Contracting From a Permanent Role – The Good and the Bad
So you’re Flipping to contracting from a permanent role – What’s good and what’s bad about contracting?
As former contractors, we at Accounting Pro know that becoming a contractor is exciting but also challenging. Our professional team can provide you with simple, effective solutions to help you become a successful contractor. What option you take depends on your personal circumstances and we can help you with either a PAYE Umbrella or Personal Limited Company.
So, what’s good about contracting?
Greater flexibility in your working life
You get to decide when and how long you want to work. If you are dissatisfied with a particular position, you can look for another one with more flexibility than you have in a permanent job. You can also plan to take more time off between contracts if you wish. Accounting Pro will advise you on how to plan and save for these situations.
Make more money
Contractors are paid for their skills and ability to “hit the ground running!” Because of this, they get paid a premium and are in a stronger position to negotiate higher rates. They can also write off expenses with flexible pension arrangements to reduce their taxes, all of which contributes to their net pay. Having a good accounting/payroll service helps too, and Accounting Pro can assist you every step of the way.
Less office politics / More personal control
Contractors don’t have to get involved in office, in-house politics. You are exempt from “presentism”– that is staying extra time to impress your boss. You are your own boss; when your work for the day is done you leave.
So, what’s bad about contracting?
No company benefits
When you are a permanent employee, you have sick pay, pension entitlements, and private healthcare. Contractors don’t get these benefits and need to sort them out themselves. Accounting Pro will help you with this; we have expert partners to resolve these issues for you.
The bother that comes with contracting
You are also responsible for your taxes, accounting and administrative plans, which can be challenging and time-consuming. Nevertheless, we are familiar with these items and can take care of them for you. You’ll be free from those annoying distractions and able to focus on contracting.
Reduced job safety
As former contractors, we know a downside of contracting is that you will only get (on average) contracts for 6-months at a time. You may then be temporarily out of work until you obtain another contract. Accounting Pro will help you save in case of fallow periods. We can also advise you on techniques to obtain new contracts more quickly.
Accounting Pro is Ireland’s premier contractor accounting service. We are here to help, the busy contractor and company, with all your accounting and payroll needs. We are both an umbrella company and umbrella corporation and we can create your limited company. We are experts in contractor pensions, contractor health insurance, illness and sick benefit for the self employed and contractor expenses. To learn more about what we do please review https://www.accounting-pro.ie/ and contact us by email: firstname.lastname@example.org or phone us 01 6933370. For the UK see Accounting-Pro UK. “Contracting From a Permanent Role – The Good and the Bad” is an article written by Accounting-Pro Ireland for the benefit of everyone. Feel free to share it but please give attribution on a CC BY-SA license.