This article will address the common worries newbie contractors have when joining the flexible workforce;
1.Wages
Some believe that the wages paid to contractors are not all that different from those in permanent employment. This however tends to be a misconception as statistics show that highly skilled temporary workers are on average likely to get twice or even three times as much as an equivalent permanent employee.
2.Type of work
The beauty of contracting is that you can pick and choose the type of work you wish to do. There is a high degree of flexibility when you start working as a contractor which allows you to manage your working and personal lives as you wish.
3.Receiving your earnings
There are two main options when receiving your earnings:
A PAYE Umbrella Company Under the umbrella solution, all you have to do is submit your timesheet and expenses to your umbrella, allowing them to invoice your agency/client. As soon they receive your money, they should process your payment on the same day, ensuring you receive your earnings in the quickest and most tax efficient manner. See the Danbro
Umbrella Service
Setting up a Limited Company Operating through your own Limited Company is the most tax efficient way of working. Specialists Contractor accountants like Danbro can provide accounting solutions tailored to your individual needs. As a client of Danbro, nearly all the work and certainly all the worry of running a Limited Company will be borne by them. See the Danbro
Limited Company Accountant
4.Mortgages
Many contractors may think they need to be in permanent employment in order to be eligible for a mortgage. The reality is contractors can have access to a high street mortgage just the same as permanent employees. In fact many companies are now offering specialised financial services specifically aimed at contractors. More on
Contractor Mortgage
5.Liability
It is true that you are liable for any errors caused by you in your work; however by purchasing Professional Indemnity Insurance you will be fully covered in the event of if anything was to go wrong. P.I. Insurance will meet the cost of defending claims and any damages payable. Many Umbrella Companies such as Danbro, also include this insurance as part of their umbrella service for free.
I hope the above has gone some way to putting your worries at rest. The freedom of contracting, picking and choosing where you work and also the higher wage rates will make you wish you started contracting earlier once you have made that initial leap.
For further details, please contact Danbro
Umbrella Company on: 01253 600141,
General Enquiries: 01253 600140,
London Office: 020 7836 8400 or
E-Mail: enquiries@danbro.co.uk
