A lucrative market awaits people pursuing a profession as a contractor. Individuals with the suitable specialist skills can find work in a number of organisations and luxuriate in plenty of advantages.
On this blog, you’ll learn all in regards to the world of contracting. We discuss all the things from the advantages of being a contractor to the abilities you’ll need and the best way to take your first steps.
What are the advantages of working as a contractor?
In keeping with the respondents to a recent Hays poll on LinkedIn, the predominant profit is attending to be your personal boss. As an independent contractor, you’ll be able to select where you’re employed, while you work and who you’re employed for.
As a contractor, you’ll be able to set your personal rates. For those who offer your services on an hourly basis, this might lead to the next annual income, which was rated because the second-best perk within the recent poll.
What steps should you’re taking to grow to be a contractor?
1. Be certain that working as an independent contractor is true for you
Becoming a contractor has many pros and cons, so it’s essential to be sure the move can be best for you. Try looking for out skilled advice before making your decision.
Are you in a position to keep a calendar? Are you able to cope with skilled indemnity insurance requirements? Do you recognize the most effective solution to pay yourself? Are you proactive find projects?
James Milligan, Global Head of Technology Solutions, has compiled an inventory of inquiries to ask yourself here.
2. Prepare to maneuver on out of your full-time job
Working as a contractor alongside a full-time role is a brilliant way of build up a portfolio, but with the security net of a everlasting position. Check that your contract along with your existing employer allows for this.
You have to be able to move on out of your existing position. The world of contract work is fast paced, so you ought to be ready for brand new opportunities.
3. Make clear your tax position along with your employers
Within the UK, contractors generally follow a set of tax rules often known as IR35. IR35 tax rules help to be sure that firms can’t exploit everlasting employees by employing them as contractors. Understanding IR35 tax rules is significant. HMRC repeatedly investigates firms to find out whether or not they’re in breach of those regulations.
Similar rules apply in countries like Germany. The German government introduced a process for assessing employee status and ensuring that self-employed contractors aren’t everlasting employees in disguise. Learn more in regards to the AUG labour licensing system in Germany.
For staff within the US, there are additional processes for clarifying your employment status. For those who are unsure whether you might be an independent contractor or an worker, either you or the corporate can complete Form SS-8. This declaration allows the IRS to review your circumstances and determine your status. If an employer within the US incorrectly classifies an worker, the corporate could also be responsible for employment taxes.
Be certain that to make clear your contract status in step with your local laws and regulations.
4. Consider how you desire to arrange as a contractor
As a contractor within the UK, you’ll be able to set yourself up as an worker of an umbrella company or start your personal limited company. Selecting an umbrella company might be straightforward and reduce admin. Nonetheless, starting a limited company offers tax benefits and means that you can claim for more expenses.
Similarly, within the US, the most well-liked options are to operate a sole proprietorship or a limited company. Like umbrella firms within the UK, a sole proprietorship is the only option, however the predominant drawback is you’re left personally and financially liable.
5. Find an accountant and arrange your banking
Using an accountant may cost money, but they’ll keep your accounts so as and avoid any complications along with your tax bill. Accountants are especially useful if you’ve gotten arrange a limited company, each for tax purposes and to be sure you’ve gotten the suitable kind of checking account.
6. Create your contractor portfolio and online presence
A Hays poll revealed that 52% of the ten,045 respondents consider the flexibility to construct and maintain relationships is an important trait for a contractor.
Are you lively on LinkedIn and cozy in reaching out to your network? Having a robust online profile and portfolio could make it easier to attach with recent clients. Start with our personal branding checklist:
- Be certain that your LinkedIn profile is complete: Select a high-quality and skilled profile picture, fully optimise your headline and create a summary that sets you apart.
- Remember to point out your personality: Use a friendly and authentic tone, add personal facts or hobbies and share your vision and values.
- Have an lively online presence: Post relevant content, engage with other users, join groups or communities and reach out to potential contacts to make your account more visible.
- Consider creating an internet site or blog: Try purchasing your personal name as a site. Add examples of labor, a transient bio, a contact email address and links to the remainder of your online presence, similar to LinkedIn or Facebook.
7. Start working as a contractor and search out recent contract roles
As a contractor you should be proactive find recent contacts and opportunities. Marc Burrage, Managing Director for Hays Asia, has written in regards to the search process and the best way to stay positive.
Can I learn more from recruitment agencies like Hays?
The expert team at Hays can offer invaluable advice on becoming a contractor and the best way to establish your profession. Read more of our blogs on this topic and reach out to us today.
