UMBRELLA company, Tarpon, are encouraged by a new study looking at the financial priorities, lifestyles and motivations of the contracting and freelance industry. The study has enabled an in-depth view into the reasons behind many choosing to become a contractor or freelancer in the UK.
The outcome of the study, conducted by contractjobs.com and the FPS Group, identified that contracting has now become a preferred career choice for those currently contracting here in the UK. The survey revealed that a surprising 68 per cent of contractors confirmed their motivation as the flexibility over working hours and ability to choose contracts. The survey covered 1,605 contractors across the UK.
Many believe that the rise in popularity of contracting is down to the current economic climate, which has resulted in fewer permanent opportunities. As the study revealed however, only 30 per cent of contractors chose this career path as a result of the economic downturn.
The study also revealed that nearly a quarter of those surveyed have been contracting for more than ten years, with around 40 per cent of those currently contracting having done so for at least five years.
A spokesperson from umbrella company, Tarpon, commented: “This study, and the recent news that the contractor jobs market is continuing to outperform predictions, helps illustrate that contracting is a promising career path with many different opportunities. People are realising that permanent employment is no longer the only option.
“This is confirmed by 60 per cent of respondents in the survey planning to continue contracting though an umbrella company on a long-term basis.”
The survey also showed that payroll is not a large issue for contractors, with PAYE umbrella companies and agencies being used by 37 per cent of those surveyed. 52 per cent still planned on using a Personal Service Company (PSC) to manage their payroll. These contractors may be in danger with HM Revenue and Customs (HMRC), who are already planning to increase investigations over individual tax avoidance.
“Tarpon can not only provide contractors with full compliance with tax legislation, but also offer a genuine employment solution, helping create peace of mind for all our employees,” said the spokesperson.
Matt Huddleston, chief financial officer of the FPS Group, provided further insight into the study:
“Using contractors is very good for the UK economy as it allows companies to flex, bringing in specific skills as and when they need to. Our survey shows that contractors actively chose to work in this way because of the flexibility it brings them, which is probably why they also take managing their finances and planning for the future very seriously too.”
Tarpon are an umbrella company specialising in contractor tax efficiency, enabling contractors to maximise their income and streamline their admin. Tarpon also provide contractors and agencies with professional advice surrounding potential employment law and tax challenges, including IR35 and AWR.
Discover what your take home pay will be with Tarpon by using our online umbrella company calculator. Or speak to one of our experts, by calling 0800 434 6402.
Tarpon UK Ltd,
Wigmore Park Centre,
tel: 0800 434 6402
Contact: Darren Paterson