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.
Have you been made redundant?
In an uncertain economic climate, organisations are putting hold on taking on new employees, people are facing redundancy and others are finding themselves in limbo. If this sounds like your situation, don’t worry, there is a solution!
With companies taking on fewer permanent employees, they are turning to contractors to fill the gaps and to be more cost effective. If you’re wondering what the next step for your career could be - now is the perfect time to become a contractor.
If you’ve got a specialised skill set and are ready to put them to work, you could be looking to make your usual annual salary in less than a year. Good news is that contractors can charge more for their services than regular employees. This is due to contractors being brought in to complete specific tasks, usually speciality jobs that employees cannot do or do not have time for and therefore company will pay a better rate of pay to get jobs done - not worrying about employing a permanent member of staff for that role.
Flexibility is a great reason to become a contractor. There can be so much more opportunity to work the hours you choose, take the time off you require and set your own pay when you are a contractor and creating your own working environment. Flexibility is one of the top reasons people are choosing to contract, providing work-life balance and being able to enjoy the precious moments in life without feeling guilty.
If you establish yourself as a recommended contractor and people are queuing for your services, you’ll also have the added bonus of being able to choose which clients you work with and those you’d prefer not to! The more you build your good reputation, the more flexibility you can have in your business. This will make it easier to move from assignment to assignment without the worry or hassle in finding work.
Research the market. As with anything, it’s good to research what is happening in your industry. If you’ve been made redundant, you’ll already be looking at what else is out there for you but you need to do the same when it comes to looking into contracting. Becoming a contractor is not a snap decision to make but can be the best decision you make when you do come to that point. Jump onto LinkedIn to discover what opportunities may be out there at the moment and networking with past colleagues or local known organisations where opportunities may present themselves.
Becoming a contractor potentially gives you great financial security as the earning power can be heightened in the various opportunities arise. But we suggest if you’re just starting out as a contractor, using an umbrella company to help you get your feet off the ground.
Why umbrella?An umbrella company can help make the transition as smooth as possible, giving you the security and support to back you up as you start your journey. An umbrella can give you stability and provide valuable advice if you’re not used to a contractor lifestyle. The difference between umbrella and independent contracting, is that an umbrella will perform your payroll services, meaning you don’t have to worry about invoicing clients, or working out tax and national insurance contributions - it’s all done for you! You effectively become an employee of the umbrella company but with the flexibility to be your own boss. Therefore, it is the perfect way to start out as a contractor, test the water and ensure that you’re happy with working in this way. Then when it does works well, an umbrella can help you transition into becoming a limited company contractor and growing your business even further.
If you can relate to any of the above and you’re in a position of looking to change your career direction, we’d love the opportunity to talk with you to see how we can help you grow a successful and happy contracting business.