Thinking of making that first move into Contracting?
Making Your First Move into Contracting: Simplifying the Process
Are you considering a career in contracting but find it all a bit overwhelming? Don't worry, it's actually much easier than you think!
In Ireland, the job sectors offering the most contracting opportunities are Quality Engineering, Manufacturing Engineering, IT, and Aerospace. So why do people choose to contract? There are several reasons, such as redundancy, the desire for more control over work and clients, expanding project experience, or seeking greater financial benefits.
Like any career path, contracting has its pros and cons. It may not be suitable for everyone, especially if you're transitioning from a permanent job. Let's take a closer look at the advantages and challenges.
Pros of Contracting
Increased Earnings: Contracting offers higher hourly or daily rates compared to equivalent PAYE positions.
Variety: You get to work with different clients, companies, and on various projects.
Flexibility: As your own manager, you have control over the projects you undertake.
Work-Life Balance: Enjoy downtime between projects to maintain a healthy balance.
No Office Politics: You can focus on completing the job without getting involved in office politics.
Challenges of Contracting
Securing Contracts: Proactively register with recruitment agencies specializing in your field, monitor job boards, and network with fellow contractors to find upcoming projects.
Downtime between Contracts: Without a contract, you won't be paid. However, the higher earning potential can help minimize downtime and loss of earnings.
Holidays and Sick Days: You won't receive payment for holidays or sick leave, but the increased earnings can compensate for unpaid time off.
Personal Development and Training: You're responsible for your own training to ensure your skills remain current and marketable in your industry.
Choosing between a Limited Company or an Umbrella Company
After securing a contract, you have two main options for setting up your contracting arrangement:
Set up your own Limited company, which requires a business bank account, insurance (e.g., Employers Liability, Professional Indemnity), and a reliable accountant.
Alternatively, utilize an organization that provides Limited company contractor services, taking care of the setup process for you. You can choose the level of service you require and pay a fee based on your invoiced income.
If you're looking for short-term contracting, an Umbrella Company is a suitable option. They handle taxation, accountancy, administration, and provide you with a net salary after deducting national insurance contributions and income tax.
According to Yvonne Brick from Contracting Plus, "36% of surveyed individuals in permanent positions are considering a move to contracting."
The job market is evolving, and more people are opting for contracting over permanent roles. As a specialist senior recruiter in the technical engineering sector at CCP Recruitment, I'm here to provide market advice and assist you in transitioning into your next permanent or contract job in Ireland.
Our offices are conveniently located in Galway, Cork, and Dublin. Feel free to reach out for guidance on your career path.
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