More people than ever are choosing to become contractors rather than full-time employees. The reason?
Well, there’s more than one! There’s a vast range of benefits that come with contracting. One of the most reported benefits is a desire to have more control over how we live our lives. People are tired of the traditional, 9-5 and it appears this rigid structure may soon be a thing of the past.
- Flexibility: One of the things you’ll love about being a contractor is the flexibility. All of a sudden you have the opportunity to choose the hours that suit you – for example, working long days on Monday – Thursday so you can take a three day weekend.
Having the flexibility to arrange your work day to suit your personal needs has shown to reduce stress and benefit mental health significantly.
- Earning Potential: This will likely be one of the first things you notice, and that’s because a contractor’s rate can be as much as double the rate of a full-time employee. It is much more acceptable to negotiate your desired rate as a contractor, and it’s up to you if you want to take on multiple projects.
- Variety: Contracting and variety go hand in hand. As a contractor not only do you have the opportunity to change projects often, but you can also work in entirely different places. Some people even choose to work remotely, allowing them to work from different cafes or coworking spaces each day.
- Tax Benefits: Who wouldn’t want the opportunity to take home a more substantial portion of their wage? Many contractors set themselves up as a limited company which means they can save on their liability to income tax. Which basically means a significantly higher portion of your earnings will reach your pocket (as long as you don’t spend it on cocktails first.)
- Offset Business costs: Contractors pay less tax and can claim their expenses. Things like laptops, travel and even lunch often qualify to be expensed. However, this is subject to each individual limited company, and what you offer. It’s important only to claim things that are directly related to your work.
Now you know the benefits of contracting, but what are the downfalls? One of the most significant issues is the admin that comes with managing your own business. If it works out be cost-effective, some people choose to pay companies to take care of this for them.
It’s important to understand the risks involved. It is highly recommended that anyone considering becoming a contractor seeks advice from industry professionals. Make sure you do your research and always ensure you’re abiding by the laws and rules associated with contracting.
So, yes there are some disadvantages of contracting, but the advantages of taking home more money, and having more freedom and variety seem to be the forces that are driving more and more people to make the leap!
If you want more information on contracting, visit: https://www.icontract.co.uk/
and download our free ‘Contracting Guide Book 101.’