There are so many benefits to being self-employed, not only do you have the type of freedom, control and flexibility permanent workers can only dream of, you could also potentially earn more compared to a full time worker in the same role.
Other advantages include:
- You can work when you want, can take holiday days as little or as often as you wish (although it’s worth remembering you won’t get paid for this time off) and you can potentially have a better work / life balance.
- The majority of contractors can charge a daily or hourly rate much higher than a permanent employee in the same role. Of course, your individual skills and your industry could mean your rates could be even higher.
- You are able to claim back expenses that are made for the running of your business, which can then reduce your tax bill at the end of the tax year.
- You will gain in terms of skills and experience by working with a number of clients in various industries.
Of course being your own boss will come with more responsibilities and there are some risks, with one of these being that you could find yourself in a situation where you are paid late by your client.
Having to chase up a late payment is extremely inconvenient for someone who is self-employed.
Late payments can be an issue for many contractors, with research showing that this can be the cause of many small businesses getting into financial difficulties.
However, the government is working hard at preventing SMEs finding themselves in this situation. On 31st January 2017, the government released a statement about late payment reporting guidance for large businesses; the plan is for large firms to publish details on the time taken to pay their suppliers in order to shine a light on ‘bad practice’.