The world of contracting is becoming increasingly more popular among workers of all ages and backgrounds across the UK.
There are so many benefits that come with being self-employed, with many people being so drawn to the sector due to the increased flexibility that could offer you a much better work / life balance compared to permanent workers.
Other benefits of contracting includes:
- Having a lot more freedom and control over your career, such as being able to work whenever you want and choosing to take holiday days as little or as often as you wish (although, just remember that you won’t get paid for this time off!)
- Being able to claim back so many expenses that are made for the running of your business, which can then reduce your tax bill at the end of the tax year. Examples include: travel, accountancy fees, advertising or marketing costs, your company’s commercial rent, heating and lighting and office items, such as computers and stationery.
- Having the opportunity to gain a wealth of skills and experience by working with a number of clients in various environments.
Of course with most things in life, there are a few downsides to contracting but this is mainly things such as having more responsibility than your permanent counterparts with increased paperwork and having to fill out tax forms correctly and on time – but as long as you have a good contractor accountant, this shouldn’t be an issue.
It is also important to remember that as a contractor, you are solely responsible for your own success – which means having the motivation to get out there and find yourself work on a regular basis, making sure that you are organised enough to find a new contract when you know that one is coming to an end.
And, once you find that work, knowing how much you want to charge…
Setting your contractor rates
As mentioned previously, there are numerous benefits that you will find as a self-employed worker, one of them being that you will have the opportunity to charge clients a daily or hourly rate much higher than a permanent employee working in the same role.
There are many reasons as to why this is. Firstly, as someone who has dedicated themselves to a particular skill, it means it is likely that you are highly skilled in your field – there’s also the fact that you won’t be entitled to holiday and sick pay (saving a business additional costs that they have to spend on their own staff).