Freelancing / Contracting:
Freelancing is a lifestyle choice and financially it can be far more rewarding than permanent roles. Contractors have greater control over their careers and are more independent and flexible than their permanent contemporaries. They exercise greater influence over when, where and for what length of time they wish to commit to a role or working environment. It is principally for these reasons that most people who choose contracting rarely return to permanent roles.

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 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, or the increasingly popular Managed Service Companies (some times referred to as Umbrella Companies) which have become the preferred choice for many contractors since the introduction of IR35 legislation.

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 a number of costs to be offset in certain “trading styles”.

Rewards: The good news
Most contractors can earn significantly more from contracting when compared to a permanent salaried position in the same or similar role. Although market conditions vary remember each hour is billable (not always the case for salaried staff). As ever, it is the balance between supply and demand that will ultimately determine the daily or hourly rate you can achieve.