News, insights and advice for contractors
Stay tuned to the NWM blog for our latest company news, in-depth industry commentary and insights as well as useful guides on finance and compliance for contractors.
You’ve worked hard all month, you’re busy building a business, you have contracts lined up but are you taking home the pay that you expected to at the end of it all?
Evaluate your situationTaking a step back to re-evaluate your situation is always a good idea, especially when you own a business. Learning more about your incomings and your outgoings will give you better understanding of how your business runs and what you should be expecting at the end of the month.
Benefits of being a contractorOne of the benefits and most important aspects of being a contractor or freelancer is the work-life balance and flexibility available to you as you decide on your independence and working pattern.
Consider using an umbrella companyIf you’re a contractor using an umbrella company, it can be a good idea to have regular contact with them to know that you’re doing everything needed to keep your taxes down and running your finances as should be. Using an umbrella company will mean that you become in affect, an employer of the umbrella company and you will receive a regular wage as you would in an employed position. This can have its benefits for contractors who are just starting out and are looking for minimal distraction from paperwork and the hassle of payroll. You still have the flexibility of moving from contract to contract and working in the way that you want your business to go in. And the plus side is that you’re entitled to holiday pay when you decide to take a break!
Evaluate your goalsWherever you decide you want your contracts to take you this year, it’s always good to have a plan and a purpose behind what you do. Re-evaluate where you are now and what you want to achieve. Is what you did last year what you want to achieve this year or is there more to be achieved? Plan where you want to go, establish what income you need to be earning in order to be comfortable and how your flexible work-life balance comes into that.