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If you’re considering making the leap from paid employment to contracting, the chances are that there will be a lot of things on your mind. Below, we’ve rounded up some top tips to help you become as successful and as productive as possible in today’s competitive marketplace.
- Build a rainy day fund
Moving from paid employment to contracting will likely see a significant increase in your pay, but you must be prepared for the worst-case scenario. As a self-employed contractor, it is sensible to prepare a rainy day fund. If you go through a “dry period” where you struggled to find work, or fall ill, having 6 months’ salary hidden away will offer you added peace of mind.
- Work with an accountant
Whether you’re self-employed or forming a limited company, working with an accountant will allow you to sleep easy at night, knowing your books are in good working order and that you are covered should HMRC want to investigate your finances. Make the investment.
- Network
Working through an agency or via job boards is a good way to get started in contracting, but by maintaining good relationships with previous employers and companies, you’ll find it easy to secure new work as and when needed. Don’t rely on the internet to keep you fully-booked!
- Think about IR35
It’s also important to consider upcoming changes to IR35 in the United Kingdom, which may leave you worse off or owing the government thousands. Speak with a specialist advisor to ensure you’re not going to be affected, and if you are, consider operating your work under an umbrella contracting company, who can shield you from these changes and offer you PAYE terms with the benefits of being self-employed. Shop around for the very best providers.
- Be adaptable
If you want to maximise your rate of pay and endure a long and successful contracting career, you’re going to need to be adaptable. Make compromises when the market is quiet, travel to other parts of the country (or even abroad) and accept a lower rate of pay if you’re struggling to find work at your ideal rate. It’s better to be earning something than doing nothing at all and worrying about how you’re going to pay the mortgage on time. Adapt!
- Focus on your CV
You should make an effort to update your CV very regularly. Every time you apply for a new contract role, ensure it’s suited to the audience, and that you have a cover letter or portfolio to back up your claims. Don’t say you helped X achieve Y growth unless you actually did!
- Get insured
As a contractor, covering your own back is critical. Whether it’s required by your latest client or not, we recommend taking out a contractor insurance policy for added peace of mind. It is inexpensive and gives you coverage should anything go wrong – what’s more, it will make you more attractive to companies looking for contractors, as they know you can be trusted.
- Be prepared for permanent staff
The chances are that you’ll be working alongside permanent staff on contracting roles, and it can be tough to settle in and make friends when you’re only there for a short period of time. You may even find permanent staff that resent contractors, expecting you to know everything about the industry or frustrated that you’ve been drafted in. Never brag about your rate of pay and keep your head down – make friends as you go, but try not to ruffle any feathers!
With the right skills and strategy, you’ll be able to take your contracting career to new heights. Let us know if you have any other tips and tricks and check back soon for more!
