Thinking about leaving permanent employment to become a contractor? Contracting can offer more freedom and higher pay, but it also comes with responsibilities. Here’s a quick, honest look at what to expect.
The benefits
1. Higher earnings
One of the biggest draws of contracting is the potential to earn more. Contractors are often brought in to fill urgent or specialised roles, which means rates are usually higher than in permanent jobs.
And with the right setup – like working through a Personal Services Company – you can keep more of what you earn by claiming business expenses and planning your income tax efficiently.
2. Flexibility and control
As a contractor, you’re in charge of your own work life. You choose your projects, decide when to take time off, and move on when something better comes along. It’s ideal if you value variety and independence.
3. Time for what matters
Many contractors enjoy the space between projects to recharge, travel, or spend more time with family. You’re not tied to annual leave limits. You work when you want to, and pause when you need to.
4. Fast-tracked experience
Because you’re exposed to different companies, tools, and ways of working, your skills grow quickly. Contracting can help you build a stronger CV in less time, great if you’re curious or ambitious.
The challenges
1. Less security
Contracts can be short, and roles can end unexpectedly. There’s also no guarantee of what comes next. You’ll need to be comfortable with a bit of uncertainty (and maybe have a buffer in the bank).
2. Reduced employment benefits
As a contractor, you don’t get paid holidays, sick leave, pensions, or employee benefits. Your rate needs to cover all of that, plus quiet periods between contracts.
3. More responsibility
You’re not just the worker – you’re the business. That means managing your own admin, taxes, and compliance, but this is something that Fenero can take care of, leaving you free to enjoy the benefits of contracting and pursue that next lucrative contract.
Need support?
The choice to contract is a personal one, with your own preferences and circumstances guiding the final decision. If the benefits of contracting appeal to you, but the business and admin tasks are holding you back, Fenero can manage these responsibilities so you can get on with the job you love.
For further advice, contact us on hello@fenero.ie or 01-6877400.
