1. The benefits of a limited company
Have you considered using a limited company? There are numerous advantages but particularly you have the ability to increase your take home pay. Also, this road opens the door for better tax planning opportunities which can reduce the overall tax burden.
2. Pros and cons of using an Umbrella company
Using an umbrella company can be very attractive as it takes out all the hassle of having to do the laborious administration that you would have to do with a limited company. Also, you have the option to pick it up or leave it as you wish. However, many accountants charge less that umbrella companies.
3. Flexibility is a must
Understandably you may find yourself in times of feast or times of famine in terms of the work available to you. However, keeping yourself flexible in terms of what organisations you’re willing to work for, how far you’re willing to travel will undoubtedly open up your options and help to give you some kind of consistency of income. Whilst you’re probably an expert in your field, would it hurt to broaden your skillset or the type of work you’re willing to do? Definitely not. This will in no way dilute your expertise or niche, but rather give you more options as regards contracts.
4. You need insurance
This is one not to be neglected. If you fail to get the correct insurance, some clients will not hire you. As well as protecting your client, contractor professional indemnity insurance protects you so is absolutely an essential. Overlooking to get the correct insurance could land you with a very costly bill in the case of any errors or negligence.
5. Reality
Are you still relevant? Is your skill set being sought out? You may have spent many years honing your skills but things may have changed since the beginning of your journey. It may be quite a rude awakening to find that the need for your area of expertise is on the decline, so why not get ahead and check the market out yourself. Be ready and available to adapt accordingly. You’re running a business after all.
Interested in finding out how you can reach your maximum take home pay as a contractor? Have a look here for more details, or give us a call on 02084 446 6112 or just drop our resident tax expert a line at pratik.jani@tenforwardfinance.co.uk
