Rewards of contracting outweigh risks, contractors told

Date: 31st August 2010

Entrepreneurial Brits working in the UK's IT sector could be tempted to branch out as sole traders after one contracting expert's comments.

Advice website ContractEye has suggested that while there is a certain degree or risk associated with contracting, this is far outweighed by the potential benefits.

The website has suggested that IT workers with a specific set of skills, the ability to get on with lots of different people and a talent for adjusting to new roles could achieve long-term success as contractors.

Potential sole traders could also be encouraged to seek the advice of a specialist tax accountant after the website advised that ensuring employment status is also an important way to maximise potential.

"The potential financial rewards reflect the risk contractors take in their business lives," ContractEye said.

"Assuming you've negotiated IR35 successfully, you should be significantly better off that you were in your permanent IT life."

Posted by Thomas Fletcher