Could contract work be for you?

Here is my fourth Graduate blog for x4 recruitment

Could contract work be for you?

If you’re considering leaving your current role in search of greater flexibility, contract work could well be worth considering as an alternative to part-time work. Not only is the flexibility greater, the pay is often higher and there is likely to be more opportunity for you to make use of your education and experience and progress within your chosen industry. Contract work can also be a great interim option.

There are different forms of contract work, and each of these come with their own set of advantages and disadvantages. Working as a contractor for an umbrella company can be ideal if you’re new to contracting and want both the flexibility of the contractor lifestyle and some security. It’s possible to work for such companies on short-term assignments from one day to six months. This could be a good way to ‘test the water’ prior to making any large commitments. You will pay Pay As You Earn (PAYE) tax and National Insurance on your earnings.

More seasoned contractors often opt to set-up Limited companies due to the additional flexibility and tax benefits they afford. If you’re comfortable being your own boss and happy to manage your own finances, setting aside money to pay your tax, this could be for you. Working as a sole trader will also allow you to be your own boss, but there are far fewer tax benefits and it can be considerably riskier.

If you’re new to contracting, working through an agency like X4 could also be the best option. We handle the contract negotiation and administration with the client company, saving you the hassle. We also deal with all payment issues, including rate and terms, so you don’t need to get involved in any chasing for late payment. Plus, there’s no need to worry about IR35 etc. We will ensure all contracts reflect the IR35-friendly working practices our contractors engage in. We are familiar with all the ins and outs of current legislation and quick to adapt to any changes. Being able to take a ‘hands-off’ approach appeals to many of our contractors.

If you’d like to speak to us about the realities of working as a contractor, get in touch. We’re always happy to chat.