A recent report indicates that nearly one in five small businesses would currently be more likely to bring in an independent contractor than a new full time employee to meet their business needs. This represents a fairly dramatic change to the mindset of small business owners over the last few years, and indicates how independent contracting has become much more common in a range of businesses and industries.
Of those who stated that they would prefer an independent contractor, the vast majority (75%) said that it was because they did not feel that they required a full time employee; this is particularly evident in specialised areas such as marketing and information technology.
Whilst small businesses increasingly recognise a need to make use of such specialist skills, it is often more appropriate and efficient for them to bring in an independent contractor who already has these skills and relevant training than it is to invest in training a dedicated employee within their own staff. For contractors with these specialist, transferable skills, this means that they are more frequently able to choose their assignments and enjoy a more satisfying career.
36% of the business owners surveyed also stated that they use independent contractors to reduce their own tax and benefit costs, which is, of course, a vital consideration for businesses in the current economic climate. Whilst this reduces costs for the employer, it does move some of the burden onto the contractors themselves who must then ensure that they are compliant with a variety of legislative and tax requirements.
Here at ICS, we have a wealth of experience in administration and accountancy services for contractors across the UK in many different sectors and industries. Our contractor payroll services and accounting solutions make it easy to ensure compliance with all the relevant legislation, whether you choose to work as a sole trader, run your own limited company or operate within our umbrella company, so that you can enjoy a fulfilling independent career. For advice on the correct solution for you, contact us to request a free personal report.