customers may not pay for the work, or there may be disputes about the services performed. Freelancers should be prepared for such situations and have strategies to solve them.

Proper planning and approach to work can manage these disadvantages of freelancer work in the IT field.

What are the disadvantages of working with freelancers for IT companies?

Working with freelancers in an IT company can have both pros and cons. Here are some disadvantages of working with freelancers:

1. Lack of control. 
When you work with freelancers, you have less control over their work than regular employees. It is not always possible to be confident in their professionalism, the speed of completing tasks and the quality of work.
2. Possible unreliability. 
Freelancers can suddenly change their work schedules or terminate cooperation without warning, which can lead to delays and problems with project implementation.
3. It takes a lot of time. 
Hiring and managing freelancers takes time and effort. You should pay attention to the search, agreement on the contract terms, training and task management.
4. Communication problems. 
Due to the remote nature of working with freelancers, communication problems may arise. This is possible, for example, due to time zone differences, language barriers, or ineffective communication in general.
5. Privacy and security. 
Due to insufficient security and control measures, there is a risk of confidential information and company data leakage when working with freelancers.

So, although working with freelancers has advantages, IT companies also face a number of disadvantages that need to be considered when deciding to cooperate with them.

How a freelancer can formalize his activities in the IT field

We recommend that freelancers work under contracts concluded with customers and pay income taxes in cases where the payment of taxes is not on the customer’s side. There are several options for registering activities in order to provide IT services in a form that is approved by the state.

1. Activity as a self-employed person with payment of professional income tax

To become a self-employed freelancer in the IT field, you need to:
1. Carry out one or more of the following activities:
– Website development.
– Installation (configuration) of computers and software.
– Computer recovery after a crash.
– Repair and maintenance of computers and peripheral equipment.
– Computer training.

2. Work independently, without hiring employees and contractors.
3. You must not be an employee of the customer, not only during the execution of the order but also three years before that.

When all three signs are present in the activity of a freelancer, and he works remotely via the Internet, you can register as a payer of professional income tax (NAP). This does not require a visit to the tax inspectorate – it is enough to download a free application from the website of the Ministry of Taxes and Duties of Belarus (for citizens of Belarus) and register. In the future, it is necessary to issue checks through the application after receiving payment for services, both in cash and non-cash. Or create invoices for customers if the company asks to issue an invoice to them. 

The usual tax rate is 10% of all income per month, which is automatically calculated by the application. Since the beginning of the activity, the tax has not been levied on amounts up to 2000 Belarusian rubles. Social security contributions are also included in this tax, which must be paid independently every month. 

A freelance NAP payer has the opportunity to work with both individuals and IT companies.

2. Registration as an individual entrepreneur

As an individual entrepreneur, an IT freelancer can provide services to companies and individuals. To register as an individual entrepreneur, you must contact the executive committee at your residence. There is no online registration, so you will need to come in person with a passport or residence permit and a 3×4 or 4×5 photo and fill out an application form for state registration of an individual entrepreneur. It should be noted that individual entrepreneurs are not currently registered in Minsk for technical reasons.

An individual is considered an entrepreneur from the date of submission of these documents. The Executive Committee issues a document and a certificate of state registration the day after the request.

The executive committee also issues notices on registration with the tax inspectorate and the Social Protection Fund.

An individual entrepreneur who has a place of work under an employment contract is obliged to pay contributions to the Social Protection Fund when conducting business.

Income tax on income from the activities of a freelance entrepreneur must be paid every quarter (4 times a year) at a rate of 20%. It is possible to apply deductions from the amount the tax is calculated. Different categories of persons are entitled to deductions. Therefore, it is better to clarify such questions with an accountant.

Contributions to the Social Protection Fund must be paid annually. They are defined as 35% of the income from entrepreneurial activity. You can pay contributions based on the minimum wage in Belarus—626 Belarusian rubles per month—or only for those periods when an individual entrepreneur provides services in the IT sector.

3. Conclusion of a civil contract with the customer

To perform one-time tasks, a freelancer can enter into a civil contract with an individual, an entrepreneur, and a personal income taxpayer. The agreement specifies the type of services, the deadline, and the payment procedure. Upon completion of the work, an act is drawn up. Payment is made to the bank account specified by the freelancer in the contract. A customer who has signed an agreement with an IT freelancer as an individual withholds income tax and contributions to the Social Protection Fund.

How can a freelancer receive payment from customers?

NAP payers can receive cash or non-cash payments. The amounts received should be reflected in the NPA appendix. 
Individual entrepreneurs usually receive payments from customers to their bank accounts.
To receive payment, the customer is sometimes given the bank payment card details required for a bank transfer. In this case, the money is credited to the freelancer’s bank account.
You can receive payments in electronic money.
In Belarus, money transfers to a bank account by phone number are available in some banks.
Freelancers cooperating with the Non-bank credit and Financial Organization “Unified Settlement and Information Space” (NCFO “ERIP”) have the opportunity to accept online payments through the ERIP system. To do this, they must provide the customer with information about the payment method via ERIP or send a QR code. When using this method, freelancers must pay a 1.2% ERIP commission. This method of receiving payments is E-POS.

Several money transfer systems are available in Belarus. At the moment, there are three available systems: Golden Crown, Unistream, and MoneyGram. Before sending a money transfer, freelancers need to clarify the possibility of receiving a transfer in the recipient’s country of residence.

How a freelancer can achieve success in the IT field

To achieve success in the IT field as a freelancer, it is essential to follow several key recommendations:

1. Determine your specialization
The IT field is vast, so it’s essential to choose a specific area where you want to become an expert. This can be web development, mobile development, design, copywriting, software testing, or another location. Specialization will allow you to more accurately identify your target audience.
2. Build your portfolio
Start working on projects that you can add to your portfolio. This will help potential customers to see your professional skills. Update your portfolio regularly and share it with potential clients.
3. Register on freelance platforms
Use popular freelance platforms such as Upwork, Freelancer, Fiverr, and others to find new clients and projects. Create a profile and describe your skills and work experience.
4. Find regular customers
Try to establish long-term relationships with clients who value your work. This will help you ensure a stable income and reduce the time spent searching for new projects.
5. Develop and learn
The IT industry is constantly changing, so it is important to stay current with the latest technological trends. To do so, you should participate in online courses, read professional articles, and attend conferences and seminars.