Becoming a contractor gives attractive options compared to being an employee. However, there are certain challenges associated with your own contractor business in terms of starting and running it successfully. In this article, let’s take a quick look at the positives and negatives of working as a contractor in the UK plus tips to overcome those negatives.

Positives of becoming a contractor in the UK:

  • Professional autonomy – you’ve got the freedom to govern and control business affairs independently
  • Be your own boss – decide what work to take on, determine working hours and your vacation period
  • You use your skills and expertise to your own benefit
  • Ability to focus on your core expertise
  • Complete job satisfaction
  • Usually, contractors earn more revenue than what’s possible as an employee

Negatives of becoming a contractor in the UK:

  • No security of a long-term employment contract
  • No backup infrastructure support of an IT team or an HR department to rely upon
  • Must be able to source and secure job for yourself
  • No additional benefits such as incentives, sick pay, pension or bonuses

7  Ideas to negate the negatives of working as a contractor:

All businesses have their own positives and negatives, so do contractors. To help mitigate certain potential risks of becoming a contractor in the UK, here are our 7 tips.

When you start as a contractor, make sure you:

  1. Read thoroughly and understand the terms and conditions of any contract that you take on
  2. Keep an accurate record of your business transactions (…income and expenses)
  3. Stay on top of your bookkeeping and accounting
  4. Protect yourself and your business by taking out an insurance policy that is suitable for your business circumstances
  5. Register with several recruitment agencies to attract more clients
  6. Build a reputation and set realistic goals and expectations
  7. Pay careful attention to IR35 and seek professional advice to stay up to date with the latest legislation

As a Companies House authorized company formation agency, we have helped hundreds of contractors register as a limited company (or as a sole trader) in the UK. In addition to that, we’ve helped them with free advice on the right path to take with our free accountancy consultation. We also help new companies in several areas including accountancy essentials or digital marketing.

Get in touch with us to talk to our expert consultants for free advice on becoming a contractor.

 

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