According to the BBC, ‘real wages’ are predicted to finally rise above the levels of inflation for the first time in approximately six years. This observation has been noted by EY, who have stated that a prolonged period of monthly inflation could well see the average earnings rising by more than the cost of living later this month. Apparently, wages are projected to increase by 1.7% over the course of 2014, and greater control over inflation, not to mention the presence of a stronger pound coin, are expected to sustain the current rates of financial interest until late in 2015, when interest is then predicted to increase.
This news is undoubtedly a very welcome announcement for those who have been labouring under the burden of low wages for some time. However, the fact remains that it has been a long slow process for wages to increase above the threshold of inflation, and this wait has proved to be interminable for many people. Because of this, many people have turned to freelancing and contractor style occupations, as these rates have proved to be more stable, and far more generous than the struggling UK wage levels of late years. Contractors in especially lucrative parts of the UK, such as the South East, are actually earning more than three times the national average, and so it is unsurprising to find that such professions have become so popular.
Contracting is obviously a rewarding occupation to pursue from a financial perspective, but it brings a number of very specific concerns with it. The exacerbated financial and administrative responsibilities can be a heavy burden, and so many choose to take advantage of dedicated contractor services. Here at ICS, we are a team of dedicated contractor accountants who offer a variety of administrative, accountancy and payroll services to contractors across a full range of industries. Our contractor tax calculator is especially designed to calculate your potential income when you use any of our services.