As a contractor, you are responsible for your own safety and well-being. You are also responsible for protecting yourself from financial and legal risks. Here are some tips on how to protect yourself as a contractor:
- Get everything in writing. This includes your contract with your client, as well as any other agreements or arrangements that you have. Make sure that the contract clearly sets out your rights and responsibilities, as well as the payment terms.
- Have adequate insurance. This includes public liability insurance to protect you in case you cause damage to someone else’s property or injure someone while you are working. You may also want to consider professional indemnity insurance and contractors’ all-risks insurance.
- Keep good records. This includes keeping track of your income and expenses, as well as your hours worked and the projects that you have worked on. Good records will help you to comply with your tax obligations and will also be useful in the event of a dispute.
- Be aware of your rights. As a contractor, you have certain rights under the law. For example, you have the right to be paid on time, and you have the right to a safe working environment. If you have any concerns about your rights, you should speak to a legal advisor.
- Join a professional association. There are several professional associations for contractors. Joining a professional association can give you access to support and advice from other contractors. It can also help you to stay up-to-date on the latest industry news and regulations.
Here are some additional tips that may be helpful for contractors:
- Be careful who you work for. Research your potential clients before you agree to work for them. Make sure that they have a good reputation and that they are financially sound.
- Don’t be afraid to negotiate. If you are not happy with the terms of a contract, don’t be afraid to negotiate them. You can get a better day rate, more favourable payment terms, or other benefits.
- Be aware of your tax obligations. As a contractor, you are responsible for paying your own taxes. Make sure that you are setting aside enough money to cover your tax bill.
- Get professional advice. If you have any questions or concerns about your contracting business, you should speak to a qualified accountant or solicitor.
MyPOM can help you to protect yourself as a contractor. We offer a range of benefits, including jury service cover, SSP/illness top-up, tax enquiry cover, tax & legal helplines, agency default cover, umbrella default cover, and client default cover.