Last Updated on Apr 15, 2020 by James W
If you have recently started working as a contractor, then it is an exciting time. The ability to set your own hours and work in a sector that you love will be a truly rewarding experience. You may come to a point though where the money coming in is not quite at the level you need. If that is the case, then you need to think about how to make more money as a contractor.
How does contracting work?
If you are reading this but have not yet started working as a contractor, you will wonder what it all involves. Contracting is working for yourself on a self-employed basis and tendering for contracts or jobs with clients. If your quote is accepted, you would be awarded the job to complete. Making money is achieved through successfully completing the jobs you are awarded and then invoicing the client for the work done.
Ways to maximize your contractor income
Fortunately, there are many ways to do this and most are quite straightforward. If you need some help, then the below tips are a good starting point:
- Claim back expenses – anything that you buy purely for business use can be claimed back against your tax as an expense. That is well worth doing as it will save you money on your tax bill and mean you keep more of the income you bring in overall. If you feel uneasy about dealing with this yourself, then consider using an umbrella company to help. They will also be able to assist with other issues, from calculating your tax return to dealing with contractor pay
- Chase payments – for many contractors, this is a vital point. When you are busy, it is easy to miss an invoice that hasn’t been paid for a previous contract. The problem here is that a few of those can really drive your income down from what it should be. Take time to make sure you are paid when payment is due.
- Marketing – common sense would tell you that more work means more money coming in. Marketing is a great way to bring more contracts in and see your monthly earnings rise. From putting out flyers in the local area to running online campaigns or through social media efforts, marketing can bring results.
- Invest in yourself – the simple fact is that the more skills you have the more jobs you can tender for and the higher your rates can be. It is a good idea to always be adding new skills to your CV and keeping up to date with the latest advances in your sector. From online learning to attending evening-classes, there are many ways to make an investment in yourself that will pay off.
Making more money as a contractor starts with you
To make more money as a contractor, it will require you to sit down and make concrete plans on what to do next. Any of the points above are great places to start and give real-world ways in which you can try to boost your income. Don’t be daunted – with some planning and effort, increasing your annual income is not difficult.