Becoming a contractor gives you greater financial freedom and this brings benefits but also potential pitfalls. Here’s some tips to help you keep on top of your finances.
Permanent employment brings the security of sick pay, pensions and insurance and you need to make sure you don’t underestimate the protection these provide and arrange alternative cover when you start contracting. The pensions advisory service is a great place to get pension information www.pensionsadvisoryservice.org.uk and choosing an umbrella agency means you can enjoy many of the benefits of being employed whilst contracting www.thesterlinggroup.co.uk/umbrella.
As a contractor it’s important you make the most of your hard earned money and set it to work as efficiently as possible. In permanent employment your tax is taken care of but as a contractor you need to capitalise on any personal tax breaks available to you.
There are a huge number of financial services out there but many aren’t really suited to contractors. Pensions and investments need to incorporate flexible contributions and mortgages and protection products may need to be tailored to your circumstances. Seeking the advice of an Independent Financial Advisor who specialises in contracting to help you structure your finances and advise on investments can be really useful. www.unbiased.co.uk is a good resource for finding the right Independent Financial Advisor.