You may well enjoy a long and fulfilled career in full-time employment, but have you considered the wide benefits of becoming a contractor?
If so, it’s likely that you’ll be looking to establish yourself as a self-employed specialist who’s available for one-off projects in your particular area of expertise.
While giving up job security can undoubtedly be daunting, the contractor career path can be even more rewarding and the benefits may outweigh the potential drawbacks. You may even discover more certainty in your career, with many believing it is the future of employment.
Indeed, if you boast the sort of skillset that businesses in your chosen area are willing to pay for then you can command a very good, secure living as a contractor.
You also won’t be alone – there are some two million contractors working across the UK, contributing around £119 billion to the economy.
Flexibility is often a key attraction of becoming a contractor, and it’s easy to see why. Effectively, you will be your own boss. While you’ll need to commit to a contract once you’re on a job, you can decide where you work and what you work on, and when you take holidays.
Focus on the work you most enjoy
Contracting also gives you the luxury of being able to focus on the work that you most enjoy and excel at, while achieving a better work-life balance.
Enhance your skills development
Furthermore, you’re free to take roles spread across a wide spectrum of disciplines and locations which can significantly enhance your skills development. When it comes to furthering your career, the importance of improving skills through learning and qualifications can never be underestimated. Thanks to this varied working life, you will build a unique skillset which will in turn make you more attractive to future clients.
Setting up as a limited company gives you greater control over your finances
Setting up limited company will allow you to run your business. Limited companies have their own legal identity so they can own assets in their own right and are responsible for their own income and outgoings, meaning that your company finances will be completely separate to your personal finances. When a limited company makes a profit, it is owned by the company. As the limited company director you will be an employee of your limited company, so your company can pay you a monthly salary. In other words, you will be the chief beneficiary of your skills and expertise, rather than a full-time employer.
You can find further tips on that here.
Earn more money
It’s quite simple - contractors can earn more money than employees do. Contractors are in the enviable position of receiving a premium for their services and also take home more than their full-time peers thanks in part to the ability to pay less in taxes and deduct their expenses.
You don't have to lose out on benefits
There may be other positives to contracting that you hadn’t considered. For instance, many believe that not having a full time job means that you’re losing out on benefits packages, but that doesn’t have to be the case. Sometimes third party companies offer paid holidays, life insurance, health plans and more to contractors. If you’re not able to get those benefits packages, then it’s an opportunity to put together a tailor-made package of your own that really works for you.
Contracting may well be for you – so why not talk through your options with Momenta and find out more about our vacancies?
You can also find out more on starting out as a contractor here