Contracting has become an increasingly popular career option in recent years, providing flexibility, autonomy, and often high earning potential. For those who have recently left the Armed Forces, contracting can be an enticing prospect; however if it’s a method of working you are unaccustomed to it can certainly seem daunting. If you’ve been thinking of embarking on a contracting career, here are some of the key areas to consider:
What are the benefits?
Contracting offers a range of advantages over traditional permanent employment, particularly for individuals transitioning from a military background. As a contractor, you have the freedom to choose the projects you work on and the clients you work with. This level of control allows you to tailor your career to suit your interests, skills, and lifestyle, and for individuals accustomed to the structured nature of military life, the autonomy that contracting provides can be a refreshing change.
Contractors often have the potential to earn more than permanent employees, particularly in industries where specialist skills are in high demand. Many contractors also enjoy greater flexibility in terms of their work schedule and location. This flexibility can be particularly beneficial for those transitioning from the military, as it allows for a better balance between work commitments and personal priorities.
Finally, contracting can offer valuable opportunities for professional growth and skill development that you wouldn’t experience as a permanent employee. By working on different projects with diverse teams, contractors can acquire new skills, broaden their experience, and expand their professional network.
Searching for contracting jobs
One of the first steps in becoming a contractor is finding suitable work. There are a number of generic job boards which cover multiple sectors and span the UK, such as CV Library, Indeed or Total Jobs. Networking can also be an effective way to find contracts - talk to people in your industry, join professional groups on LinkedIn, and attend industry events.
However, many contractors will choose to engage with a dedicated recruitment agency who can support them in a more meaningful way – connecting them with companies who are a good cultural match or, particularly in the case of a veteran, companies who can take advantage of the transferable skills an individual has acquired throughout their service. NRL have helped contractors find exciting new challenges with prestigious clients since 1983, and many who work with us cite the friendly, bespoke experience they receive as one of the many reasons they come back time after time to find their next role through us.
Payment Models
As a contractor, you’ll typically have a choice of our payment models to choose between when working on each assignment – Pay As You Earn (PAYE), umbrella, Limited company and CIS. Each model has its own pros and cons, and while it’s important to be aware of how each of these functions, they serve as a reminder of the biggest reason people choose to work as a contractor – the flexibility to take ownership and manage your own career.
As a recruitment business, we’re legally unable to help you decide which trading model is best for you; but there are many independent financial advisors who can walk you through each of the different options available before making a decision.
Limited companies and IR35
If you opt to set up a limited company, there are a few things to be aware of. You will need to register your company with Companies House and HMRC, and set up a business bank account. You will also need to keep detailed records of your income and expenses, and file annual accounts and a tax return.
You’ll also need to be very aware of IR35, a tax legislation that affects contractors who work through their own limited company. It is designed to prevent people from using a limited company to reduce their tax liability, when they are essentially acting as an employee. In practice, this means that if you are deemed to be inside IR35, you may have to pay more tax and National Insurance contributions than if you were outside IR35. It is important to be aware of your IR35 status and to seek professional advice if necessary. If working via a Limited Company is your preferred choice, you may find our IR35 Contractor E-book a worthwhile read to ensure you know the ins and outs of the legislation.
Securing your contracting career for the long term
If you do embark on a contracting career, it’s always crucial to ensure you constantly plan for what’s next after your current assignment. Consider setting up a website or social media profile to showcase your work and make it easier for potential clients or recruiters to find you, and if you have previously engaged with a recruitment agency to find your current role, consider reaching out before you are due to finish your assignment to enquire if there are any other suitable opportunities available in the near future.
Contracting can be a fulfilling and financially rewarding career choice for those who have recently left the Armed Forces, but while it offers unique opportunities and advantages, it is important to weigh these benefits against the challenges and risks associated with this model of employment. Seeking advice from experienced contractors or professional advisors can help you navigate the transition into contracting successfully while maximising the benefits it can offer. Our friendly team of experts at NRL are also more than happy to help Armed Forces veterans embark on prosperous new career paths, so if you’d like to find out how we could support your move into the world of contracting please feel free to connect with me.