In today’s competitive employment climate considering contractual work is a perfect option for some. Becoming a contractor can have numerous advantages in a number of industry sectors compared to a ‘permanent job’. If you have considered becoming a contractor it would be wise to understand all the options available to you including its advantages and risks.
Advantages
- You are your own boss
- Being able to work where and when you chose to
- Pay is higher than that of permanent workers in the same position
- Your work is more focused and in a direction that you enjoy working within
- You will have an extremely diverse and striking resume
- Some contractual work have a working period of around 9-12 months and then you are able to take around 2-3 months off.
- Complete control of financial affairs
- Access to the flat rate VAT Scheme
- Claim expenses
- Tax efficient
- You are running your own business and you are your own boss.
Disadvantages
You are essentially running your own business therefore you will have more administration to deal with. However to lighten the administration load acquiring an accountant can help with this. There are no company pensions, paid holiday, or sick pay however these loses are sometimes reflected in a better net income because of its nature as a contractual job.
Already a Contractor
If you are an existing contractor or freelancer the most beneficial way of saving money is by using a Limited company over an Umbrella company as it is the most tax efficient, ensuring you are keeping more of your hard earned money. The advantage of working though a Limited company can be far more financially rewarding. Thats why we at true dynamic advise our clients to choose limited company because of the following advantages: