Contracting and freelancing in the past couple of years has never been more popular. With the promise of professional independence, a higher take home pay than permanent employment and no glass ceiling, there are very few reasons not to take the leap.
Demand for skills
The ongoing dramas surrounding Brexit and other Government promises to deliver infrastructure projects and technology change, are still creating huge demand for IT and related skills across the UK.
Employers are still preferring to keep employment costs under their control by engaging flexible workers. And anti-avoidance rules are also settling down with engagers being more pragmatic and accommodating (rather than issuing blanket edicts) in order to attract and retain talent.
All good news for contractors and freelancers.
Are you ready to take the leap into Limited?
Contracting can be an exciting and lucrative career move but it’s not for everyone. On the plus side you’d be your own boss, be able to choose your hours, make more money and gain a variety of experience. On the down side, contracting can be lonely, and you’re advised to keep a financial reserve in case of quiet times.
If you’re ready to take the leap, then there are always choices of which trading model you should trade under. As a rule of thumb, if you’re a ‘Knowledge Worker’ or skilled in a particular trade or profession, then a Limited Company can provide you with the best solution from several perspectives. For individuals who are independent and outside of supervision, direction or control of the hirer, there will be advantages in your take home pay. You’ll have increased flexibility and commercial credibility, but you’ll have to protect yourself for illness or inability to work (usually through insurances).
There are financial benefits in optimising the way your company is set up and run, so it’s advisable to take professional advice from the outset. So ask for assistance from a contractor accounting professional from the beginning and get off to a good start. Alternatively download our free guide: Venturing into contracting for all the advice and support you’ll need in order to make the right decision for you.
Contracting advice from experts
If you’re thinking of setting up as a Limited Company contractor, Intouch can offer so much more than just an accounting service. From set-up and insurance to tax and IR35 advice, your Personal Accountant will be there to help you start your journey with confidence.
We know that taking your first step into contracting is a big decision so we’re happy to chat through any questions you have even if you’re not ready to get going just yet. Get in touch and speak to one of our accountants today.