Are you currently in a permanent position and want to dive into the world of contracting, and you don’t know where to start, don’t worry Vantage got you covered. Vantage's Kenny Ajibowu sat down with Luke Kavanagh from ICON Accounting to discuss Contracting in Ireland.
Entering the world of contracting can be an exciting prospect for professionals seeking flexibility, autonomy, and diverse opportunities in their careers. However, venturing into this realm without a clear strategy can lead to pitfalls that may hinder your success. In this article, we will explore how new contractors can approach the contract world, common mistakes to avoid, the benefits of contracting.
Approaching the Contract World:
Define Your Goals: Before diving into the contract world, take the time to define your career goals and objectives. Determine what you hope to achieve through contracting, whether it is gaining experience in a specific industry, earning a higher income, or enjoying a better work-life balance.
Research Your Market: Conduct thorough research into your industry and niche market to understand the demand for contractors, prevailing rates, and common contract terms. This knowledge will empower you to make informed decisions and negotiate favourable contracts.
Network Strategically: Building a robust professional network is essential for success in the contract world. Attend industry events, join online forums, and connect with fellow professionals to expand your network and uncover potential contract opportunities.
Develop Your Personal Brand: Your personal brand plays a crucial role in attracting contract opportunities. Ensure that your resume, LinkedIn profile, and online portfolio accurately highlight your skills, experiences, and achievements relevant to your niche.
Common Mistakes to Avoid:
Undervaluing Your Skills: One common mistake new contractor make is undervaluing their skills and accepting low-paying contracts. Understand your worth in the market and advocate for fair compensation based on your expertise and experience.
Neglecting Contractual Details: Failing to thoroughly review and understand the terms of your contract can lead to misunderstandings and disputes down the line. Take the time to review contract terms carefully, including payment terms, deliverables, and termination clauses.
Ignoring Tax Obligations: Contracting comes with unique tax obligations that can catch new contractors off guard. Ensure that you understand your tax responsibilities as a contractor and that this can also all be managed for you through an accounting partner. Make sure to seek professional advice if needed and understand the options available to you.
Benefits of Contracting
Flexibility: Contracting offers unparalleled flexibility, allowing you to choose when and where you work. This flexibility enables you to balance work commitments with personal pursuits and achieve a better work-life balance.
Diverse Opportunities: Contracting exposes you to a diverse range of projects, industries, and clients, allowing you to broaden your skill set and expand your professional network.
Higher Earning Potential: In many cases, contractors have the potential to earn higher hourly rates than their full-time counterparts, especially in high-demand industries.
Claiming Business Expenses: As an independent contractor, you could potentially claim tax relief on expenses relating to the role you are performing. This is a fantastic strategy to reduce your PAYE tax liability on a month-to-month basis and retain more of your income.
Professional Development: Staying on the business expense train; if you wish to upskill or certify with any additional qualifications relevant to your field, you can receive up to 52% of total cost of the training back through tax relief!
Introducing Icon Accounting:
When you know your finances are well cared for, you are confident to operate independently, allowing you to focus your undivided attention on the role you will be performing. This peace of mind is invaluable, enabling you to channel your energy and expertise into delivering exceptional results for your client.
Icon Accounting is a leading and 5-star provider of limited company solutions, accounting and payroll services tailored specifically for contractors. With expertise in contractor accounting, tax compliance, and financial management, Icon Accounting offers comprehensive solutions to help contractors navigate the complexities of contracting with confidence.
As you make the exciting transition from permanent employment to contracting for the first time, there are numerous decisions to navigate and considerations to bear in mind. Selecting the right recruitment partner is essential to your success, the second most critical choice is a reliable accounting partner to guide you through this pivotal phase of your career. We understand the significance of this choice and the profound impact it can have on your contracting experience.
Choosing the right partner goes far beyond mere convenience; it is about ensuring your financial well-being and setting yourself up for success in the contracting world. Kenny’s article underscores this point perfectly! Kenny emphasises the importance of having a solid support system in place, particularly when venturing into the new world of contracting.
At Icon Accounting, we pride ourselves on being more than just a service provider; we are trusted partners invested in your success. Our team of experts is dedicated to providing unparalleled guidance and support every step of the way. From set-up and compliance to ongoing financial management and strategic advice, we are committed to ensuring your contracting journey is as seamless and rewarding as possible.
If you wish to discuss any of the points that Kenny & Luke have mentioned in further detail, please feel free to email me directly at luke.kavanagh@iconaccounting.ie
Now I hope I have been able to convince and not confuse you that navigating the contract world as a new contractor requires careful planning, strategic networking, and a thorough understanding of market dynamics. By avoiding common pitfalls, leveraging the benefits of contracting, and partnering with trusted resources like Icon Accounting, new contractors can embark on their contracting journey with confidence and achieve success in this dynamic and rewarding industry.
Ready to take the next step, feel free to reach out to us vantage@vantage.ie"
Vantage is here for you!!!!!