Since the incorporation of Jonathan Lee Contracts Limited in 1994, the contractor landscape has changed dramatically in some ways and has remained fundamentally the same in others.
The demand in the UK and Europe for a flexible workforce continues to increase and the growth in contracting roles is now outpacing that seen in the permanent jobs category. For many, this has led to the conclusion that contracting is being embraced by hirers as ‘the new norm’.
Guest Blog By Chris Jones, Regional Sales Manager, Danbro
Whilst the hirer is not saddled with the many legal and financial risks and responsibilities associated with employing someone on a permanent basis, the contractor enjoys the freedom, flexibility and variety offered by the contracting lifestyle.
In a guest blog entry, we have invited Danbro, our umbrella partners and experts in accountancy solutions for contractors, to discuss the advantages of becoming a contractor.
The contracting sector is increasing in size year on year. With data from the ONS showing that self-employment rose from 3.8 million to 4.6 million between 2008 and 2015, working for yourself remains an attractive option for many and there are a variety of benefits available to those joining the contracting club:
FREEDOM & FLEXIBILITY
As a contractor, you are your own boss. This is particularly true for limited company contractors, where the company you work for becomes your client. There is therefore far more independence in the way you work, including the freedom to choose when you work and for how long.
Alternatively, using Employment Business (Umbrella) solutions offers the freedom and flexibility of moving from assignment to assignment. This means you can develop your career and experience, while maintaining the benefits of employment. For example, Danbro’s Employment Business solution includes: statutory payments (SSP, SMP, SPP), personal accident insurance, pension scheme, free review with Danbro Financial Services, and Bupa Cashplan*.
Contracting through a limited company can provide significant tax-planning opportunities, potentially reducing your overall tax burden and increasing take home pay. Tax planning and accountancy aids such as the Danbro App and FreeAgent accounting software allow you to access information and find solutions for limited companies.
Depending on your circumstances, you can offset your allowable business expenses against your income to further reduce your tax bill.
One thing is for certain; the UK economy has and always will rely on the flexibility and skills that a contingent workforce provides. With more investment in manufacturing sectors outlined in the Spring Statement, the need for flexible workers is increasing.
This, along with the power to dictate your earning potential, when and how you work, and ultimately take control of your career, makes becoming a contractor a very attractive proposition indeed.
* Please be aware that this is not a contractual right and at Danbro’s absolute discretion. Danbro reserve the right to terminate participation in the scheme, to substitute another scheme, or alter the benefits available to you under any such scheme.