Benefits of Becoming a Contractor

As a contractor you are able to take control and ownership of your career; shaping and guiding it in the way that you want, and making sure that the direction of travel is the one that you want to be heading in.

Throughout the years we have surveyed our clients asking them to share their thoughts on the contractor market. Over 30% have shared their views on why they chose to go contracting. Our latest survey can be found here for full results: Life as a contractor survey results.

Top comment: “Master of my own destiny and working lots of different diverse companies”

Here are some of the other reasons why so many are moving over to the world of contracting:

Financial reasons

When all is said and done, the financial benefits are often a big driver behind the decision to become a contractor. For example:

• Daily rates. Contractors can often command a higher rate of pay than their permanent counterparts.
• Limited company tax benefits. As an independent contractor, you have the option of working through your own limited company, which brings with it many tax efficiencies and a better return on your hard work.

Lifestyle

Over 75% of our contractor clients stated ‘greater flexibility’ as the key reason they chose to go contracting. Lifestyle changes are fast becoming the number one reason so many choose to be their own boss, this means:

• Less office politics. Being bought in as a ‘service provider’ you are often not subjected so heavily to office politics and hierarchical struggles; allowing you to spend your day getting on with the task in hand.
• Better work/life balance. Whether you want to work every waking hour for excellent returns, or work around other important commitments in your life, the choice is yours; by being your own boss, you can choose the work that suits you. In our latest survey 65% of our clients chose having a better work/life balance as one of the main reasons they made the switch over to contracting from being a permanent employee.
• Greater flexibility. As a contractor, you choose what projects you take on. You as a company can then choose how long it will take to complete the project, meaning you have greater flexibility on choosing your working days. Working multiple contracts also means on down time, you can choose when to take time off, so last minute holidays can become more frequent.

Career

Changing contracts and starting new projects relatively frequently is expected, in contrast to the expectation to stay in a permanent role for some time. Contracting is therefore a great way to build up experience very quickly for you and your company. For example:

• Variety of sectors and skill set development. You can gain experience in a number of different industries before deciding where your preferences lie. You can choose what skills you feel would benefit further training for your niche or not.
• Future work with the end client. Once you start contracting it will often lead to further opportunities as you become absorbed into networking opportunities with clients, suppliers and agencies.
• Greater skill set. Contracting can be great to develop your self-esteem and confidence as you can see yourself quickly adapting between one project and another.
• Less ‘cabin fever’. For people who enjoy constant challenges and change, contracting can bring the necessary diversity and stimulation.

If you are considering the contracting life style, why not speak to one of our qualified accountants? Simply complete the request a call back form, or why not book a FREE no obligation face to face meeting at a location suitable to you. You can discuss everything about:

• Setting up a limited company
• Limited company expenses
• IR35 – what it is and how it works

Want to stay up to date with the latest contractor news in the contracting market? Visit ITContracting.com for a suite of guides and information.