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.
More Posts
Self Assessment – Q & A
Self-assessments. We have all heard of them, you maybe even know what they are. However, here at QAccounting some of our most frequently asked questions are about self-assessments. So below we have outline some of the most common questions we get asked, and the answers we get so tired of giving… just kidding.
Setting Up a Limited Company – 5 Key Things to Consider
If you are looking at going self-employed, then setting up as a Limited Company (LTD) may be the best option for you.
The Benefits of Having an Online Accountant
Here at QAccounting we are part of one of the UK’s largest contractor service providers. We started operating over a decade ago (around the same time DFS started their first sale) and have been dedicated to serving self-employed professionals ever since. One of the perks of choosing and accountant like QAccounting is that we offer all of our accounting services online.