Contracting (in the most part) comes with many advantages – increased earnings, greater flexibility and rapid skills/knowledge development are just a few. Over the past decade, contracting and freelancing has grown substantially, more and more people are discovering the advantages of self-employment.
Many skilled and experienced workers are seen to have turned to contracting over the last few years as an alternative to their typical office based employment. Here are 5 top benefits of contracting/freelancing:
Increased Income
This is a major factor for a permanent employee when considering whether to switch to contracting or freelancing. By setting up a limited company, individuals can:
– Negotiate better rates of pay
– Take on multiple projects
– Increase their take home pay
Flexibility
A fixed office location can become mundane for some individuals and is slowly becoming less of a common thing. Contracting allows for greater flexibility – your office can become anywhere you choose – whether it’s in the heart of London or down on the French Riviera. Benefits of flexible locations include:
– Less travel time and more time working/earning
– Contractors with families can use their home as an office to stay nearby
– Changing locations adds variety and development of new skills
Skills & Knowledge
Contractors generally tend to be extremely educated in their particular sector. However, hopping from contract to contract allows contractors to develop their knowledge across other industries and sectors, allowing for a widening of skills, knowledge and experience. This is seen as a massive benefit of contracting as you can:
– Test out a new industry on a short term project
– Network within new sectors
– Learn from your new experiences
– Travel globally with new skills
Choice
Contractors are in essence their own boss, meaning the choices they make are generally the choices that are best for them – often allowing a lot of freedom and flexibility. This freedom allows contractors to make decisions on the location they may want to work, whether it’s close to home or maybe they’d like a change in scenery and decide to work abroad for a few months. In addition to this, they are able to make the choices about who they work with. This is not a decision you can choose when you work in permanent employment, however, as the director of your own Limited Company, you are able to decide this.
Balance
As a contractor, you can balance your time effectively. Nobody wants to be spending the majority of their time working, contracting allows you to manage your time how it suits you. Contractors can have the final decision on how many hours they work, where they choose to work and when they need time off. This allows contractors to:
– Enjoy free time to develop new skills
– Increase both personal time and family time: this could include going to the gym, more time with the children or even finishing early on a Friday!
Here at Gorilla, we provide all-inclusive accountancy services for contractors and freelancers for just £85 + VAT per month. Let us take the headache of compliance and dealing with HMRC away. For more information on exactly how we can help you, give us a call on 0330 024 0406.
