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:
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.
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 FWA have secured discounted rates from WPA for our clients.
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.
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 www.contractormortgages.co.uk 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.
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.
What Legal Issues Might Contractors Face?
From tax investigations to client disputes and defamation
Does Length Of Contract Impact Your IR35 Status?
Should contractors be wary about working for a client over a long period of time?
What Do Our Contractor Accountancy Packages Include?
All your accountancy needs and more, for one fixed fee.