Show me the money!??

Being offered a contractor role normally means more money. Sounds great – but do you really know what’s involved before taking the plunge?? Instead of seeing pound signs, make sure you have thought about what a contractor position means – it is very different to a PAYE staff role!

Here are some of the key points that you need to be aware of:

1. Holidays

As a PAYE staff member you are entitled to the normal holiday allowance, but as a contractor, you don’t get this! This is not a negative, contractors can still take holidays – indeed as the boss you can decide when to take time off. Bear in mind, however, that you won’t get paid when you’re on holiday – the cost of this is already factored into your day rate.

2. Private Medical Insurance

This would commonly be provided for ‘staff’ members, but as a contractor your client will not pay for it. Not to worry though, there are options out there for contractors and QAccounting have secured discounted rates from WPA for our clients.

3. Sick Pay

As a staff member, typically you would get up to three months full pay if you are unwell or have an accident. Unfortunately for contractors this is not the case. Again, not to worry, we can introduce you to experienced Financial Planners that will talk you through how to plan for this via Income Protection and Life Insurance etc.

4. Buying a Property

It is not abnormal for mortgage lenders to ask contractors for 3 years of accounts when sourcing a mortgage, which in some cases, is just not possible. Have a look online at Contractor Mortgages for more information. As our preferred partner, they will be able to give you advice and guidance when purchasing a property for the first time or renewing your mortgage.

5. Paperwork

It’s no secret, being the director of a limited company can involve dealing with a lot of paper work!! Luckily, that’s where we come in. You concentrate on the job at hand and let us take care of the book keeping, accounting, HMRC returns, VAT and on and on. It’s what we’re here for.

Our dedicated account managers can help with any queries you may have. New to contracting? Contact us for more information on our services and what we can do for you.

More Blogs

Do I need an accountant as a sole trader?

Sole trader accounting can sometimes be simple: some sole traders may well find that they have no need whatsoever for an accountant. However, accountants for sole traders are an incredibly useful resource that can save you a great deal of hassle and time – and potentially even money. If you’re asking yourself, “Do I need an accountant as a sole trader?” – read on. In this blog we cover the ways in which accountants for sole traders can help, as well as how to choose the best sole trader accounting firm for your needs.

Accounting Team

Do I need an accountant If I am self-employed?

It’s not a legal requirement for those who are self-employed to use the services of an accountant. However, working with self-employed accounting professionals who understand the unique needs of the self-employed can often save you time, money and stress. Read on to discover more about the accounting needs of the self-employed, common accounting challenges you may face, and when working with an accountant makes sense.

Accounting Team

Do I need an accountant for my small business?

If you’re a small business owner – or looking to start a small business – you may be tempted to handle the accounting side of things yourself. You may think that this aspect of the business will be simple when you’ve started small…but is this really the case? In reality, small business accountants can save you money. They’re a trusted partner for a range of things, from planning and setting up your business to financial management, tax obligations, business growth strategies and more. Read on to find out how small business accounting services could improve your chances of business success…

Accounting Team