 Risks and rewards of freelancing:
While there are significant benefits to contracting there are also risks involved, you are a freelancer totally dependent on just you to “make it happen”. That said, there is significantly more support available today to the contracting community than say three or four years ago.
Risks: “make it happen!”
This usually means securing that all-important first contract (and subsequent roles), packaging and selling yourself, negotiating your terms, conditions and expenses, (while keeping your expectations in line with the market pricing for your skill sets).
Planning ahead, budgeting and prudent financial management will also be required of you. All these things can be daunting, however, there are many sources of help, advice and guidance available to you…such as this.
Forward planning is critical for sustained success and getting the correct advice and guidance from resources such as Recruitment Agencies, Accountants, and legitimate PAYE Umbrella Companies like Maxim.
These resources can help you manage your affairs and eliminate or reduce the risks you may face. One surprising ally is the Inland Revenue who will allow once clarified a number of costs that you have to be offset against your tax liability under certain circumstances.
Rewards: Now for the good news!
Most contractors can earn significantly more from contract fees when compared to a permanent salaried position in the same or similar role. Although market conditions do vary, for example the IT contractor rate is around £20 to £35 per hour, also remember each hour is billable (not always the case for salaried staff).
Typically IT salaried positions are around £12/13 hr (£25k ish). However, key skills in S.A.P and Oracle can attract significantly more than these levels. As ever it is the balance between supply and demand that will ultimately determine the daily or hourly rate you can achieve.
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