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Top things to consider when becoming a contractor

04/12/17 | Advice & Guidance, Limited Company, Tax Advice

Contracting is fast becoming a popular way to work in the UK, with over 15% of the UK workforce now opting for a contracting role over a full/part time employee status.

Why the popularity?

With a new age of entrepreneurship, increased access to online services and the ability to work wherever you have WIFI. There is now an increased demand for professionals to have both the flexibility and time freedom to work around their schedule and earn rates a salary wouldn’t necessarily offer.

Whether you are looking to cut down your working hours, reduce your commute or spend more time with loved ones, contracting is becoming a popular option to support you in finding that work/life balance whilst still furthering your career.

 

PeoplePerHour founder Xenios Thrasyvoulou said:

“We predict by 2020, 50% of the workforce will be self-employed and contributing more than £51 billion to the UK economy. The workforce is shifting and the model of full-time employment is becoming obsolete. It’s almost impossible for businesses to ignore this evolution.”

Although the number of contractors within the above statistics is not defined, it displays the growth of self -employed, freelancing and contracting roles, and the need for businesses to adopt more flexible working arrangements.

 

Here are our top considerations before making the decision to take a contract role

  1. Flexibility

Contracting allows you to organize your working week day to day, often you will be hired to complete a specific project with a deadline, therefore how you complete that task is completely up to you. The perks being that if you require a mid-week day off or have an event you cannot miss, there is no limitation if you are meeting the expectations of your clients.

If you find yourself in a situation where you are working longer days, 7 days a week regularly, it may be time to reconsider which contracts you are accepting.

 

  1. Organization

Becoming a contractor means you will be your own boss, which means you are going to have to be extremely disciplined with your diary and motivated to proactively search for your next project. Contracting in no place for procrastination, it requires you to be 100% all in, in order grow and build a sustainable business.

 

  1. Take Control

Being a contractor means you have complete control in your vision for your career, you can choose which contracts you decide to accept and which industries you would prefer to work for. You are you own authority, there will be no need for micromanagement or office politics, on the downside, if you are looking to build relationships and networks, dependent on the length of your contract and your exposure to people, it may leave very little time to socialise.

 

  1. Changes of Income

It is possible to earn a substantial amount more than a role with a salary, some IT professionals have seen their income double. There are many financial perks to contracting, however you will not receive many of the financial incentives that an employed role can offer, such as childcare vouchers, paid holiday and maternity pay.

It is vital to seek professional support when it comes to accounting and financial management, trying to achieve these elements alone will not only cost you valuable time, where you could be out earning, but it could also cost you financially. Read more about our affordable service offering here, and book your free consultation with one of our accounting support team.

If you are in a position where your employed role could become a contractor position, or you are already thinking about taking a leap in entrepreneurship, then give our team of Sidekicks a call and we will be happy to guide you in setting up your limited company and making the most of a self-employed income.

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