20 May The Truths Behind Myths of Working as a Contractor
Many employees in the UK are exploring new careers. Thanks to the ever-changing work landscape, people have begun to see opportunities outside the traditional office setup. The pandemic made it evident that the remote work setup can be advantageous in its own ways. It also highlighted the kinds of work that are necessary but can be done over the internet.
Because of these reasons, more people prefer self-employment, which gives them the freedom to choose the service they offer, the clients they serve, and the freedom to work in any location and timeline. As of March of this year, there were approximately 4.33 million self-employed people in the UK.
Despite growing demand and interest in this line of work, some people still have their apprehensions about self-employment. Most are due to the surrounding myths. If you are interested in such a line of work but still have some doubts, maybe this list of myths and the truths behind them could help.
Myth 1: Working as a Contractor Does Not Provide Job Security
There is truth to this myth. However, it is also true that no job offers 100 per cent security. Even if you work in a huge corporation with a stable career, there is still a chance that you might lose your job. The pandemic is one example of how supposedly secured companies laid off many of their employees.
The great thing about being a contractor is that you would not be tied or limited to one service. If you have many skills and talents, you can always find work. The situation may be unpredictable, but as the talent yourself, you control who to work with, what kind of projects to accept, and how long the project could be.
Myth 2: The Income Is Just the Same
This myth is not valid. The income you might get as a contractor depends on you. If you can take on more than one project, that means you can earn more. If your services are in demand, you can increase your rates and make the money you think you deserve. Working in a company can give you a stable income, but working independently can allow you to expand what you earn. It all depends on you.
Myth 3: You Get No Employee Benefits
This myth is not somewhat true. However, there is a workaround on this. Remember that working on your own means you only deal with deadlines you set. You do not need to request vacation leave since your schedule is up to you anyway. You can go on vacation any time you want and work in other locations if you wish. Moreover, you can also apply for your healthcare and other supposed employees perks on your own.
Myth 4: Setting Up an Independent Company Is Complicated
This myth is a bit true too. Setting up your agency would require paperwork and a budget. Plus, you need to manage your finances and pay your contributions. However, you can always seek help from service providers to assist you. You can find various tax consultants dedicated to servicing self-employed and contractors.
Whether it’s permanent or temporary employment or freelancing, every job has its pros and cons. Your work would depend on how well you deliver your services, so do not limit yourself to the environment you are used to. Entering a new career always looks complicated, but there are many ways to make it all easier.
If you need contractor accountants in London, Accotax is here to assist you. We are dedicated to helping beginners and contractors reduce their fines and taxes and raise their profits. We use high-end accounting software solutions, so you get automated and efficient accounting. Contact us today to learn more about how we can help.