No matter what industry or employment sector you work in, there are various benefits and numerous advantages that can be capitalised and gained working as a freelance contractor. To simplify, the main benefits are down to increased revenue, more money, increased and customisable flexibility, enhanced freedom, development of further skills and growth of your reputation, especially if you plan on falling back into permanent employment at a later point.
Some say that a 6 month or 12 month contract is as much job security as someone can achieve in this day and age, therefore working as a freelance contractor provides more job security than a new position within a company; large or small.
Furthermore, with employee benefits being reduced, final salary pensions shrinking and salaries taking major slashing’s, there has never been a better time to become your own boss as a freelance contractor, and there are many reasons why this is a good move.
Freelance Contractor: Financial Benefits
As you would expect, the first thing hoped for it financial advantages and more money in your pocket! Luckily, the financial benefits of being a freelance contractor are plentiful and compelling.
To start with, the average rate for a contractor can be easily double or triple that of a standard employee. Contractors are typically paid very highly in regards to their flexibility and skills set but also because the time employed can be short-term. Rates of pay can be increased further if your particular skills are sought after and/or rare.
This is also a highly tax efficient way of working with hourly rates and high overtime pay.
Should you work through a limited company then numerous tax planning methods will be available, which can have the effect of reducing your overall tax bill and accumulative your pay that you can take home. Forming a limited company is easy; taking as little as 5 minutes.
A further benefit is that you can offset business expenses against income in a plan to further reduce the amount of tax on your tax bill.
Freelance Contractor: Flexibility Benefits
As a freelance contractor, you are your own boss. This is obviously enjoyable and rewarding to your personal degree. Alongside being independent, you can chose when to work and where to work for as long a time period as you prefer and changing contract is often much easier than actually changing jobs.
When it comes to holiday time, contractors can take as long or short a holiday time, as they prefer. Permanent employees don’t usually get paid for any entitled holidays that aren’t used throughout the year – as a contractor you will receive payment for holidays that are unused.
The company that you would be working for is not actually your employer; they are in fact your client. This creates a completely different relationship. Freelance contractor roles also allow you a large say in your working conditions and your payment terms; almost every aspect is negotiable.
Furthermore, you can build your career in the way that suits you best surrounding personal circumstances at any given time.
Freelance Contractor: Skills Development Benefits
Taking the route of being a freelance contractor can send you all over the world to work for various different companies in different contract roles, building a broad range of skills from your experience.
Freelance contractors are given access to different organisations in different cultures; therefore gain an insight into various cultures, structures, processes and operations. This widens your skills set and enhances the experience range you can receive. This will also result in a shining CV and a large number of useful industrial contacts.
After your skills have started to grow and you become successful, you will find that clients will come looking for your skill – you probably won’t have to keep applying for positions. Gaining connections you will end up being contacted directly by other contractors looking for assistance also. Diplomatic charm is often developed after working under different management structures along with developing knowledge in diverse numbers of products and/or services.
Freelance Contractor: General Advantages and Benefits
The majority of contractors leaving permanent employment in order to take up freelance contracting generally earn more than if they continued to work for an employer in a permanent contract. Once having been to work abroad and having gathered further skills, you will appear more attractive to employers and your wage will be increased accordingly.
As a contractor, you will be seen and viewed differently. Further respect will be added and without any direct ties to the company you are working for, managers will not see you as a risk and issues with other workers as human beings will be lowered.
Should this not work out or you find it isn’t for you, you can always revert back to permanent employment again. But remember, with the chance at a more exciting lifestyle and interesting work tasks and contracts, what would you have lost for giving it a try?
For more information on Contractor Accountants or Contractor Expenses visit the Euro Accountancy & Finance Services website.
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