Are you currently working within project management and thinking of becoming a Project Management Contractor? There are many positive aspects of choosing to work as a contractor and now is the perfect time to enter the industry, with more companies than ever realising the benefits of hiring short term staff, with specialist skills to help them succeed on specific projects. The result of this is that there is an abundance of demand for experienced contractors, making it easier than ever for those that are new to the industry to find roles to suit them.
There are many reasons why you might choose to become a Project Management Contractor. Whether you are looking for a change of pace in your career, have been made redundant and are struggling to find a permanent role to suit your skill set or just really want to be your own boss, you will benefit from increased flexibility and the opportunity to work within a wide array of different environments, when you choose the versatile life of a contractor.
Enhanced Rates of Pay
Of course, one of the main benefits of choosing to work as a contractor is the increased financial reimbursement. The daily rate for a Project Management Contractor is considerably higher than the daily rate you would receive for completing a similar task within a permanent role. Your earning potential will depend on your location, your experience and your specific skillset, but Project Management Contractors can expect to earn between £250 and £600 per day. It is important to remember that when working as a contractor, you are responsible for paying your own tax and national insurance contributions and also covering your own sick pay, holiday pay and pension contributions; but most contractors still have a higher annual take home than their non-contracting counterparts.
If you are considering starting your career as a Project Management Contractor and wish to retain as much of your income as possible then you are advised to establish a Limited Company. Contractors working under an umbrella company retain between 60-65% of their income, on average, whilst contractors who establish their own Limited Company can retain between 70-80% of their annual income as take home pay. The process of establishing your own Limited Company is surprisingly simple:
- Choose your company name and register your Limited Company
- Open a business bank account: if you have any questions about this, or would like any advice, then your accountant will be able to help you.
- Spend 15-20 minutes each month updating your business accounts and conducting any necessary business administration
- Hire the services of an accountant specialising in working with contractors through limited companies, who can take care of your incoming and outgoing cash flow and file your tax returns on your behalf, in the most cost effective way.