The Benefits of Contracting

Contracting is the preferred arrangement for a growing proportion of the labour force, including freelancers, agency and temporary workers, allowing more people to take the jobs and projects that best fit with their lifestyle and earnings objectives. Many of those who choose contracting and freelance terms prefer the greater flexibility these types of arrangements can deliver, and often take advantage of the greater earning capacity this type of work can afford. With more people choosing to venture out on their own, in preference to relying on a an employer or a regular pay packet, the face of employment is gradually shifting in this direction.

For added convenience and flexibility in contracting, contractors are increasingly choosing to partner with umbrella companies, in order to facilitate their invoicing, PAYE, and employment benefits. By establishing a relationship with an umbrella company, it becomes possible to focus on core skills and driving more business, offloading the admin of the business operation so you can concentrate on getting more work. But what are the benefits of contracting and how can services from Futurelink Group help achieve these objectives?

The Financial Benefits of Self-Employment

Contracting can be a much more financially rewarding way to work, allowing the contractor to establish an hourly or fixed project rate on a job-by-job basis. While there are costs to be factored in for most contractors, this generally results in a better hourly rate for the work they do, than the hourly rate available from a similar employed post.

This is the ideal arrangement for those who work project-to-project, or those who find themselves dividing time between a number of different projects. With an umbrella company in place, invoicing is handled indirectly on your behalf, with the umbrella invoicing your client in the first instance, leaving you free to focus on maximising your income. The contractor is then paid the relevant amount through PAYE, taking into consideration applicable deductions for tax, National Insurance, and other contributions. For those who prefer the flexibility of freelancing, contracting is clearly a preferable route, with earnings limited only by the amount of work you are prepared to do.

Aside from the financial benefits of contracting, and the ability to build an income and a work stream that suits your lifestyle and earnings needs, there are benefits that come from being able to pick and choose the work you do. Contracting and freelancing means you need never be stuck in the same projects, or the same routines for too long. It means opportunities become available that could deliver an increase in earnings, and that you can spread your time most effectively between different projects and employment offers.

This flexibility makes for a more interesting, if less certain, working life. Of course self-employment has downsides, particularly on the administrative side. But with the help of an umbrella company, even the administrative burden of contracting is diminished, helping you narrow down the focus into the most profitable workflows.

Umbrella companies enable freelancers and contractors to conduct their business in a formalised, compliant way, without the need to necessarily spend hours doing the books, working out PAYE returns and invoicing. Under the banner of an administration, or umbrella company, contractors from a range of industries can take advantage of formal commercial structures, while still benefiting from the freedom and flexibility of earnings that comes from working in this way. Essentially, the umbrella company provides a baseline administrative service, enabling the contractor to focus on finding work and earning money. This simplified arrangement is used in practice widely throughout industries where contracting is commonplace, including the construction industry.

Challenges of Contracting

Contracting is not an easy route, and by no means a relaxed, simple way to work, no matter the service you deliver. Accounts need to be kept, invoices sent and chased up, tax returns and PAYE processed – all with accuracy, diligence and to deadline. If you miss these deadlines, expect to be fined. If you’re late with a payment to the taxman, expect worse. Added to that, there is no certainty you will find work, and most contractors can relate to being in a position of having too little work. This is a direct hit on your income, and a direct drain on the time you have available to find paying jobs, whatever your field.

There are challenges that face any contractor or freelancer, including the availability of work, the sales process, compliance and legal issues, and the whole process of actually running and administrating a business to facilitate your primary method of earning an income. Each of these factors can be minimised by working with an umbrella company, who can take the sting out of the administrative side of running your business.

With so many administrative, accounting and taxation burdens incumbent on business owners, the support offered by an umbrella company can be invaluable in ensuring everything is above board, while you focus on building a more substantial business.

Contracting is challenging, but in turn so much more rewarding. Landing your own clients, your own jobs, and your own projects is a more exciting and fulfilling way for many people to work, and by circumventing and minimising the challenges of contracting as much as possible, it becomes easier to find paying clients and focus on delivering a better quality of service, more often and more profitably.

How Futurelink Group Can Help

Futurelink Group provide a range of business and commercial services for contractors and freelancers, which strive to streamline the process of getting a business up and running. These services aim to make contracting more straightforward, and to remove difficult, practical elements of employing yourself. For minimal hassle and minimum cost, it can be possible to benefit from the security and structure of this type of service, which means more time in the week for you to focus on generating revenue. With the backing of Futurelink Group, you can sit tight in the knowledge that the basics are covered, so you can carry on your trade with confidence – no matter your sector or skill.

Now that you know about the benefits that contracting presents, you might also find the following pages useful:

“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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