"I would certainly recommend it. There is a little bit more work involved, it's not like getting a pay cheque at the end of every month and going out and spending it all. It does take more discipline to stay on top of things. While this means it may not be suited to everyone, there can be major rewards for those who are prepared to give it their full attention."
1. Why did you decide to leave your permanent role to become a contractor?
I made the switch because the opportunity presented itself. I was planning on buying a house, so the promise of a decent wage attracted me at the time. I wanted the chance to make more money than I otherwise would be able to as a permanent employee.
2. What are the main benefits of working as a limited company contractor?
Financially it's more rewarding, it certainly gives you greater flexibility in that regard. If I have an expense, I can pay it myself, or I can give myself additional dividends throughout the year. It's pretty easy. Generally, most of the complicated stuff is managed by PayStream and I very rarely have to get involved.
3. Are there any challenges that come with contracting?
IR35 is a hot topic of discussion. At the moment, it's not something I'm particularly concerned about though, but at the same time, some of the clients I work with are public sector. I’ll have to see how it pans out.
4. How have PayStream helped you over the last five years?
It's definitely important to have an accountant like PayStream that you can turn to if you have any questions. It certainly makes understanding the tax side of things a lot easier, as well as expenses and things like that. Working with PayStream means it doesn’t take a lot of thinking about.
5. Would you encourage others to take up contracting?
I would certainly recommend it. There is a little bit more work involved, it's not like getting a pay cheque at the end of every month and going out and spending it all. It does take more discipline to stay on top of things. While this means it may not be suited to everyone, there can be major rewards for those who are prepared to give it their full attention.
For more of David’s story, you can read his case study here. We’re glad to have him as a happy PayStream client, and we look forward to working further with him in the future to ensure he continues to enjoy being his own boss and enjoying the benefits of being a contractor.
