If you have just started your contracting journey, or have been contracting for years, you will probably be earning more money than if you were a permanent employee. This makes up for the nature of your profession.
Additionally, your finances are probably more complex, meaning that you could benefit from the services of an Independent Financial Advisor (IFA).
Sitting down and talking things through with an IFA is worth doing; they will review your current financial situation and help you to achieve the financial goals you have set yourself, whether that be to retire early, build a tax-efficient nest egg or provide additional levels of security for yourself and your family.
What does contractor financial advice include?
As your finances are more complex than those of a permanent employee, an IFA can discuss the following areas to ensure you are making the most of your money.
Did you know that if you are a limited company director, your company could be making pension contributions on your behalf? Having your company pay into a pension can be a highly tax-efficient way to make payments. You can invest money directly from the company bank account into your pension.
As a contractor, you can still take advantage of valuable allowances such as ISAs.
For many contractors, retirement planning isn’t at the top of their list. With a higher income than that of a permanent employee, this is now the time to start planning if you haven’t already.
When you leave a permanent role, you lose your entitlement to benefits such as sick pay. By investing in an income protection scheme, you will be protected in the event of illness. This usually comes in the form of a monthly income.
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