Contracting

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