Freelance work has become increasingly attractive to professionals across the UK as people choose short-term contract opportunities and more flexibility.
By opting for contracted positions, people are able to create a better balance between their work and personal lives. Rather than taking on full-time hours and a repetitive routine, contract positions offer a fantastic mix of projects that can challenge and excite professionals.
Here are five of the top reasons for making the switch to becoming a freelance contractor:
1. More challenges
Full-time work can quickly become repetitive for employees as they take on similar tasks every day. Quite often, full-time positions can be relatively restricted. Workers can often be asked to complete the same duties day-after-day, while contract work enables professionals to meet new people and try new fields of work.
2. Opportunities for new work
As a result of the rigid structure of many roles at companies, it is easy for professionals to become settled and content. While they may be content in their roles, they may not have the chance to take on new tasks and learn new skills.
While some employers are open to teaching staff new skills and helping them become more versatile, it can be difficult for workers to experiment with new skills if they do not have the time to do so.
3. Complete control
Although some workers appreciate operating as part of a team with a manager above them, the complete control afforded through freelance work can be especially rewarding.
If there are days you know you will not be productive due to poor health, you can choose not to work and instead focus on recovering for a time which allows you to be more productive in the long term. This can help you make a better impression on clients and take away the monotony often associated with full-time work. If you’re concerned about tax laws and IR35 regulations, freelance accountants are available to ensure your financial records are kept in order.
4. It can help create an entrepreneurial attitude
Many professionals may be tempted to try to make an impact in the business world, but worry that they do not have adequate experience. By taking on freelance work, you can gain a great understanding of financial management and the costs involved in running a company. Setting up your own ltd company can be very financially rewarding as displayed below.
Take home pay comparison for Limited Company, Umbrella (SDC’ fail) and Limited Company Deemed Payment (IR35-caught).
Assumptions: The calculations are based on 40 hours per week, claiming £50 expenses and 200 business miles, with a pension of £12 per month, FRV of 16.5% and a director’s fee of £156 per week. All figures include a monthly accountancy fee of £145 for ‘Limited’ and £125 for ‘Deemed,’ or £18.50 p/w Umbrella Margin. Illustration based on day rates of £250, £500 and £750.
5. Networking benefits
Networking is crucial for any successful businessperson. With services such as LinkedIn now making it easy for professionals to collaborate and exchange ideas, freelancers can use their time to develop close ties with clients and other specialists in their field.
These relationships could prove to be highly advantageous, further your career and establish a strong reputation in your sector.
If you’re considering a contracting career you can check out our downloadable working options guide here, which will explain the different ways in which you can operate as a self-employed professional. Alternatively, you can speak to a member of the Brookson team on 0800 230 0213 who can go through your options with you.