Contracting

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Revision as of 16:53, 11 December 2005 by Shimoda (talk | contribs)
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This article is a basic FAQ about contract work.

  1. Whats the difference between working as a contract and a standard (PAYE) employee?
  2. What are the risks involved in contract work?
  3. I want to get into contracting. What type of company do I need to set up?
  4. What do I do about tax?


Whats the difference between working as a contract and a standard (PAYE) employee?

The Pros:

  • More money then an employee doing the same job as a PAYE worker.
  • Flexibility to change jobs quickly.
  • Ability to move between different types of work, and constantly learn new things..

The Cons

  • No Health insurance, pension, etc unless you get it yourself.
  • The expectation that you can "hit the ground running", you're hired to be more productive then an unexperienced worker, and you'd better deliver.
  • Occasionally there can be periods of unemployment in between contracts.
  • Occasionally, resentment from full time employees. "Contractor scum. Getting paid twice as much for the same job I do..."

What are the risks involved in contract work?

2

I want to get into contracting. What type of company do I need to set up?

3


What do I do about tax?

4