Heading into a new year is the perfect time for contractors to reflect on the year we've just had to reflect on what's gone well and what they can improve on.
For many contractors, this will be a great time to learn from the past and create a set of goals to improve their careers in 2023. To help, Umbrella Search has put together this end-of-year review for contractors, so you know how to enter the new year on the best foot.
Umbrella vs. limited company – which is best?
Contractors in the UK usually operate through a limited company or an umbrella company.
If you have been working through a limited company in 2022, it might be time to take a look at making the switch to an umbrella company instead.
After all, operating through an umbrella company offers contractors a wide range of benefits.
Firstly, it means they can avoid the infamous IR35 legislation altogether. This will come as welcome relief to contractors following announcements that no reforms would be made to the legislation in October 2022, leaving thousands of limited company contractors paying too much tax and National Insurance.
As well as letting the contractor forget about IR35, using an umbrella provider also means that the contractor can get on with the task at hand and doesn't have to worry about admin, paperwork and all the duties associated with running a business. Instead, the umbrella company takes care of these tasks for them.
The umbrella company will also invoice the client on the contractor's behalf, meaning invoices are always issued promptly, and any delayed payments are chased accordingly.
By using an umbrella company and, in turn, becoming an employee of the company, the contractor also receives statutory benefits, which include paid sick leave, paid holiday leave, maternity and paternity leave, and a workplace pension. This means no more covering holiday and sick pay out of your pocket.
Finally, there's no need for umbrella contractors to worry about filing for self-assessment. The umbrella company instead pays the contractor a salary, deducting the correct level of tax and National Insurance from their pay.
Improving your chances of winning high-value contracts
Whether you've worked on just one or a handful of contracts throughout 2022, every contractor will inevitably have personal goals for what contracts they wish to work on in 2023.
That's why it's so important to take a look back to analyse how to improve yourself going forward for the best chances of winning those high-value contracts. One thing every contract can do is to get their CV up to date.
Is your CV up to date?
Downtime over Christmas is the perfect time to get your contractor CV up to date, meaning you're ready to get out there and win new contracts in the new year.
Some tips for writing a winning CV include:
- Experience: this is the perfect place to list your experience, showing which clients you have worked with, what roles you have undertaken, and how you benefitted clients.
- Skills: as well as your experience, your CV is where you need to shout about your skills. After all, contractors are often hired to fill a specific skills gap temporarily.
- Personal statement: make sure you use your profile to briefly highlight how you are a great candidate for the role and would be a superb fit for the company. Show what value you can bring and highlight your expertise and unique selling point.
- Facts: it's always a great idea to use facts and figures to back up your points and to show how you have specifically solved problems and offered solutions to clients in the past.
Identify areas for improvement
Another way to improve your chances of winning the best contracts in 2023 is to identify any skills gaps you may have. This is where it's helpful to reflect on the work carried out in 2022 to determine whether you would have benefitted from additional qualifications, skills, or expertise. After all, this is a great way to stay competitive.
The great news is that there are lots of resources
, so it's never been easier to upskill from the comfort of your own home.
Some of Umbrella Search's favourite resources include:
Udemy: this platform offers upwards of 100,000 online courses spanning a range of industries and areas.
Skillshare is an excellent platform for contractors operating in creative industries, offering various courses and online classes.
LinkedIn Learning: popular platform amongst professionals, LinkedIn also offers a variety of online, expert-led courses across various industries, from business and technology to creative.
Future Learn: finally, Future Lean offers a range of free online training courses across various industries designed to help professionals upskill in their chosen area.
Find the best umbrella company with Umbrella Search
The new year is the perfect time to find an umbrella company that fits your contracting needs. Whether you are just switching to an umbrella, are new to contracting altogether, or want to work with an umbrella company that's better suited to your needs, Umbrella Search is here to help you find the perfect provider.
Umbrella Search works closely with contractors to get to know their contractor requirements and needs. This allows us to recommend only the best umbrella provider tailored to you, freeing up your precious time, energy, and effort.
To see how we can help, get in touch with our friendly team this new year, and let us do the hard work for you.
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