If you are not yet a contractor or freelancer and are thinking of going down the self-employed route, there has been no better time than right now. If you are already there, then you would probably already be aware of the improvements to many aspects of the self-employed world.

First things first lets talk about money… The highest pay rates rise in seven years has just been recorded for contractors. That says it all really. It was in November 2007 when the hourly rates last increased at such a rate. It might not seem that long ago but the same month saw the start of the full rollout of UK digital terrestrial television switchover. The timing is particularly significant as it was prior to the financial crisis happening and when the economy was seeing huge growth.

The other main factor that contractors are benefitting from at the moment is the amount of demand. Demand has continued to grow for the last year and a half leading to more opportunities for the self-employed.

Demand has a direct correlation to pay. If demand is high and there is a lack of contractors with the ability required, then those contractors who fit the requirements will be able to charge more for their time.

The economy is still recovering and even if a business is growing, employers are understandably cautious of bringing in lots of new permanent staff. They are tending to lean towards the fixed term contract and freelancer option, which is another boost to this sector.

This trend seems set to continue, as there are not really many drawbacks to a potential employer. They may have to pay slightly more for the labor but they don’t have to deal with the problems that employing a permanent position would bring.

It might seem risky at first but once you take that leap of faith there is no looking back. If you have any queries about becoming self-employed or PAYE solutions, give us a call on 020 7078 0211.