10th December, 2021 I’m often educated by my law trained business partner as to…
Thinking of switching from PAYE to contracting?
Individuals often consider switching from PAYE employment to contracting for several reasons. Contracting offers increased earning potential, flexibility in work hours and projects, and the ability to take on a variety of roles. It allows individuals to work on their terms and take control of their career. However, it also entails greater responsibilities such as taxes and expenses.
The Contractor Life-style
Contracting isn’t just a job, it’s a lifestyle. With leaving the word of employment behind, naturally you are opting to lose the benefits and security PAYE brings.
To help those considering this move, we’ve put together a new case study series. ‘A Day In The Life Of A Contractor’ follows the journey of an individual who has left full time employment for contracting.
My name is Gabrielle and I have had a successful twelve-year career working in IT. For the past five years I have been employed by a large film production company based in London. But during the pandemic, I realised (like a lot of people!) that my priorities had changed. I enjoyed more time at home with my two sons and not having to commute to London every day. I therefore decided to take control of my career and become my own boss.
Last year I left my employment and set up my own company, GLU Consulting Ltd, providing specialist IT consultancy services to film production companies. Whilst my working arrangements are quite flexible, I typically work 5 days a week, charging £650 per day for my services.
Given my experience and network in the film industry, I have been incredibly fortunate to land a number of new engagements. Although busy with work, my quality of life has increased significantly, along with my earning potential, which is never a bad thing! Because of this, I am now working towards moving out of my rented property, to purchase my first home. With increased earnings and no commuting costs I am rapidly building up my deposit. I’m excited to begin this new chapter as I work towards seeking a new life for me and my family.
However, now that ‘I am going it alone’, I’m very aware that being your own boss, brings a number of responsibilities I simply had no reason to consider when I was employed. Not least, I now need to manage both my company and personal finances, which all seems rather scary now. I know that tax can be a big issue, so I want to make sure I get it right, whilst maximising my household income and personal savings.
Leaving employment to ‘go it alone’ can be daunting
At WTT, we specialise in helping contractors with tax. Our team is comprised of experts in tax, legal and accounting, offering a broad range of services to individuals, corporates and trusts.
Thinking of switching from PAYE to contracting? Or maybe you are already operating as a contractor?
‘A Day In The Life Of A Contractor’ helps to shed light on the key tax considerations when starting up in business, all the way to shutting up shop and unwinding your limited company.
Sign up now to join our mailing list for exclusive content and advice, following Gabrielle’s steps on switching from PAYE to contracting!
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Got some questions? No problem. Contact us today at firstname.lastname@example.org or call us on +44 (0)20 3468 0000.
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