For the majority of contractors that the team here at Exchequer Solutions work with, their decision to become a contractor has provided a thriving career that provides a whole host of benefits. Throughout our years in business, we have also met many people considering a career in contracting, who have found it extremely tricky to weigh up whether or not it is the right path to take. To assist prospective contractors in their decision, below we will explore contracting careers in detail and how you can ensure that your contract work is a success.
Benefits of contracting
Flexibility and control
A career in contracting is significantly more flexible than that of a permanent employee. You are able to work when you choose to, how long you work for, with freedom to choose the type of contract you wish to work on and without limitations on holiday allowance.
Variety of opportunities
One of the downsides of permanent employment for many, and one of the main reasons that many turn to contracting work, is lack of variety in the work at hand. With contracting you are free to work alongside many different businesses, across a range of projects, and therefore ensuring a varied CV to attract future opportunities.
Whilst contractor hourly rates can vary substantially on a contract by contract basis, on average a contractor will be earning more than their permanent counterparts. Particularly for those with a great deal of experience and skill in their field, a contractor could find huge financial benefit from entering into a contracting career.
What to consider before contracting
Whilst contracting can provide a number of rewards to both your personal and professional life, there are a number of things you should consider prior to making this leap, to ensure that you are fully prepared.
First and foremost, you will be responsible for sourcing your contracts, and therefore must ensure you are confident in your ability to do so. In addition to this, a thorough understanding of effective credit management and how to manage your administration requirements and knowledge of IR35 legislation are vital components to any contracting career.
Where to turn to for support
There are countless businesses out there that will support contractors throughout their career. From recruitment companies who can assist in sourcing opportunities, to umbrella companies, who will ultimately reduce the amount of administration required, and provide similar benefits to those of employees whilst maintaining the flexibility of self-employment for contractors.
A reputable umbrella company will also be able to help you at each stage of your career, therefore once you reach a certain hourly rate, they will support you in establishing your own limited company and recommend the right PSC accountancy firm to assist you moving forward.
Are you considering a career in contracting this year? Contact our friendly team of experts today for more information on the ideal route for you.