Guide To Becoming a Contractor

Becoming a contractor can feel like quite an intimidating process at first, but in reality, it can be a straightforward process and Instinct are here to help guide you throughout the process as we have done with hundreds of others moving into contracting.

Firstly, being a contractor, and working on a Fixed Term Contract (FTC) are very different things. On an FTC you are employed by an organisation, have a salary and all the benefits that come with full-time employment such as annual leave, sick, pension contributions and bonuses.

Contractors on the other hand, tend to work on a day rate or hourly pay basis and work for themselves. Contractors aren’t employed by an organisation and instead work for themselves which can of course come with some fantastic benefits.  

So, who is contracting right for:

Working as a contractor can be a fantastic career for many people and it comes with a range of benefits.

• Entrepreneurs – Do you want to be in charge of how much you earn? As the contractor, you have a much greater say in your earning potential compared to PAYE employees
• People who want a bit more control – Contractors work for themselves ultimately, and have much greater control over their working arrangements, hours and much more
• Lifelong Learners - Experience working with a wider range of clients and organisations to better grow your skillset
• Getting Bored of Permanent Work? – variety is the spice of life so they say, and for contractors gone are the days of 30-years with one company and then retiring! Contractors get to experience a variety of companies and cultures!
• Recently Redundant – Redundancy is never an easy time, but Contracting can often be the quickest route back into paid work, and can be a foot in the door for future opportunities

How to operate? 

Read our previous blog to find out a bit more about the best ways to trade as a contractor, but in brief as a contractor you have two main ways to trade, these are Limited Company or Umbrella company. One key factor for which option will be best for you will be the IR35 determination of the role, but we’ll touch more on IR35 and Off-Payroll working in more detail in a future post.

Quickest way to get set up?

If you think you’re ready to take the plunge into contracting and you haven’t done so already, call one of our Contract Consultants on 0161 714 0600 and they can give some more tailored advice for your particular circumstances.

The other option is to speak to one of Instincts trusted Umbrella Payroll Partners. We have three preferred FCA approved partners that have been tried and tested by Instinct and are able to set you up as either an Umbrella Company or with your very own Limited Company.

Our Trusted Accountancy Partners

Brookson One - https://www.brooksonone.co.uk/

Nasa Group - https://www.nasagroup.co.uk/   

Paystream - https://www.paystream.co.uk/