According to the Trade Union Congress (TUC), the UK labour force is increasingly taking involuntary temporary jobs, with almost half of the rise in employment since 2010 being in this type of role. The most common form of temporary work is contract or fixed-period, but these jobs have fallen by 19,000 over the last two years. And in contrast, casual employment, or work supplied on an irregular basis, has been the fastest growing form of temporary work in the same period.
At the other end of the scale, the current skills shortage in certain business sectors of the UK means that those with the necessary competencies and abilities can reap the rewards of life as a professional contractor. Driving high day-rates and enjoying role and location diversity is attracting many new contractors to the IT, health and engineering sectors.
Making the decision to become a freelancer, contractor or flexible worker, be it by your own volition or not, can be daunting for many. Even deciding on how to trade can be difficult. Some newbies seek the security of the PAYE umbrella model, others want more autonomy through becoming a sole trader.
But of course the most important decision is which commercial contracting and umbrella company to select. Compliance should be the first thing on a new contractor’s checklist, followed by employment protection, professionalism, transparency and reliability. You need to have a responsive and experienced team on your side.
We caught up with two of our own contractors to find out more about the realities of life as a freelancer / contractor.
Pete started contracting seven years ago. As a labourer in the building trade, Pete would consider himself as someone who involuntarily took on a temporary job. Ideally, he would like to be in a permanent role, but is philosophical about his current circumstances.
“I’ve been contracting for seven years now and it all started because the job I landed initially was a six-month contract in construction. The company sent me off to get my unique taxpayer reference number and since then I’ve worked through different agencies doing casual work,” says Pete.
“As much as I would like a full-time job, I’ve been able to do pretty well out of contracting. And that’s saying something, considering what the economy has been like and so many people not working at all.”
It was the economy that persuaded Brad to start a limited company when he relocated by to the UK from New Zealand.
Not being able to find a permanent role that he felt he was suited to, Brad’s interim solution was a contract that resulted in him realising that there were many benefits to being a contractor, including flexibility to be with his family.
“When I considered my options I decided to go the limited company route because my contracts tend to be long-term and this model suits me.
“My advice to anyone is to consider your options carefully, being self-employed can only work if you are disciplined, well networked with contacts that can provide leads to new contracts. Planning is also essential, not just around scheduling new contracts, but also responsible financial planning.
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