Things to Expect When Transitioning from Full-Time Employment to Contracting

Over the last couple of years, the number of employees making the transition from full-time employment to contract work has risen substantially. There are many reasons for this shift in behaviour, the most notable being the genuine benefits of choosing contract work. 

However, as with any big career change, you should still take the time to research what you’re likely to face. Let’s dive into what you can expect if you take the plunge and transition from full-time to contract employment.

Freedom! Scary or Empowering?

It’s most likely that you’ll find the change from full-time to contract employment both scary and empowering. This is because you’ll be leaving a structured and managed environment to a brand-new landscape of working. 

There’s tremendous power in being able to choose your own employment and get stuck into projects you genuinely are inspired by. However, there will also be processes that you will need to become responsible for – the most notable one being financial administration.

You’ll need to be certain of the finer details of any contract you choose to take on, including the company’s pay rate, typical hours and what’s involved in the position. You’ll need to make sure you have access to all the information you need, from details regarding tax legislation to how you are expected to communicate with your project manager.

It’s best to sit down and make sure you have a good understanding of what route into contract work you want to take, how much time you have to take care of administration issues and whether you have the appropriate accounting knowledge to handle the financial side.

Finding My Own Clients? 

Part of the appeal of contract work is that it puts you in a position of power. You can do the legwork to make sure you find projects and clients that appeal to your morals as well as provide you with work that inspires you and will help your professional growth. 

There is support available to you when it comes to finding clients; recruitment agencies are worth researching more if you’re struggling to know where to begin. 

You’ll then need to think about how you’ll manage the administration of contracting work, including how to manage your own hours, handling the oftentimes heavy amount of administration that comes with working with new clients as well as keeping an eye on the market to source new roles.

What’s My Employment Status?

You’ll need to figure out what your employment status is for tax purposes. This will largely be decided based on what actually happens at your job although it can still be confusing trying to figure out where you fit. 

This is typically where umbrella companies can come to your aid, as they will be focused on ensuring tax compliance and can make sure that their services are scalable to your requirements. 
Taking the leap to contracting can be daunting but with a multitude of benefits including flexibility and varied work as well as freedom, it can be a hugely rewarding choice. Don’t let the paperwork put you off! You can find out more about how Cool Company can help with that here.

Do you want to know more?

Do you have any questions or are you ready to get started with Cool Company?