Benefits of contracting
There are many benefits to contracting, these include:
- Experience different sectors
- Attain new skills
- Work in different environments
- Contractors are often paid a premium rate
- Flexibility to work when you want to
- Control over your career – you choose which projects you wish to work on
Contract Options
There are two primary routes to contracting supported by Jonathan Lee. You can choose to set up your own Limited Company, in essence starting your own business and becoming a company director, or you can choose to work through an Umbrella Company who will become responsible for deducting your tax and national insurance amongst other things.
Own Limited Company
Setting up your own limited company means that you will be responsible for running your own business, and will be required to:
- Operate a business bank account
- Arrange insurances [find out more here]
- Ensure tax and NI contributions are made
- You may also become VAT registered
This is generally the best option for professionals who are intending to contract on a long-term basis and who are genuinely self-employed.
Umbrella Company
Many of our contractors choose to work through an Umbrella company rather than setting up their own Limited Company. There are a number of benefits available to you when working this way, including:
- Tax and NI are deducted on your behalf
- Some business related expenses can be recovered
- Providing advice and support on legislation and other rules
We work closely with a number of Accountancy and Umbrella providers and operate a Preferred Supplier List (PSL) to ensure we protect our contractors. Our Payroll, welfare and contractor liaison departments review this list annually, and are selected using criteria such as:
- Scope of services offered
- Accreditations, Compliance and Legislation
- Cost to our contractors, and financial stability
- Our experience of working with them over the previous year
If you are considering contracting with us, our experienced Contract Consultants can talk you through the options available to you. Call us on 01384 397555.
