The one thing that must be taken into account when working as a contractor is that working life can be a bit different to that of a regular employee. One of the biggest differences is that of the working hours as a contractor.
The nature of contracting means that there can be times where the work is overwhelming while sometimes there is very little to do at all. This is only one part of the way of life for a working contractor, with the nature of the work and market demands ever changing.
Working Hours as a Contractor : Typical Working Week
In all honesty, there isn’t one. However, this makes it possible to work around your lifestyle. Contractors have a level of control over the contracts, or number of contracts, that they take on, resulting in a varied schedule and no formal pattern over a working week. A follow-up reason is that while a number of contractors do the majority or all of the work themselves, many others will use sub-contractors to complete certain tasks.
Once a contract agreement is reached, working hours as a contractor will depend on four main attributes. Firstly, it is subject to the terms of the contract; some contracts will have set hours while others can be on completion on a task (also referred to as a fixed price job), while some will be paid by the hour. Secondly, project guidelines can dictate a working week as extra time will need to be put in if timing is tight or the project is large. Those on an hourly rate may welcome this, those on a daily rate may not!
A third point is on the culture of the organisaiton, many employees work longer hours on a frequent basis than they are paid for. Attitudes may vary between companies and individuals but it may be expected of the contractor to pull longer shifts, unasked in relation to working hours as a contractor.
A final point is on client flexibility, as there is a trend towards clients being at ease on a flexibility level with their contractors. ‘Flexi-time’, early finishes and late starts or part time hours or the ability to work from home may be discussed and accepted in relation to working hours as a contractor.
While there has to be compromises, naturally, a contractor will usually get to choose their own timetable.
Working Hours as a Contractor : Time for Administration
Unfortunately, there is no way out of taking time for administration purposes in relation to working hours as a contractor. A limited company contractor will have to take time out of their day in order to undertake and complete accounts and admin duties on top of that days work.
However, having a contractor accountant to take over these tasks is a huge advantage.
Working Hours as a Contractor : Sick Days and Holidays
While any time in between contracts is deemed the ‘holiday period’, these may not necessarily apply when you want or need them. Therefore it is useful to plan holiday time into the coming year. Effectively, you pay your own holiday entitlement; therefore it is also wise to budget for income gaps in the years planning.
Sick days will mean a loss of earnings in regards to working hours as a contractor. Contractors have to organize financial support for their sick time themselves. Insurance cover can be put in place to cover the contractor at his or her own organising.
While there are no guarantees that working hours as a contractor won’t involve long working hours and no promises that there is no paperwork involved, there are possibilities for flexibility to a great extent and a great chance to take home slightly more in terms of earnings.
For more information on Company Formations or Limited Company Formations visit the Euro Accountancy & Finance Services website.
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