Freedom and flexibility are just some of the reasons that make contracting a desirable lifestyle. But in spite of all its benefits, there can also be a number of challenges that come with the lifestyle. According to a recent study, the self-employed are facing issues with their finances.
The study, which surveyed contractors and freelancers, has revealed that many are struggling to manage their money compared to their permanent employee counterparts, they are falling victim to financial shocks and they don’t have any form of income protection.
What did the results show?
According to LV=, of the 9,000 self-employed workers surveyed, saving money is proving to be a challenge. 41% admitted that they can’t afford to save money each month, with 11% saving less than £50. Lack of protection seemed to be a recurring theme amongst the respondents, with only 11% having some form of income protection.
In addition, 28% are worried about having an accident and not being able to work and a similar 29% are worried about falling sick. If they were unable to continue working and lost their income, a third of respondents admitted that they would survive for less than three months.
How could an umbrella company help?
Using an umbrella company may be an easy way of helping the self-employed to manage their finances. Contractors could enjoy the best of both worlds – the freedoms of self-employment and the security of employee benefits. And there are a no shortage of benefits available as employees have access to holiday leave, maternity & paternity leave and pension contributions.
Your tax and National Insurance contributions will also be deducted from your wage, meaning you won’t be left with any nasty surprises.
Help from Parasol
To find out how Parasol can help you with your finances and for more information about the benefits we can offer, give the team a call on 0800 464 0409 or drop us an email.
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