4 Signs you're ready to make the move into the world of contracting

Friday 4th September, 2015
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Contractor Info

Making the transition from permanent to temporary work can be an intimidating prospect, however with its numerous advantages and benefits, you'll soon see why contracting might be perfect for you.

But how do you know if you're ready to become a contractor? Here are our top 4 signs...

You crave freedom and flexibility

As an umbrella or limited company contractor, you are able to choose which assignments you accept or reject and as a limited company contractor you can decide when, where and how you'll work including, the number or hours you work and even the tools and equipment you use on the job.

You're highly skilled or experienced

Your numerous years as a permanent employee give you the advantage of building up a wealth of experience and a strong set of skills. Being highly skilled in the contracting sector gives you an advantage, as an increasing number of businesses are turning to contractors to fill talent gaps by using their highly sought after skills set for a set period of time.

You want to earn more

It is often the case that contractors earn higher rates of pay than their permanent equivalent. This is because clients will pay more for short term access to the key skills that you as a contractor have to offer.

As a contractor, you also have the ability to offset allowable business expenses against tax which can in turn increase your overall take home pay. As a limited company contractor, you will also have the ability to draw some of your funds as a dividend rather than being paid a full salary, so your overall tax burden is reduced, which is why it is usually the most tax efficient way to work.

You enjoy working with a variety of people

Through your working life, as a contractor, you're likely to meet an array of clients and in some cases work on many different sites, unlike that of a permanent employee whose working life can be very monotonous.

If any of these points listed above describe you then you may ready to make the move from permanent to contract work enjoying the wealth of benefits that come from working in this way. If you have any questions regarding whether working as an umbrella company contractor or limited company contractor would be the best fit for your circumstances please get in touch on 0800 197 6516 or 0161 929 6000 (option 1) or via info@paystream.co.uk



As a contractor, you also have the ability to offset allowable business expenses against tax which can in turn increase your overall take home pay. As a limited company contractor, you will also have the ability to draw some of your funds as a dividend rather than being paid a full salary, so your overall tax burden is reduced, which is why it is usually the most tax efficient way to work.