How Did Contracting Start

Why Do We Have Contractors?

If you are New to Contracting you'll find there is a need for contractors for a variety of reasons:

1. A business may have to complete a specific job, requiring specific skills within a specific timescale. It may be more cost effective for the company to hire in a contractor with those skills rather than train an employee to do the job.
2. A business may be world-class in widget making but maybe not so hot on HR. Rather than employ an HR team, the company might prefer to take on freelance contractors and let the recruitment agency handle the contractor outside of the workplace.
3. A business who uses contractors doesn't have to pay Employer's National Insurance tax - saving around 13%.

A Flexible Workforce

All of the above factors make it attractive for a business to opt for a contractor workforce rather than a team of full time employees. A lot of businesses will tick more than one of these reasons and several will tick all of them.

From the contractor's point-of-view, there are various reasons why an individual might prefer to be a contractor rather than a full time employee:

1. You get to be your own boss
2. Take time off when you want
3. Get wider experience from a variety of companies
4. Not getting stuck in a rut with one employer

UK PLC

One of the main reasons to turn to contracting is down to money. Contractors will earn more than an equivalent full time employee with the same skill sets. You will have to decide how you want to carry out your business, there are 3 Ways for a Contractor to Trade.

The exact rate you can earn depends on various conditions but it's not unheard of for a sought after contractor, with the right skills, to take home two or three times the amount of a comparable full time employee.

Contracting Is Here To Stay

UK PLC needs contractors to remain competitive within the world economy. A flexible workforce enables industry to call on specific skills as and when required.