Optimising income isn’t only budgeting or planning for the days ahead. Along with the freedom of being your own boss comes the responsibility to stay financially disciplined; but what about making the most of your take home pay? Tax planning ensures you maximise your income by paying the lowest amount of tax, by structuring your company correctly.
But what actually makes a good contractor? Below are a few hints and tips which might help you to determine if the contractor’s life is for you.
What type of person makes a good/great contractor?
- Someone who is proactive and a self-starter.
- Someone with skill-sets that are in demand. The good news is, there has never been a better time to become a contractor in terms of positions available or rates of pay. More and more companies are looking to contractors to fill positions, these include IT, Marketing, Sales, Project Management, Engineering, HR, Exec. Management and Telecoms to name just a few. In fact, there isn’t an industry out there, that doesn’t use contractors to achieve a specific goal.
- Someone with the right people skills. The ability to get on with other people is essential, as you must be able to slip straight into a role seamlessly and begin adding value immediately.
- Someone with the ability to deliver results.
- Someone who is capable of looking beyond the project in hand and identifying possible new opportunities for the client, but in a thoughtful and non-aggressive manner. After all, there is no point in annoying everyone by giving them a long list of things that you think could be improved! Incidentally, if handled correctly, these opportunities may lead to more work for you.
Looking to pay less tax?
Find out how to maximise your take-home pay and become a successful contractor in our free guide. Also covered in our guide is:
- Getting started – discover which business structure is best for you and how to get started.
- Your tax and financial obligations – all you need to know about your paying tax, filing accounts and what costs you offset.
- Making your business a success – learn how to grow your business, how to market yourself and to forecast for the future.
Optimise your income by operating through a limited company
If your circumstance allows for you to operate through your own limited company, you’ll be working in the most tax efficient manner possible. The easiest way to determine if this route is best for you is to have an IR35 contract review. Once you’ve handled the tax planning aspect by appointing a specialist accountant, you can rest assured your dedicated SJD accountant will provide you with the best advice.
All that’s left for you to do is make sure you’re giving yourself the best opportunity for your business to thrive, and we have some useful advice on that below:
Do you handle change well? If you do, you are better suited to contracting than over 70% of the population. Most people get stressed and come out in a cold sweat at the mere mention of the word, but an experienced contractor will be able to make the change in his or her stride. In fact, it is wise to actively seek environments where change is a constant, as this is often the place where work opportunities will be found.
Not every job is advertised, but by maintaining a large network of industry colleagues and friends you will put yourself in a much better position when it comes to identifying those hard-to-find roles. You are also less likely to be up against other contractors if you are recommended for the role initially by someone the employer knows.
Make sure you keep your skills as up to date as possible so that you can impress clients with your knowledge of the latest trends, technologies and skills, whatever your industry. It may make the difference between that peach contract going to you – or the next person they are interviewing.
Technical expertise will get you far, but to win the best contracting roles, you’ll need to be able to really sell yourself by ‘wowing’ both the recruiter and the client.
Do your research by visiting job boards and recruitment sites. Find out what jobs are on offer and the typical rates of pay. Whether you’re an IT programmer, a marketing guru or a geo-structural engineer, you need to find out if your particular skills are in demand.
Contact SJD Accountancy
If you have any questions about contracting, or would like any further advice please call our experts on:
Choosing the best contractor accountant
Running your own limited company is probably one of the most fulfilling commercial activities you can undertake, but you must have an accountant that supports you and understands your world. Missing a tax deadline, not paying the right amount of tax or mismanaging your tax affairs could leave you having to pay penalties and back taxes, or even make you more likely to receive a tax investigation.
Although regular SME accountants do have the necessary qualifications, there is a world of difference between providing accountancy services to a local builder and supporting the specific needs of a contractor. You need a specialist accountancy firm that has years of experience in managing contractors and freelancers, and one that will support you with the financial administration duties that are necessary when you run your own limited company. One like SJD Accountancy – and this is why:
- We are the UK’s largest specialist provider of fixed fee, limited company accountancy services to contractors and freelancers.
- We have been acting for contractors throughout the UK since 1992.
- We have more than 15,000 clients.
- We are the only national specialist firm of accountants with offices across the UK.
- We are the most recommended accountancy firm on the Internet.
- We have more qualified staff than any other specialist firm, with qualifications from the following major tax and accountancy bodies – ATT, AAT, CTA, ACCA, CA, ACA and FCCA.
On top of all that, we have also won every relevant industry award possible, including:
- Best Contractor Accountants – Contractor UK 2007 – 2016
- Accountant of the Year – The British Accountancy Award winners in 2011, finalists in 2014 and highly commended in 2012
- Best Professional Team of the Year – UK Customer Experience Award 2011
- Customer Commitment Award – Institute of Customer Service 2011
- National Chamber of Commerce Award 2010
- Excellence in Customer Service – Finalists National Customer Service Awards 2009
- Sunday Times Best Small Companies – Award 2009 – 2007
- Accountancy Age Awards for Excellence in 2007 & 2004, finalists in all years from 2003 to 2010
- Deemed IPSE accredited accountants and fully MSC compliant
SJD Accountancy offers a complete package including; completion of accounts, payroll bureau, dividends, corporation tax computations, personal taxation, free bookkeeping software, unlimited access to your own dedicated accountant and all company returns for a fixed fee starting from £120 plus VAT per month.
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