Thinking of taking that leap to work for yourself and become a contractor? This decision could be the beginning of a very successful venture and possibly the best decision you have made for yourself and your family. Becoming a contractor can be a little worrying if you have no experience in it, however many professionals are switching to contracting on a daily basis and have never looked back. Contracting allows you to be more flexible with higher financial gains, allowing you to have more time and money to dedicate to your family and other investments. Contractors can earn over £100k a year in non-management roles. Similar salary levels are highly unlikely in the permeant market.
If you are looking to commit to contracting, one of the key decisions you must make is how you are going to structure yourself. Many new contractors decide to either work through their own limited company as a director, or as an employee of an umbrella company. The best route for you will depend on your own circumstances. There are also some limitations depending on the sector you are working within and we suggest you give us a call directly for a free consultation regarding this.
MAXIMISING YOUR INCOME
It is no secret that contractors tend to take home more of their hard-earned pay than their employed counter parts, but just how much? You can use our ‘Take Home Calculator’ to obtain an idea of what you can take home. The take home needs to justify the benefits lost from not being a permanent employee. We are also happy to evaluate this for you and provide honest advice on whether the financial gain reflects the benefits you will be neglecting, such as workplace pensions and healthcare cover. Contracting can certainly provide a higher income, in addition to this you can get extra pay for overtime worked, less politics within your workplace, full control over training and more freedom for taking time off.
CLAIMING YOUR EXPENSES
Contracting can lead to some costs; whether it be a new laptop, or cost of travelling to clients. Fortunately, you can claim tax relief on legitimate business expenses. We will provide a complete guide and also arrange a face to face meeting regarding all the possibilities of tax relief on these expenses. It is very important to know what expenses you are allowed to claim as this will ensure your take home pay is higher.