Often, when people say they are giving up their permanent job to become a contractor, they get a lot of funny looks from colleagues and friends who can’t believe they’d give up a regular salary to go it alone. That being said, there are some definite advantages to being a contractor that can outweigh the security a salaried position provides.
Our preferred contractor insurance provider, Kingsbridge Insurance recently blogged about the benefits contractors can expect from their chosen professional field. Here, they share their top 5.
1. Flexible working
Although the UK is getting better at flexible working, it’s still not as commonplace as in some of our European neighbourhoods. For many people, the nine-to-five grind doesn’t actually suit. As a contractor, depending on your contract, you decide when and where you work. Remember though, some clients may well prefer you to work from their premises which will usually mean you have to adhere to their office hours.
2. Better pay
Generally speaking, due to their specialisms and expertise contractors and freelancers make more per hour or per day than their salaried counterparts. Plus, since contractors are able to claim allowable business expenses when they complete their tax return, they also have a higher rate of take-home pay. This means you can earn more money for less time and it can help to offset the fact that, as a contractor, you won’t get paid holidays, sick pay and other benefits.
3. Improved work-life balance
‘Work-life balance’ is a phrase that gets thrown around a lot these days, but that doesn’t mean it’s not important. The flexibility of contract work means that you can do more of the things you love, whether that’s spending time with your children, indulging in a hobby or socialising more with your friends. If you’re happier and more relaxed, you should see your work improving too.
4. More career control
As a contractor or freelancer, you can steer your career in whichever direction you want it to go. So if there’s a particular client you don’t want to work with, no one’s making you. If you want to pursue a certain avenue of work, go ahead and explore it, it’s your career to design however you wish!
Contracting can have as much (or as little) variation as you like. One of the worst things about permanent employment can be the repetitiveness of going to the office and doing the same tasks day after day. As a contractor, you can ensure that your days are varied either by taking on a range of different clients, or by simply organising your week so that you have different tasks every day. It could even be as simple as working from a different location each day. Whatever works for you, you can make sure you’re never bored.
If you’re thinking of making the switch to being a contractor and need expert contractor accounting advice, speak to one of our team here at Intouch Accounting. Or if you’re needing to organise your insurance, contact Kingsbridge Insurance on 01242 808 740.
This blog has been prepared by Intouch Accounting. While we have made every attempt to ensure that the information contained in this blog has been obtained from reliable sources, Intouch is not responsible for any errors or omissions, or for the results obtained from the use of this information. This blog should not be used as a substitute for consultation with professional accounting advisers. If you have any specific queries, please contact Intouch Accounting.