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If you’re starting out as a Contractor or Freelancer, there are a handful of unexpected costs that could easily change your financial plans for the month, so let’s get you prepared.

You may have saved towards a war chest to cover any bumps in relation to financial planning throughout the first few months of your journey as a flexible worker, but what about the hidden costs?

But first, a war chest is typically a reserve pot of money for rainy days, gaps in employment, or financial cover for breaks due to holidays, sickness or maternity/paternity.

If you haven’t already, read ‘Part 1: Hidden costs Contractors should know about’.

We round-up the remaining hidden costs you should think about:

Payment Delays

Delays in payment – It’s an unavoidable incident but FreeAgent makes it easy to flag missed payments and overdue invoices.

FreeAgent is a provider of industry standard, bookkeeping software, as delivered by Gorilla Accounting. FreeAgent allows you to set up automatic invoice emails to send reminders to your clients that invoices are due, and overdue for payment.


Parents evenings, medical appointments and unexpected breaks; these are occasions which are typically unplanned but can work out as hidden costs.

As a Contractor, time is money because you typically charge by the hour.

Administration Fees

If you’re purchasing equipment for your business, there may be an administration cost which is placed on top of the total billing price. It’s worth comparing different websites to minimise extra costs such as admin fees.

As a Contractor, it’s also worth keeping an eye out on legislative changes announced in the annual budget as measures suggested within this could influence your forecasted costs.

Gorilla Accounting is a specialist accountancy firm exclusively for Contractors and Freelancers operating through a Limited Company or Umbrella Solution.

If you would like more information, get in touch with our New Business Team by calling 0330 024 0406 or email