How To Become A Contractor

How To Become A Contractor

If you are about to start work on a temporary, self-employed or freelance basis, you may not necessarily think of yourself as a ‘business’, but you are likely to be classed as one for legal and taxation purposes, and the most likely set-up is that of sole trader. A sole trader is a business which is owned, run and controlled by one person. If this sounds like it applies to you, you may find this brief guide on how to become a contractor useful.

Working as a contractor can be rewarding and profitable but, like any business, it requires commitment and hard work. After all, your financial security depends on your doing a consistently good job. For that reason, many people prefer to dispense with distractions like invoicing and tax and opt to use a professional service to manage these matters. Futurelink Group can do this for you, and much more.

Find out about our Contractor Tax Solutions!

Becoming a contractor is a straightforward process, which first of all requires you to register as a self-employed person with HMRC. You can do this online and will then receive a Unique Taxpayer Reference (UTR) and be set up with a Self Assessment account via which to submit your annual tax returns.

What are the benefits of operating as self-employed contractor?

Becoming self-employed can afford a degree of flexibility and control over your working life that many people find attractive. Being your own boss allows you to choose who you work for and when and, depending on your clients’ requirements, may also mean that you can choose your own hours.

Are there any disadvantages to becoming a contractor?

As a sole trader, you are personally liable for any losses or debts incurred by your business. As most contractors do not risk any money, this may not be a concern, but if you do need to make any financial investment, you may wish to consider whether limited company status might be more suitable.

It is important to note that you could also be held personally liable for the cost of any mistakes you make as a contractor, and you should protect yourself against potential negligence claims from clients by taking out Professional Indemnity Insurance, also known as Professional Liability Insurance.

As a contractor your income may not be guaranteed, and a mortgage or other finance can be difficult to obtain. You will also be responsible for your own pension arrangements. We can assist you to gain access to these and a range of other benefits

Our expert service on how to become a contractor

For more information on how to become a contractor and to benefit from our contractor tax solutions, simply give us a call on +44 (0)1923 277 900 or use the quick registration service on our website. Putting your tax affairs in the hands of a specialist company relieves you of the administrative hassle of handling your own invoices and other paperwork, so that you can concentrate on what you do best.

“I’ll most certainly pass on your details to people I know. You run a great service there, keep up the good work.”

William Cadden, Self-Employed Contractor

“For me, Futurelink Group was the best solution, as a foreign and a lack of knowledge of the UK rules, they were extremely helpful in all aspects. Always fast in answering all my questions. I almost didn’t do anything and they put me on track to invoice and receive my payments. I can fully recommend them.”

Ronaldo, Umbrella PAYE contractor

“WS Contractors Ltd are extremely happy with the services that Futurelink provide. The efficient and friendly staff are always willing to help and assist. The feedback from our operatives is positive and pleasing. We would recommend Futurelink to all new recruits joining our team.”

Michelle Hughes, WS Contractors Ltd

“We at Gemini would like to thank you and your team for all your help and support in connection to payroll solutions. We find Futurelink Groups approach to be responsive to action when required with a courteous and bright manner – keep up the good work!”

Frank Mcfarlane, Gemini Security Services Ltd

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Futurelink Group consists the following companies, all incorporated in England & Wales: Futurelink Group Ltd (0620 6129), Futurelink Accountancy Services Ltd (0532 0147), Team Construction Ltd (0493 5270), Horizon RCS Ltd (0620 6202) and Horizon RCS Europe Ltd (0620 6136). Privacy Policy | Terms & Conditions