Contracting can open many doors for people who want to work independently. It allows you to make decisions about your future and decide the direction you want to take your career. Here are the main benefits of being a contractor.
Usually, contractors spend short amounts of time in different companies working on different projects. Through this you will meet a large number of people in the market, this is a great benefit of being a contractor as you get to meet a huge variety of people with many different skill sets that may come in useful further down the line. In the long-term, your connections can help you be employed the whole year-round.
After contracting for a few years, you will have been exposed to a large variety of market and business challenges. Showing your diverse set of skills and understanding can help you both in finding solutions for project challenges but also show others your unique experience building yourself a great reputation within the market. With experience and reputation, it becomes possible to increase your daily rates.
3. Choosing when to work
Having the ability to choose when you work can be hugely beneficial to contractors as you are not constrained to a certain amount of time off. For example, if commitments outside of work needed more attention, it would be possible not to work for a few months. However, if the circumstances change picking up work again shouldn’t be too difficult. Especially if you have specific expertise, you become well connected through time, or have partnered with a competent recruiter like RED10.
Having the flexibility to work when you want to allows you to do things that those with a 9-5 may have less opportunity to do. Travelling is a great example of this; if a contractor decided to work solidly for 9 months you might decide to take off the extra 3 months a year to go and travel the world without having to worry about going back to work.
5. Potential to increase earnings
Developing expertise in certain areas means your skills are frequently in demand. This has a few advantages; with a demand for your expertise selecting higher paid contracts is possible. Contractors charge daily rates; you can often work at a higher rate of pay than permanent employees. If you find a company that really needs you to work overtime, you can also benefit from overtime rates. Additionally, working as a contractor means for the moment you are solely responsible and therefore liable for making your own Tax status determinations and any applicable tax deductions. However, with the delayed IR35 reform due to now come in effect in April 2021, the tax status determination will be the responsibility of the end Client.