UK businesses are saving over £40,000 per month by hiring freelancers. The figure comes as pressure mounts on the government to scrap the controversial IR35 tax rules
New data from Fiverr’s UK Future Workforce Index shows 35% of companies are making these savings. The average monthly saving exceeds £33,000. The findings highlight why businesses are turning to flexible workers during tough economic times.
Hiring crisis drives freelancer demand
Traditional hiring is struggling. Some 35% of decision makers say filling full-time roles is difficult.
Nearly half (49%) cite poor quality and limited talent availability as the main barrier. Another 41% point to high salary expectations.
Businesses are responding by hiring freelancers. Some 87% plan to engage freelancers up to 10 times in the next six months. Around 40% are working with more freelancers in 2025 than ever before.
Time savings add up
The benefits go beyond cost savings. A quarter of business leaders say freelancers save them over 20 hours per week.
This efficiency gain is crucial as companies try to stay lean and competitive.
AI skills gap creates opportunity
One in five business leaders now rely on freelancers for AI skills their teams lack. Some 38% are actively seeking new hires with AI expertise.
Freelancers are capitalising on this demand. Nearly half (46%) report increased earnings thanks to AI work. Another 44% charge premium rates for AI-driven projects.
The AI toolkit has become standard for freelancers. Some 70% use ChatGPT, whilst Google (38%), Gemini (33%) and Microsoft Co-Pilot (24%) are gaining ground.
Over half say they cannot imagine working without AI. Some report saving two full workdays through AI assistance.
IR35 remains a major barrier to economic growth
Despite the benefits, outdated regulations are holding back growth. Two in five business leaders cite HMRC bureaucracy and IR35 tax legislation as major obstacles.
Freelancers feel the impact directly. Over half (51%) believe IR35 is harming their careers. Another 55% say current tax laws deter businesses from hiring them.
The government launched its 10-year industrial strategy on Monday. Dave Chaplin, CEO of IR35 Shield, said tax reform must be central to reducing regulatory burdens.
“The Industrial Strategy’s focus on reducing regulatory burdens and creating a stable business environment is a welcome step forward,” said Chaplin.
He continued, “Tax reform must be central to the changes aimed at removing tax uncertainty, such as the off-payroll IR35 working rules, which stifle innovation and discourage the use of flexible workers that modern businesses rely on.
“If the government is serious about delivering UK business growth, tax reform must happen to help empower growth. We must unlock the full potential of our flexible workforce to drive productivity in an increasingly competitive global landscape.”
Political support lacking
Confidence in government support remains low among freelancers, according to Fiverr. Only 39% feel adequately supported by politicians. Two-thirds (66%) believe the current administration is failing to meet their needs.
The call for IR35 reform is growing louder as businesses prove the value of flexible working.
Michele Tropeano, UK Country Manager at Fiverr, says the UK Future Workforce Index shows a clear shift: freelancers are no longer a fallback; they’re driving business growth and leading the charge on AI adoption.
Tropeano says, “Portfolio careers are moving mainstream and becoming the backbone of the UK workforce. But to truly harness this potential, we need modern policies and systems that support this new way of working, not hold it back.”
Freelancers take control
Beyond the headlines, freelancers are reshaping how work gets done. Over 80% now set their own hours. Nearly three-quarters dictate their own rates.
The financial rewards are clear. Some 70% earn more than they did in full-time employment. Income diversity is also key, with 70% relying on at least two income streams.
Gender pay gap persists
Despite new opportunities, gender disparities remain. Only 62% of women feel fairly paid, compared to 71% of men.
Fewer women are taking AI projects (46% versus 51% of men). Men are also more likely to charge premium rates for AI work.
Michele Tropeano, UK Country Manager at Fiverr, said freelancers are driving business growth and leading AI adoption. But modern policies are needed to support this new way of working.
The data shows freelancers are no longer a backup option. They have become essential to UK business success.
The question now is whether policymakers will catch up with this workplace revolution.
Sign up for The Freelance Informer newsletter:
