News, insights and advice for contractors
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Making the decision to leave regular employment and become a contractor can be a difficult decision and depending on your circumstances a hard one if you don’t have all the facts. If you’re wondering whether becoming a contractor is the right career path for you, it’s worth considering using an umbrella company as that can make managing your payroll and administration much easier when getting started.
If you’re faced with information overload and are already confused and need a little light shedding on the subject, let’s run through some questions you may need to ask yourself before deciding to take the umbrella contractor route.
Are you looking for flexibility?What is your ideal goal when it comes to working hours and routine? Contractor jobs can be varied and often work can be more flexible than a regular employed position. As a contractor you can state what hours you are willing to work at the interview stage, so you know where you stand. If you’re looking to come away from the usual 9-5 working pattern, opting for contracting might give you that change you need to see a difference.
Are you looking to earn more?As a contractor, you are a skilled individual hired to do a specific job. Often a job that an employed member of the team cannot do. Therefore, your time is worth more. By becoming a contractor, you can be in a position to negotiate your rate of pay depending on what the job entails.
Are you looking for a chance of varied work?As a contractor, you won’t be stationed at the same place forever. This is a great difference between employed and contract work. You have a choice of the environment and industry that you go into and whether you take a short term or long-term assignment. The chance for variety can be a relief if you don’t like to be in the same place for a long period of time
Do you want to be self employed?Contracting comes in two parts, you can be self-employed or start a limited company and contract from there or you can contract under an umbrella company. If you’re looking for more independence in managing your accounts and finances, you’ll be better off setting up as a limited company. (Our sister company 2020 Accountancy can help you with that process). If you like the idea of becoming your own boss and the way that contracting works but are not so good at the admin and financial side, an umbrella company can take that stress from you. You would technically be employed by the umbrella company and you are paid on the PAYE system with employee benefits etc but have the option of moving from contract to contract as you wish. It offers a security that being self-employed doesn’t give, which is especially helpful when you first get started as a contractor.
Contracting through an umbrella company eliminates the burden of additional paperwork. Timesheets are submitted, and the umbrella company will invoice your client on your behalf and then pay you a wage.
The good news about becoming a contractor is that there is plenty of work available, in a range of industries. This offers job satisfaction and flexibility to work where you want in the environment that you want.If working with an umbrella company, you are also given the security of being paid regularly and on time without the hassle of chasing for payments.
If you’d like to find out more about becoming a contractor, feel free to give us a call, we’d be happy to help or advise and see you on a career path that fits with you and your lifestyle.