We’re certainly pleased to see that contracting has become a way of life for millions of people up and down the UK.
Although an increasing number of people are enjoying the benefits contracting can bring, there are still a few pesky myths doing the rounds that could put people off making the leap from permanent employment.
To help, we’ve busted the top five myths in the hope of encouraging more people to embrace the benefits contracting can bring.
I won’t have job security as a contractor
The idea of a “job for life” is fast becoming outdated. People are much more comfortable with leaving for pastures new, especially if they believe the grass is greener elsewhere.
Many individuals look to contracting as the next stage in their professional career – and why not? After spending years perfecting their skills as a permanent worker, they view a contractors’ WorkStyle as the chance to have a better work/life balance and experience a variety of new assignments.
What’s more, you won’t have to worry about finding work. Recent research shows that businesses are increasingly looking to contractors to provide short term access to key skills.
My contractor income won’t be much higher than permanent employment
Contractors can actually earn significantly more than people in “traditional” employment. If your skill set is in demand, you could end up receiving even more!
In addition, contractors can take on a number of assignments at the same time – further boosting their income. This is different to permanent who work for the same company for a set salary.
What’s more, you will be able to claim legitimate business costs and expenses – as long as they’re incurred during an assignment. The types of costs and expenses that can be claimed and reimbursed are dependent on the type of assignment you’re working on and whether it’s subject to supervision, direction or control (SDC).
I’ll lose sick and holiday pay as a contractor
If you decide to go through a compliant umbrella company, such as Parasol, you’ll become their employee. This means you’ll get all the rights and benefits afforded to permanent employees – such as maternity & paternity pay, holiday pay, sick pay minimum guaranteed hours of work and access to a workplace pension.
This means umbrella company contractors can have the best of both worlds. They are able to enjoy all the perks their new career can bring, safe in the knowledge that their employment rights are protected. How’s that for peace of mind?
My skills will become outdated as a contractor
Continuous training will help contractors keep their skills up to date. As mentioned before, keeping an eye on the latest trends and developments in your industry could see you receive a healthy rate of pay.
It’s also possible for contractors to take part in training courses either during or between assignments. This means they can constantly top up their skills and make themselves more attractive to potential clients.
Becoming a contractor is too complicated
Many people believe that contracting involves a mountain of paperwork. Thankfully, a compliant umbrella company will take care of all your income tax and national insurance obligations – saving you a potential headache!
Umbrella companies have traditionally been used as a bridge between permanent employment and running a limited company - something our sister company, ClearSky Contractor Accounting, can help with.
This means people can dip their toe into the world of contracting and learn the basics before making the leap into self-employment.
If you’re thinking about making the leap, Parasol is the clear choice.
Our dedicated team of experts is on hand to provide proactive advice and help you remain on the straight and narrow. This allows you to concentrate on your exciting new career, safe in the knowledge that we’re with you all the way.
We certainly hope we’ve been able to clear up a few myths and help you see that contracting is the way to go. If you’d like more information, please get in touch with our team.