By Chris Jones – Regional Sales Manager
It’s safe to say that over the past couple of years the legislative spotlight has been on the self-employed, with all aspects of a contractor’s role under the HMRC microscope. Understandably in recent months the focus has been on “what are we losing as contractors?” rather than “what are the advantages?”
However, the contracting sector is increasing year on year. With data from the ONS showing that self-employment rose from 3.8 million to 4.6 million between 2008 and 2015, working for yourself remains an attractive option for many. Here we’ll look at the variety of benefits available to those joining the contracting club:
Freedom & Flexibility
- As a contractor, you are in effect your own boss, especially as a freelancer with your own limited company, where the company you work for becomes your client. Therefore you have far more independence in the way you work, including the freedom to choose when you work and for how long.
- As a client of an Employment Business (Umbrella) you are able to have the freedom and flexibility of moving from assignment to assignment. This means you can develop your career by choosing assignments to suit your personal circumstances, while maintaining the benefits of employment. Benefits of our Employment Business solution include: statutory payments (SSP, SMP, SPP), personal accident insurance, pension scheme, free review with Danbro Financial Services, and Bupa Cashplan.
Skills & Development
- Working on a variety of contracts in different sectors and for different companies will help you to build niche skills and gain valuable experience, as well as enabling you to get an insight into the different cultures, processes and operations of companies.
- As a freelancer you can build up an extensive list of reference contacts which will help add value to your CV for the future.
- Contracting through your own limited company can give you significant tax-planning opportunities, which can reduce your overall tax burden and increase your take home pay. And it isn’t as complicated or time-consuming as you might think, especially with the Danbro App and FreeAgent accounting software, which you have access to with all of our Limited Company solutions.
- Depending on your circumstances, you can offset your allowable business expenses against your income to further reduce your tax bill.
One thing is certain; the UK economy has and always will rely on the flexibility and skills that a contingent workforce provide. In fact, the need for flexible workers is increasing, with many key infrastructure projects demonstrating continued growth in key sectors such as Automotive and Rail, and more investment in infrastructure promised in the Autumn Statement.
This, along with the power to dictate your earning potential, when and how you work, and ultimately take control of your career, makes becoming a contractor a very attractive proposition indeed.
Danbro are a compliant provider of accountancy solutions for contractors, freelancers and small to medium businesses. We offer tailored packages depending on your circumstances, including accountancy, employment business (umbrella) and payroll solutions.