Do you want to significantly increase your earning potential with the same skills doing the exact same job?
This is the exact opportunity that still exists if you were to switch from being a permanent member of staff to working as a contractor.
The contract world has changed significantly since the new IR35 legislation was put in to force in April 2021. This, along with Brexit has led to a significant reduction in the amount of contractors available in the market. So much so we now can’t satisfy the demand!
The playground is different but no less rewarding. Back in days gone by contractors would jump on to big projects in their swathes regardless of whether they were a 5-6/10 or a 8-9/10, get paid through their Ltd companies and the opportunity was easy to spot and seemingly endless. These days you have to be a bit smarter with how you work, you have to be very good at what you do, you need a connected agent who can unearth the right opportunity and you need to be willing to work hard and sometimes for smaller companies who are not so risk adverse like the big companies. Do this and you can find pots of gold just waiting for you to dip your hands in!
The benefits of being contract are clear:
Higher gross earnings than your permanent counterparts
Higher net earnings than your permanent counterparts
Offset your expenses against profits further reducing your tax liability and increasing your take-home pay
Have complete control of when you take your money and how much tax you pay as a result, this makes sure you take it in the most tax-efficient way to suit your lifestyle
Be able to invest your profits from your Ltd company before the tax man sees any of it
Access to paid overtime
Be paid for every hour you work rather than doing extended overtime to hit deadlines with no extra income
Have significant flexibility to allow for extended breaks in between contracts to suit you and your family and continue to live off available profits in your business
Access to a wider range of companies over time to expand your knowledge, ways of working and best practice.
Considerations:
You are typically on 1 week's notice rather than 4 weeks or 3 months for more senior permanent roles
You will likely be tasked with dealing with some of the tougher projects and problems
You won’t be given senior-level responsibilities
Some of the bigger companies won’t now engage Ltd company contractors due to IR35 considerations
Myths:
Contract opportunities are getting fewer and fewer – Our world is project-driven, and contract opportunities will always be there you just need to know how to find them
It’s harder to get a mortgage – You can get a mortgage once your business has 1 year of trading and a set of accounts behind it.
Contractors are more expensive than perm staff – Not really once you factor in the cost of benefits, pension, ENIC etc there isn’t much in it
A contract role isn’t as secure as a permanent role – You are as secure as you are good at doing the job. If you add long-term value you will not be without work ever. Even through Covid the best contractors were well looked after
You might spend weeks and months out of work – Again incorrect as above
Is going contract right for you? It's important to know what your priority is and structure your future career path accordingly. Do you want to progress up the ladder and see if you can access a Director role within a larger company, access marquee projects, lead teams, manage people and leave the engine room? Or, do you want to stay in the engine room, tackle the technical engineering problems and maximise your earning potential for the level you're at, lead a relatively stress-free work life and get paid as much net income as most directors do anyway? There is no wrong answer, both can be incredibly successful.
My advice, just know which side of that line you want to be. If you decide that going contract is right for you or something that you want to know more about please reach out. We currently have nearly 50 contract opportunities that we can't find enough high-quality contract engineers to satisfy. We have a combined 20 years of experience for you to tap into, please contact either:
Ben Hatherley
02037109772
07441346604
Phil Hodgson
02037108376
07846808528