Whatever sector you work in, there are real benefits to going contracting. In general these are increased income, more flexibility and better opportunities for skills development.
In reality, there isn’t any such thing as a permanent job these days, and many of the perks of being an employee such as final salary pensions, have all but disappeared.
Indeed, with so many firms now seeing contractors as a cost efficient way of maintaining a workforce, its inevitable that the sector will continue to grow.
Financial benefits
Extra money is seen as the most obvious advantage of contracting, and rightly so, as this is the only reason you are working in the first place.
As a contactor you can expect to:
- Earn significantly more than if you were working full time.
- Be tax efficient, working through your own limited company is the best way possible of keeping the biggest slice of your income.
- Get paid for each and every hour you work.
- Offset all business expenses to reduce your tax bill.
Skills development
As a contractor, you will find yourself working with many different types of companies, in different areas of expertise. This will enable you to:
- Get exposed to new processes and ways of working.
- Advance your career without being limited to one employer’s procedures.
- Gain the confidence to undertake new challenges.
Flexibility
Leaving permanent employment and going contracting means that you can:
- Work all or part of the year.
- Have several clients for extra job security.
- Agree more favourable working arrangements.
All of this makes you more valuable to potential employers and with every contract completed, your CV will reflect the increased breadth of experience you have gained.
So, what are the downsides of contracting? Well, that depends on how you look at things, for example you won’t have long term colleagues in the same organisation, but instead should build up a network of contracting contacts. You won’t be in line for employee perks but the extra money earned means that you can treat yourself in any case.
If you are thinking of going contracting or already have an accountant but are not getting the service you expect, please get in touch with AccountsNet today.
