Employment to Contracting
Making the change from a permanent employee to become a contractor is a move that many skilled and experienced workers take. Better earnings, career development and greater flexibility are just a few of the reasons why so many employees are keen to look into contracting.
Working as a contractor is a rewarding experience, with many opportunities to grow and develop in your field of expertise. Most contractors make the move from employee to contractor because contracting offers an exciting new career choice and the chance to enhance your professional development.
There are different payroll options that you can choose from when working as a contractor. The options include setting up and operating a limited company or working through a PAYE operation such as an umbrella company. However, you are not limited by choosing one or the other, some contractors choose to use an umbrella company first and then when they are confident with the contracting process they then set up and run their own limited company. Of course, both options are suited to different individual circumstances.
Benefits of working as a contractor
- Increased earnings:
Higher income and the ability to negotiate rates of pay with clients is a reason that many contractors cite for making the move from permanent employment to freelancing or contracting. Similarly, as you are not an employee, you will have the ability to take on multiple projects as you see fit.
- Skill development within different industries:
As a contractor, you will be brought in to provide your skills and expertise to the client. The variety that comes with working in contract roles will increase your skill set, industry knowledge and exposure to working within different environments.
You have the opportunity to negotiate with your clients in terms of working hours and workplace location. This may mean that you can work from a remote office or have a selective choice over the client’s location.
Being an independent professional means that you are able to choose and set up your own payroll solutions. You can decide if you would like to be a contractor with a limited company or work through an umbrella company.
- Limited Company
- High net return
- Control and flexibility over your finances
- Limited liability
- Umbrella Company
- Quick set-up
- Low fees
- No IR35 risk
How we can help you if going contracting:
As specialist contractor accountants, we are experienced in advising contractors on the best payroll solutions for their individual requirements. Because we advise contractors individually, we are able to tailor our advice and services to their individual circumstances.
You will need to know what is involved and how to make the necessary adjustments in order to successfully work as a contractor. Our service is specialised within the contracting industry. We understand the various demands that you will feel as a first time contractor and will be able to support you regardless of the industry that you work in.
There is a financial difference between using an umbrella company and a limited company. Whilst using an umbrella company is a quick and easy set up, most contractors prefer to operate under a limited company to maximise their take home pay. Being a contractor with a limited company comes with extra paperwork and administration, but by using a specialist contractor accountant those hassles are minimised.
- Become legally tax efficient
- No initial set-up costs
- No minimum tie in contract on any of our services
- Unlimited free in-house advice
- Full admin support
- A bespoke service tailored to YOUR requirements
- Provide instant access to your take home pay figure by SMS and email
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