Benefits of Contracting

If you’re using an umbrella company, working as a contractor or a freelancer,  you can visit the link that can show you how much you could take home in working through your own limited company. You can also have an itemized review of the main differences between limited and umbrella company take home amounts.

Whatever will be your industry sector, there would be many benefits or advantages, hence, we consider summarizing the key ones thinking that it can really help you. As expected, they can bring more money,  greater flexibility, increased freedom, wider skill development and a greater chance to be seen in a different perspective by possible future employers (if you still intend going back to being a permanent employee).

As the employee benefits are lessened, final salary pensions disappearing and salaries being cut down,  are reasons why many companies now seek or turn to contractors to fill up positions.

There are many reasons why contracting is a good move. These reasons are the

  • Financial Benefits


  1. An average contractor rate can easily be doubled that of a full time employee
  2. Contractors are paid high because of their skills and flexibility
  3. As a contractor you can demand for your rates depending on the individual skills and other factors which can affect the work.
  4. Contracting through your own limited company would be the most tax efficient way which is not difficult and time consuming
  5. As a contractor you can enjoy an hourly rate and the chance to work overtime at a higher rate
  6. Working or operating through a limited company can give you a chance to have a good tax planning opportunities which can lessen or minimize your total tax problem and increase your take home salary. Building your own limited company will only take 5 minutes
  7. You can offset all of your business expenses against your income to reduce your tax bill


  • Flexibility- Being a contractor would mean that you can also be your own boss. It would then mean more challenges and fun and a greater chance to broaden your horizon and enjoy what it takes to be the boss such as:


  1. Contractors are more independent than permanent employees
  2. You have all the time in the world to choose when you can work and for how long you intend to work
  3. It’s easy to change contracts than to change jobs
  4. Contractors can enjoy the holidays the way they want it to be
  5. The company you’re working is not your boss, but your client, which makes the relationship different
  6. A contractor has more flexibility on the payment terms


  • Skills development- as and to a contractor you will have different contract roles in different companies which can help you build or set up a different skills and experience.

For example:

  1. It can give the contractor a chance to work with different industrial sectors which can broaden your experience
  2. Contractors can gain good views and insights of different company cultures, processes, operations and structures
  3. Working with different companies gives you a chance to build up a CV and to build up a list of reference contacts
  4. A good contractor will always be in demand
  5. A contractor gives you a chance to be exposed to different working styles
  6. Contractors find their own work and see to it that the money keeps coming in.
  7. Contractors are responsible to negotiate their own payment terms and working conditions
  8. Contractors manage their own finances - tax, VAT and national insurance contributions
  9. You have to decide to set up a limited company or trade through an umbrella company. To find out more about the pros and cons of each, please feel free to visit our page on “limited and umbrella”. Whatever you choose, there will be many paper work to do and forms to fill in.
  10. Contractors don't enjoy the benefits and ‘perks’ that permanent employees receive. They have no sick pay and no holiday pay.
  11. It is important for the contractor to build up a good support network of competent people around you who can help you to manage your business effectively.



For further information or questions, you can contact us on our new client services helpdesk for free on  01282 454322/ 02036 977703 or you can send email at

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