Contractor calculators are very useful tools that enable you, as a contractor, to gain an estimate of your take home pay each week or month. They’re a vital tool to giving you an idea of how contracting life will be, factoring in the rate you charge for contracts and whether you’re affected by IR35 or not.
Brookson bring you a look into how using a contractor calculator can help you get a better idea of your income so that you can plan ahead.
Planning for The Future
If you ask any contractor in any industry they’ll tell you that planning ahead is the most important step to having a successful contracting career. Without looking to the future, contracting life can get quite hectic, especially working under a limited company. Since as a limited company your income isn’t set in stone month-to-month you’ll need to have assurances that you’re financially secure in the weeks or even months of downtime.
With a contractor calculator you’re already beginning to plan ahead by getting an estimate of your take home pay. Without having to calculate tax or hourly rates per week, using a contractor calculator provided by companies such as Brookson, gives you something to work with.
With this look into your future earnings, it allows you to put money aside in preparation for this, for any potential down months or for tax purposes when filing your self-assessment. With the information gained from the contractor calculator, you’re able to approach specialist accountants, who know the contracting business inside and out. With that information and their help, you’ll be fully prepared for the contracting year to come.
Saves Time
One of the largest concerns of people moving into contracting is not having as much free time due added responsibilities. Using a contractor calculator can actually help you save time in the long run, drastically reducing the time you spend working out your monthly and yearly earnings. All without the trouble of stressing over your finances, it’s easy to use and gives you a simple estimate as a result. With that you’re able to take it to a specialist accountant, and already you’ve saved time by calculating your estimated earnings.
Making these small steps allows you to make the transition into contracting that much easier.
As you can see, using a contractor calculator seems like the smart thing to do, especially when you’re new to the industry and uncertain about your financial future. Calculators give you a general estimate based on the rate you intend to charge and factoring in applicable tax it gives you a number you can work off.
Give a calculator a go, see your results and then start planning your future today!