Young Man - Become An It Contractor

By Author: nitin chauhan
Total Articles: 16
Comment this article

1.More Money



You can earn heaps more money as a contractor. Prior to the downturn you could immediately double your money by goingcontracting, and there is still a premium of about 70%. With the recovery, the differential will no doubt rise again.



The good thing about this extra money is that it is all extra spending money. If your take home pay as a Permie was £2,000 a month, and your outgoings came to £1,500 a month then you have £500 left over each month. However, if your take home pay is £4,000 a month after tax as a contractor then, if your outgoings remain the same, you have £2,500 worth of spare money a month. That can soon mount up!



2.Less Tax



Unless you are caught by IR35, and fewer and fewer are, then you will be able to claim lots of expenses against your tax and will be able to pay a much lesser rate than you would as a permanent employee.That can all be added to the pot as well!



3.No Office Politics



You can relax and not worry about having to kow-tow to the bosses ...
... to try and get a promotion. You don't have the deep disappointment each time someone is promoted and it is not you. You don't have the even greater disappointment of someone who is less experienced than you, or who hasn't been at the firm so long, getting promotion before you do.



4.No Reviews



You don't have the worry annually, or every six months of having to go into a review with your boss, where he or she tells you how you are doing and what salary increase you are going to get.If you were a contractor, the boss would be just as worried about you staying as you are about getting renewed so it's more of an equal give and take with contractors.



5.No Worries



Every day you can work out of the door at 5 o'clock with your day's work done and another few hundred quid rung up on the till and you don't have any worries until you arrive at work tomorrow. A lot of Permies take their work and their worries home with them. Not you. All you have to worry about is how you are going to spend the money.



6.Investment



Although contractors are forsaking advancement along the line in terms of a career path, they have an opportunity to make it big when they are young and can enjoy it.



They can invest the extra money that they make on the Stock Market, in Property or in other means, which will give them extra income and get them nearer to getting out altogether.It should be possible for a contractor to put together a plan so that he or she could pack in work in around 10-12 years and to live just on their investment income.They would be retiring young enough to have a really great time.



7. Better Lifestyle



Instead of investing all of money for the future, the contractor could have a lot of fun now at a reasonably early age. If it is a female contractor she could have expensive clothes, nice jewellery, holidays abroad, a beautiful car when she is in her prime and when she can enjoy the extra money most.If it is a guy, he could have a fancy car like a Porsche, good clothes, go to all the best night clubs and attract all the best women – just at the time when he wants to.



When he is ready to settle down he can select the best mate for the future and then start to use his spare cash for investment on the Stock Market etc. so that the can both maintain his lifestyle and have an investment for the future.For both, an investment in an expensive house would have been both good for their lifestyles and a great money spinner in recent years.



So what can go wrong?



Read our other article "Young man – don't become an IT contractor" for the opposite view.



Special Offer for NFP Readers



Worried about S660a complications? IR35 getting you down? Don't take risks.... Use the safest and most reliable Umbrella Company available. Get excellent returns, true online stress free processing, fully inclusive features (E.g. PI) and as an NFP reader, join Parasol IT and benefit from £10 CHAPS fees in January!



Use this special link to ensure you get this great offer:



Names Faces Places Special Offer. You can call our sales team on 0870 744 7890 now!



Gerry McLaughlin is the CEO of UK IT Contractor umbrella companies website www.ITContractor.com.