Contracting for the first time can be an exciting new challenge and adventure in your career. There are advantages to contracting within every industry sector, including greater opportunity for skill development, increased flexibility and financial rewards. As you develop your contracting career, you will find that a wider range of contract work becomes available to you and you will acquire skills and experience working with various clients. In this sense contracting becomes your business.
Contracting is different to permanent employment, as you have the freedom to choose how you will be paid. It’s important for you as a contractor to set up your business so that you remain compliant with tax regulations set out by HM Revenue & Customs (HMRC) whilst also increasing your take home pay as much as possible.
The option that is best for you depends on your contract terms, length, your rate and your industry. If you work in the public sector, an umbrella company may be best option if you are subject to IR35 – on the other hand, if you have a higher rate of pay and will be contracting for a longer period of time a limited company is likely the better option.
We can help you weigh the pros and cons of each option and ultimately provide you with either of the above accountancy services. Contact us today to get started.