If you’re here because you’re considering leaving the comfort of your full-time job to become a contractor, you’ve probably got a few questions. Is the lifestyle for me? Can I work remotely? How do I make sure I pay the right tax?
Paul says the first thing people should know about contracting, is that there aren’t as many barriers to entry as they might think.
If you have the skills and experience, and there is demand in the market for your services, contracting can be a lucrative and empowering career move. You just need to be prepared to shed the “cotton wool” of a full-time job, and still be able to deliver the work.
The trade-off for your new freedom as a contractor is that you’re on your own for everything from tax, insurance, pensions and mortgages to up-skilling and ensuring you have the right tools to complete the job.
Your contracting method is an important consideration – you’ll need to decide whether you want to work for an umbrella company or to set up as a sole trader. In most cases, the tax advantages are greater if you go through a company, even if it’s paying yourself a salary as an employee and director of your own company.
Either way, a good accountant is key. iContract links to some great recommendations for corporate service providers specialising in accountancy, tax, insurance, mortgages and pensions.
Finally you’ll need to decide if you’re going to work from your client’s office, from home or both. If you’re keen to work remotely, you’ll need to consider what you need to remain an effective part of the client’s team – connecting on conference calls, being available to speak on the phone or instant messenger and delivering the work you’re paid to do on time.
iContract launches in September, so make sure you pre-register now to get first access to new roles and contracting information.
Listen to the full podcast here.
We also have a wide range of guides to help you get started in contracting, so be sure to download our contractor resources.