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Whatever industry you are in, there are numerous benefits of working as a contractor and being your own boss! Many of these advantages boil down to pay, flexibility, financial freedom and career satisfaction.
If you are considering becoming a contractor or setting up your own business, take a look at the most popular reasons people take this route in their working career.
FlexibilityAs a contractor, you are in essence, your own boss. This can be extremely rewarding and enjoyable if you’re looking for a more flexible way to working. A contractor has much more flexibility over the hours they work, more than a permanent employee would have, choosing how long you want to work with a client for and where you choose to work from. If a job isn’t a great match, there is greater freedom to be able to change contracts when you see fit. When it comes to working conditions, being your own boss can give you a whole new lease of life! You’ll be able to make decisions and have a say in how contracts are pieced together.
Financial benefitsAs a contractor you have more flexibility over payment terms and rates that you negotiate with clients. You may even be able to charge more than a permanent employee would receive for the same job. Contractors are paid a higher rate due to the specialist skill set they possess and the fact that they can come in just to fulfil a particular task. If you are a contractor that performs a high demand skill, you can set your prices accordingly. As a contractor you can also charge for every hour you work, rather than a 9-5 general pay for example. You could also benefit from this if additional work or overtime is offered. Contracting through a limited company is usually the most tax efficient way to work and doesn’t have to be complicated! You can reduce your overall tax burden and increase your take-home pay. And on top of that you can offset your business expenses against your income to further reduce your tax bill. Ask us for more details!
Career growthWorking as a contractor gives you the opportunity to try before you invest. It gives you wider flexibility to test out the industry, to find the areas that you enjoy and are good at, and when you’re sure of which direction you want to head in, you can invest in the necessary to grow your skills and experience. It can be a great eye-opener to industry culture, sector specifics, operations and processes. Once you’ve established what you love to do, you can focus on your career and grow an established business based on these passions. When you have a love for something you get to know it inside out and upside down - you will become known for your skill set that you can offer a client. Use this as your selling point to gain more business and further your career in the direction that you want it go. As a limited company contractor, you are in control of your business, or your career and the clients that you work with. As you grow your skills and experience, you may even find that you become a sought-after contractor, which will mean that you won’t even have the hassle of finding new business, it will come to you!When you work for various organisations and are exposed to different environments, utilise this as much as possible. Learn from all your experiences, build relationships with clients (which you can use later for referrals and recommendations) and become an industry expert. You will have the satisfaction of doing what you love for people who need your services.
You have variety!Working as a contractor you can choose variety. If you’re the type of person who doesn’t like to be in the same place or see the same people all the time - it’s time to mix things up a little and make your work interesting! You may work side by side with employees of the company that you are doing work for, but they are not your supervisors, they are your clients. Relationships change when you are working this way, as a contractor you are treated differently than you would be as an employee and this can mean a greater sense of achievement or self-worth for you personally which can help you to work to a different standard. If you are your own boss, you can choose when to take time off! If you are earning slightly more and decide to take a break in between contractors, that is your privilege. If you are earning more, you may want to work less and be at the same position as you were as an employee.
It’s surprising the difference that working as a contractor can make to your lifestyle. Many limited company contractors find that they have a better work/life balance and have a deeper sense of independence and career satisfaction as well as being happier and more in control of their lives.If you’re thinking about starting as a contractor or even setting up as a limited company contractor, we’d value the opportunity to chat with you to discuss your options. Get in touch today!