‘Working 9-5 no longer the way to make a living. Try contracting!’
THE traditional nine-to-five job in an office is under threat in the postCovid world. Not only are more people going to be working from home – contracting has also taken off. And it can pay off in terms of money and job satisfaction if you’re prepared to live with the uncertainty, says Jimmy Sheehan, right, new managing director of Contracting PLUS, a one-stop-shop for contractors.
Do contractors get paid more or less?
More. Independent professional contractors … can generally find work easily on good terms, even during recession. But they must use that money for pension, administration and healthcare. Contractors also have a premium built in to reflect their expertise.
How much extra can they charge to make up for loss of other job benefits?
There are no figures that have been independently verified on this. The % amount can vary between 10% to
40% - or more depending on a number of factors.
Don’t they lose out on things like mortgages and pension?
Contractors must plan their earnings to cover a car, a mortgage, education etc, like most people, and to build a retirement pot. Our financial services at Contracting PLUS include tax advice, a pension to suit longterm goals, and income protection for financial security if an illness means you can’t work.
What about firms that push people into self-employment to avoid giving them their working rights?
Bogus self-employment needs to be stopped. We need to protect vulnerable workers, while still encouraging professionals who want to work on an independent basis to do so.
What are the pluses of contracting for workers so?
They’re vast, but, in summary, I’d say: a. Flexibility in choosing when, where and how you work; b. More opportunity to work with companies you might never work with as an employee; c. Higher earnings; d. Work security. If you become an expert in your field and have knowledge or skills people will pay for, then you will always find work. And, no job is for life anymore! e. Life/work balance – in that order.
How have contractors fared in the lockdown?
Unless they specialised in a badly hit sector like hospitality, they were mostly unaffected. If anything numbers were up; maybe those working remotely decided they could work independently full-time as a contractor. Contracting PLUS saw more people signing up to our Umbrella company service, and we grew clients for our invoicing, payroll and tax services.
Are more people going to be contractors?
Contracting, rather than being an employee, will be more popular than before. Companies want to offer ‘contractor-like flexibility’ but HR policies and fear of setting precedence may hold them back.
What about job security?
I’ve been an employee and been selfemployed. I’ve run successful businesses and one that failed. Personally, I’m confident enough in my ability to start all over again tomorrow. I can imagine no worse feeling than fearing the loss of a job, believing it was your only opportunity in life. I’d urge everyone to have a side-hustle. Not for the money (though that’s nice), but for the satisfaction of building something for yourself.
What about holidays?
Contractors take holidays whenever they want; their rate should have a holiday premium built in. Some work for six months and take a month off before another six-month role, and some work just nine months a year.
Do they pay more or less tax – isn’t it a hassle to work out?
Our tax team ensure clients claim every tax credit and expense they can.
What areas of work suit contract working?
It is ideal for anyone who has a skillset or knowledge another business needs, on a project basis, and is willing to pay for. Popular contract roles are in IT, pharma, medical devices and life sciences, engineering, project management, finance, medical locum (doctor, consultant, pharmacist etc.), and creative media and marketing.
What sectors are doing it most?
Industries using contractors cross all boundaries and include large and small companies, and both public and private sector.