Working as a contractor can be rewarding both financially and in terms of overall job satisfaction. Many finance professionals choose this route because they enjoy the variety that comes with working for different organisations, meeting a wide range of people and continuously developing their skill set. Contracting may also suit individuals who require breaks in their careers, for example to travel overseas.
In recent years the labour market has become far more flexible. Given the current economic climate, individuals who may not have thought about contracting previously will increase their available job options by considering this method of working in a tighter job market.With potential increasing redundancies, more individuals may be in a position to consider flexible working opportunities. In the current environment, some finance teams do not have the required approval to hire permanent staff but are able to offer contract opportunities in areas where there may not necessarily have previously been roles. The benefit to both parties is that there is an element of 'try before you buy' when contracting and many contract opportunities eventually turn into permanent positions.
More experienced 'career contractors' with turnaround experience are also in higher demand in the current market, particularly those who have experience of working in distressed businesses.
If you wish to contract, it is important to have control of your administration. For example, you will need someone to do all your paperwork, fill out forms, talk to the relevant authorities (HMRC) and ensure you're paid as quickly as the process will allow. Also, in order to work legitimately you must be employed by a limited company that is registered for PAYE with HM Revenue and Customs. Many contractors choose to register with an 'employment management company', also known as an 'umbrella company'.
The government has introduced new legislation over the past few years to ensure that freelance contractors are paying their share of tax and national insurance. This has affected contractors and has limited the ways in which you can work as a freelance contractor.
If you've chosen a compliant umbrella company to work for, this shouldn't be a problem. Consult with the umbrella company provider and take further legal advice if necessary. Also visit www.umbrellasupermarket.com, a website ranking the hundreds of companies on the market, compiled by thousands of contractors surveyed across the UK.
