Previously, we have reported on our blog how many sectors are providing a wealth of opportunities for those who earn their living via contracting, and the latest figures regarding the economy as a whole have added further reasons to be optimistic. According to BBC News, the UK economy is predicted to grow by a welcome 2.5% over the course of 2014. The outlook becomes even more positive when one considers that the 2015 forecast still suggests growth levels in excess of 2%; so the improving situation is not expected to lose momentum anytime soon.
Compared to recent expectations, the strength of this UK economic growth is truly remarkable. In 2013, the Bank of England declared that it would raise interest rates if UK unemployment fell below the level of 7%. This milestone has now been realised following rapidly decreasing unemployment at the end of last year; although the Bank of England has yet to act upon its previous statement. All told, the current situation shows great promise, and contractors have good reason to expect a bright future.
It cannot be overstated how important a strong economic performance is in the world of contracting. When businesses lost confidence in the economy, many chose not to hire contractors or self-employed professionals, and when businesses implemented cuts it was the non-permanent positions, such as those held by contractors, which were the first to go. However, this mindset has begun to shift with businesses realising the value of bringing in skilled professionals on a contract basis and the value this workforce as a whole can bring to the UK economy and businesses within it.
Contracting has many benefits for those individuals that choose to pursue it. It is a competitive market and contractors have to remain on top of their game to keep gaining contracts on a consistent basis. Often, contractors can also take home a higher proportion of their earnings than a more permanent employee of a company would be able to, but it is often left to the contractor to find a payroll solution.
We’ve been working alongside contractors since 2002, and can explain the various accounting and payroll options available to you once we understand your circumstances, giving your honest, impartial advice. Our contractor tax calculator is a great tool which enables you to see how much you could be taking home in comparison to working via PAYE.
Whether you’re an old hand in the world of contracting or are just planning to get started, we are happy to talk with you to ensure you have a payroll solution that suits you. Call us on 0800 195 3750 or email us at firstname.lastname@example.org to find out more.