Freelancing offers incredible freedom and flexibility, but it can also create uncertainty when it comes to financial services. Many freelancers worry whether money transfer services like Remitly will accept their applications or recognise their income sources.
The answer is straightforward: yes, freelancers can absolutely use Remitly to send money home to their families and loved ones. Your employment status doesn’t prevent you from accessing reliable international money transfer services.
However, there are some important considerations that freelancers should understand about using money transfer services, including documentation requirements and best practices for smooth transactions. This guide will walk you through everything you need to know about sending money internationally as a freelancer.
What Remitly Needs from Freelancers
Remitly requires the same basic information from freelancers as it does from traditional employees. You’ll need to provide:
Personal identification documents: A valid passport, driving licence, or national ID card to verify your identity.
Proof of address: A recent utility bill, bank statement, or council tax bill showing your current address.
Payment method: A debit card, credit card, or bank account to fund your transfers.
The verification process is designed to comply with international regulations, not to exclude freelancers or self-employed individuals. Remitly understands that people work in various arrangements and welcomes customers from all employment backgrounds.
How Freelancers Can Verify Their Income
While Remitly doesn’t typically require extensive income verification for standard transfers, having proper documentation of your freelance income is always beneficial. Here’s what you can use:
Bank statements showing regular deposits from clients demonstrate consistent income flow. These are often the most straightforward proof of earnings for freelancers.
Invoice records and payment receipts from clients provide clear evidence of your business transactions and income sources.
Tax returns or self-assessment documents offer official recognition of your earnings and professional status.
Accountant letters can verify your income if you work with a professional accountant who manages your finances.
Keep these documents organised and easily accessible. While you may not need them for every transfer, having them ready can speed up any verification processes.
Best Practices for Freelancer Money Transfers
- Send transfers regularly: Consistent transfer patterns can help build a positive history with money transfer services. Regular smaller amounts often process more smoothly than infrequent large transfers.
- Use descriptive transfer purposes: When asked about the purpose of your transfer, be specific. “Supporting family” or “Living expenses for parents” are clear, legitimate reasons that help processors understand your transfer.
- Keep detailed records: Maintain records of all your international transfers, including dates, amounts, and purposes. This documentation helps if you ever need to explain your transfer patterns.
- Start with smaller amounts: If you’re new to international transfers, begin with smaller amounts to establish a transfer history before sending larger sums.
- Ensure consistent information: Use the same recipient details and personal information consistently across transfers to avoid delays or additional verification requests.
Common Concerns Freelancers Have
“Will irregular income affect my transfers?” Freelance income naturally fluctuates, and Remitly understands this. Your transfer amounts can vary based on your monthly earnings without causing issues.
“What if I don’t have payslips?” Payslips aren’t required for money transfers. Bank statements showing your income deposits work perfectly as income verification if needed.
“Can I send money if I work for international clients?” Absolutely. Many freelancers work for clients worldwide, and this doesn’t prevent you from using money transfer services.
“Will multiple client payments look suspicious?” Receiving payments from various sources is normal for freelancers. This payment pattern is well-recognised by financial services.
Managing Multiple Currency Earnings
Many freelancers earn in different currencies depending on their clients’ locations. This can actually be advantageous when sending money internationally:
- Currency matching: If you earn in the same currency you’re sending, you can avoid double exchange rate conversions.
- Timing flexibility: With irregular income, you can time your transfers to take advantage of favourable exchange rates.
- Amount flexibility: You can adjust transfer amounts based on your monthly earnings and current exchange rates.
Tax Considerations for International Transfers
While Remitly handles the transfer process, you’re responsible for understanding the tax implications of sending money internationally:
- Record keeping: Maintain detailed records of international transfers for tax reporting purposes.
- Source of funds: Ensure your transfers come from declared income to avoid complications with tax authorities.
- Recipient obligations: Understand that large or regular transfers might have tax implications for recipients in their home countries.
- Professional advice: Consider consulting with a tax professional familiar with international transfers and freelance income.
When Additional Documentation Might Be Required
Occasionally, you might need to provide additional information:
- Large transfer amounts: Transfers above certain thresholds may require additional income verification.
- Frequent transfers: Very regular large transfers might prompt requests for income documentation.
- Regulatory requirements: Some destination countries have specific requirements that might need additional paperwork.
- Unusual patterns: Transfer patterns that differ significantly from your established history might require explanation.
Frequently Asked Questions
Do I need a business bank account to send money as a freelancer?
No, you can send money from your personal bank account. Many freelancers use personal accounts for their business income, and this doesn’t prevent you from using Remitly.
Can I send money if I’ve only recently started freelancing?
Yes, new freelancers can use money transfer services. You’ll still need to meet basic identification and verification requirements, but employment history length isn’t a barrier.
What if my income varies significantly month to month?
Variable income is completely normal for freelancers. You can adjust your transfer amounts based on your monthly earnings without any issues.
Will sending money home affect my tax status as a freelancer?
Sending money internationally doesn’t change your tax status, but you should keep records of transfers and consult with a tax professional about any reporting requirements.
Can I use Remitly if I work for just one client as a freelancer?
Yes, having a single client doesn’t prevent you from using money transfer services. Many freelancers work exclusively with one client while maintaining self-employed status.
Your Financial Freedom Shouldn’t Be Limited
Freelancing gives you control over your career and income. Your money transfer options should be equally flexible and reliable.
Remitly serves customers from all employment backgrounds, including freelancers, contractors, and self-employed individuals. Your professional arrangement doesn’t limit your ability to support family members or manage international financial obligations.
Start with a small transfer to experience the process firsthand. Keep your documentation organised, be consistent with your information, and maintain clear records of your transfers. With proper preparation, sending money home as a freelancer is straightforward and secure.