Demand for contractors is increasing; according to the recent JobsOutlook report published by the Recruitment and Employment Confederation (REC). This study found that eight out of ten employers (79 per cent) are using agency workers to provide short-term access to strategic skills. Indeed 43 per plan to increase their number of temp staff in the next three months.
REC CEO Kevin Green said: “It’s clear that skills shortages are affecting the way in which employers use agency workers and increasing numbers are now relying on temporary staff to provide short-term access to strategic skills. This is a trend that is likely to continue as it becomes increasingly difficult to source the skilled permanent staff that businesses need to grow.
Now is a great time to start contracting!
Here are some of the perks (if need any more convincing):
• Freedom – Everything comes down to you. No more office politics, 9-5 drudgery, early morning commute. You are your own boss and have the freedom to choose the type of work to do, when and where to work and when to take holiday.
• Variety – As a contractor you can develop an extensive and diverse CV and experiences working for a large number of different companies and contracts. Bosting your profile and making yourself more desirable for future positions and projects.
• Limited Company Benefits – You alone reap the rewards and profits of your hard work, no more third party employers or group shareholders benefiting from your success.
• Money – Increase the amount of money that you earn. Contractors on the whole earn more than an equivalent permanent employee and with professional tax advice contractors can minimise their tax liability by using childcare vouchers and pensions. Even make the VAT system work for you.
• Business Expenses – There is a large range of business expenses that you can claim when running your own business that are not available to company employees that can offset your expenses in a tax efficient manner to maximize your profit.
Benefits to your Clients:
Working as a contractor is not only beneficial for you, but also your potential employer:
• Contractors are more flexible in regard to working hours than permanent employees
• Contractors are often a source for skills which are lacking in the in-house team.
• Contractors can save the business money – as unlike permanent staff the company is not responsible for sick pay, holiday pay, redundancy pay and employer’s National insurance.
However, with this freedom comes increased personal responsibilities which could include the following (this is where Sidekick can help):
• Submitting your personal tax returns
• Corporation Tax, VAT and PAYE returns
• Registering your business and filing annual accounts
• Planning ahead for holidays / sickness