Are you looking for a more flexible way of working? Do you get itchy feet working for the same employer for too long? If you are seeking a less regimented way of working and would like to become your own boss, then a career in contracting could be the perfect choice for you.
There are many benefits of contracting and some disadvantages too which we will talk about later in this article. Thousands of people in the UK have taken the plunge and are now effectively working for themselves, choosing when they work, how they work and who they work for.
A Higher Salary and Less Tax? Where Do I Sign?
- A higher pay rate – if you’ve ever worked alongside a contractor you may have been aware that their rate of pay was significantly higher than yours. Employers pay a higher rate as contractors are more flexible.
- If you contract through your own limited company you will find this is much more efficient when it comes to paying tax and it’s actually easier than you think to set up your own limited company too.
- You can offset any business expenses to reduce the amount of tax that you pay.
A Higher Degree of Flexibility – Be Your Own Boss
- You are effectively your own boss.
- You have the choice and freedom to choose when you want to work. Many contractors take months off at a time before looking for their next contract.
- Contracting often offers more flexible working hours, as you can work from home and/or fit your working hours around your family.
- Finding a new contract is often easier than finding a permanent job.
- Employers often rehire the same contractor when they have another project that needs to be completed.
- Working in a number of different sectors or companies will expand your skill set and work experience.
- Contracting allows you to build a very broad CV with strong references.
The Disadvantages of Contracting
Sorry to bring you down with a bump, but there are some disadvantages to contracting too. For example, because you are a temporary member of staff you will not be entitled to sick pay, a pension or any representation should a dispute arise with your employer. You will also be responsible for managing your own tax bill and any other contributions you need to make. However, there are many contracting companies that can help you with the financial side of things so these disadvantages should not turn you against the prospect of contracting.
More and more companies are seeking contractors with specialist skills, knowledge and experience. The technical and engineering industries are sectors where contracting is very popular for both employer and contractor, and more industries are starting to follow suit. Whatever your profession, if you are seeking a more flexible, profitable and interesting way of working, why not look into the world of contracting?