A big factor when choosing how to work as a contractor is finances, after all, at the end of the day properly supporting you and your family is what matters. You need to ensure that making the change into contracting, regardless of the industry or sector, that you’re financially secure for the months and years to come. It could be that you’ve been working as an umbrella employee for a few years now and you’re looking to make the switch to be a limited company director. A contractor calculator is the right tool for these questions, giving you an idea of what you’ll be earning in the coming financial year.
Delve into using a contractor calculator to estimate your financial earnings and how that can answer some of the common questions around contracting.
Easy Use
A great concern of many people moving from full-time employment and umbrella companies is the added responsibility of managing your own finances, sorting your yearly tax contributions out and reliable sources of income. Contracting as a Limited Company comes with many of its own challenges, but these can all be alleviated by planning ahead by estimating your earnings.
A contractor calculator uses set criteria to evaluate and estimate your earnings with a simple, easy-to-use slider. All you have to do is enter how much you charge, or looking to charge, per hour or day. This then calculates how much you’ll earn per week per week or month as a Limited company or Umbrella solution. This puts all options on the table for you, allowing to make important decisions, with all the financial information you’ll need.
Financial Knowledge
Outside it’s quick and simple interface, the contractor calculator gives you the financial knowledge you’ll need to properly set up your contracting career. Although it may be an estimate, it gives you the first stepping stone you require to approach trusted specialist contractor accountants. With that information they’ll be able to work with you to sort your finances out for the coming year, removing what many people who’re new to contracting would see as barriers.
With that one step, you’ve made the whole process much easier, as with their years of experience in a large range of contracting fields, a specialist contracting accountant will guide you every step of the way.
Put Money Aside
Saving up money and planning is extremely important when starting out contracting, as usually you won’t be used to the rate at which you’ll be earning money due to the uncertainty of contracts lengths and how much you’ll get paid from job to job. Even though you’ll usually charge a flat rate between jobs, you never know if you’ll need to adjust that rate down the line depending on the state of the current market.
See how a take home pay calculator can help you today. Get in touch with a specialist accountant such as Brookson and get an estimate of your monthly and yearly income to properly prepare for the year ahead.
