| The first thing that people think about when | | | | institutions seem very hesitant to deal with |
| changing to contracting is the improvement in | | | | freelancers or contractors. |
| their salary rate. The financial rewards of | | | | They consider the freelance sector as a bad |
| contracting, along with flexibility, freedom, and | | | | lending risk because of the possibility of periods |
| choosing their own career path, are the chief | | | | without employment and the chance of missed |
| reasons people make the move. With the end of | | | | payments. This is frustrating because it ignores |
| the old culture of job-for-life and the incredible | | | | the fact that most contractors earn twice that of |
| freelance opportunities now available via the | | | | their fixed employment peers. It also can mean |
| internet, freelancing offers a real alternative to | | | | that when banks do offer mortgages, they tend |
| working fixed employment. | | | | to be though the 'self-certification' route and often |
| However, freelancers need to think about | | | | come with massively high punitive charges and |
| different things that they didn't have to consider | | | | rates. |
| when working full time. If not managed carefully, | | | | Conversely being a contract worker brings certain |
| there can also be disadvantages to freelancing, | | | | advantages when it comes to tax solutions and |
| from periods of no work, to the need for | | | | can bring significant financial advantages. As |
| self-discipline (which doesn't always suit everyone) | | | | mentioned above, despite the possible periods of |
| to chasing work and clients down - all are skills | | | | unemployment, it is more likely that freelancers |
| necessary for making a good go of freelance or | | | | will earn twice that of regular employees. Flexibility |
| contract employment. | | | | brings higher working rates. This in turn is |
| Another aspect that is important is the need to | | | | reflected by more flexible tax solutions and |
| keep up to date with all the tax and legal issues | | | | products for those running their own businesses, |
| that affect the self-employed freelance worker. | | | | from Limited Companies to the use of either |
| For example, being a contract worker can bring | | | | Umbrella Companies, or the even more tax |
| certain disadvantages when it comes to choosing | | | | efficient Employee Benefit Trusts now appearing |
| financial products on the market. Contractors and | | | | on the market. |
| freelancers can face problems when searching out | | | | Either way, the freelance worker should make |
| both pensions and mortgages. This is because | | | | sure they are up to date on all the latest tax |
| most banks, building societies and other financial | | | | rules and legislation to maximise their earnings. |