In the past, the main reason for many people joining the contracting sector was because they had been made redundant or simply couldn’t find work. Now, the contracting sector has never been so popular, with people now choosing self-employment because of the fact that it is so rewarding and comes with so many benefits compared to permanent work.
Starting up as a marketing consultant
If you have decided to make the exciting decision to become a marketing consultant, one of the first steps to take is decide how you will be contracting. For example, one option might be to work through an umbrella company. Some people choose this method to start with just to get a feel of how it is to be a contractor but without the added responsibility.
The only thing to point out when it comes to this route is that you are essentially seen as being an ‘employee’ of the umbrella company, meaning that you are treated the same as a permanent worker with regards to National Insurance Contributions etc. meaning that you won’t take home as much as other contractors.
Working as a Limited Company contractor is the most tax efficient method, as you are entitled to a lot more benefits, such as being able to claim back a much wider range of expenses.
Other advantages of contracting, not just as a Limited Company, but in general, include:
- Having more control of your career.
- Having more flexibility – you can work as often or as little as you like (of course, the less you work, the less money you will make) and you will have more choice when it comes to who you want to work with.
- Having the opportunity to potentially earn more than a permanent worker in the same role.
- Being able to claim back expenses that are made wholly and exclusively for the running of your business, which will in turn reduce your tax bill at the end of each year.
The most important thing of all when it comes to becoming self-employed, especially if you are starting up your own company, is to have some sort of business plan in place – know how much you want (or need) to earn, do your research with regards to the market so you know who your competitors are, think about how you will promote your business and reflect on the future and whether you would like to expand or not. These are all vital factors to consider when coming up with a business plan.