date posted: 24-02-2017

 

 

 

 

 

The freelancing and contracting communities are growing and a rising number of millennials are embracing contracting as it offers them a flexible approach to working, earning and managing their time. At Sterling, we see this first hand with more and more millennials signing up to take advantage of our umbrella service. 

 

For some individuals freelancing or contracting is a conscious lifestyle choice and certainly, for older workers, it is often something they have worked towards.  For others, it is something they fall into, perhaps because permanent employment opportunities haven’t presented themselves and the solution is to take on some freelance work.  What starts out as a short-term solution to a lack of suitable job opportunities after graduation can quickly turn into a long-term career. 

 

Tech savvy and well educated, this generation is adaptable and is embracing different ways of working.  Their grandparents may have worked for one company for most of their working life but millennials know that a job for life is not an option for them, nor would they want it to be.

The variety and flexibility that contracting and freelancing offer are a perfect fit for many millennials who have grown up in a time of connectivity.   It offers opportunities to develop skills, work in different companies and experience different corporate cultures.  

 

What new contractors and freelancers do need to be aware of is their tax obligations and liabilities.  This can be a particular concern when a young person falls into freelancing without a plan. It is important to have an understanding of what tax needs to be paid and when.  This is important for a number of reasons:

 

  • To avoid unexpected tax bills
  • To avoid penalties or legal action
  • To ensure profitability.  Understanding how much tax you need to pay can help with knowing what to rate or to give you a clear idea how much money you will actually take home after paying the right tax on a particular contract.  
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There are other considerations too which shouldn’t be overlooked such as having appropriate insurance in place and planning for retirement.  Specialist contractor umbrella companies can help with all of the above.  Using an umbrella company can save time and stress, the umbrella service will take care of calculating the correct tax and NI payments and ensuring they are paid to HMRC.  This can be the ideal solution for young contractors, particularly those who want to enjoy the flexibility of contracting but don’t have the time to keep track of earning, expenses and filing tax returns or would prefer to have their tax and administration taken care of for them.   

 

If you are new to contracting or freelancing and would like to find out more about our umbrella service then please get in touch.  One of our friendly team will be happy to talk to you about how we can help, you can call us on 01925 626200 or drop us an email  info@thesterlinggroup.co.uk.   The freelancing and contracting communities are growing and a rising number of millennials are embracing contracting as it offers them a flexible approach to working, earning and managing their time. At Sterling, we see this first hand with more and more millennials signing up to take advantage of our umbrella service. 

 

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