Becoming A Contractor Uk – The Basics Involved In Becoming A Contractor

Employment today here in the UK is definitely a competitive environment. With more applicants per job in many different regions across the country than ever before – it’s definitely time where going down a different path may bring extra rewards.

But doing so is sure to reward those who are known risk takers. With little to lose and high hopes there is nothing stopping someone with a dream and ambition. As such the aspect of contracting may meet such demands and provide an alternative to regular employment.

So contracting?, what exactly are the benefits and why would someone chose this method of employment of regular full-time work. To begin with, the first aspect is the fact that earnings will be much greater than similar full-time jobs. This is because contractors are considered skilled workers that provide flexible working hours.

Also, much similar to looking for regular jobs it’s key to have an up-to-date CV that helps show key experience and previous roles. Bolster this by using other resources such as LinkedIn and Twitter to help not only keep up-to-date regarding potential news but also to co-operate with industry experts that can help provide valuable information regarding interviews and finding work.

The next step is to decide on the payroll solution that will be used to control payment when contracting. The options that exist are umbrella companies that provide payroll solutions and thus creating a hassle free option for contractors who are given employee status and 100% safe from any legislation that can often effect contractors who are using their own limited companies. Limited companies are another option that can be set-up by contractors. These also have benefits but require extra work. For example those using limited companies will have greater percentages of take home pay, but this requires a lot of manual work such as dealing with the HMRC and carrying out many administrative tasks. Both of these options must be given deep thought. Because later down the line changing may also involve implications with contracts and termination fee’s.

Here are a few top tips that help display the benefits of contracting and the requirements to succeed:

– Ensure there’s a market for your skills, the experience to help back this up is also vital.

– Are you a negotiator?, negotiating contracts and working conditions are going to be a regular task therefore ensure you are capable to do this.

– Keeping up-to-date with accounts and tax is vital. The level of records will depend on whether a limited company or umbrella company has been used to deal with pay. But regardless this will be an aspect that has to be controlled.

– Flexible working hours are to be expected. No more 9-5, which also may include gaps between contracts therefore managing your finances throughout this time is crucial.

When conducting your own research and learning more regarding the world of contracting and everything that is involved be sure to check the many online umbrella company calculators to help provide a ball park salary figure.


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