We are often asked whether contract MOT Testers and Vehicle Technicians earn more money than permanent employees. In a short answer, yes. In this ‘You Asked Autotech’, Jake Betts, our Recruitment Consultant tells us more about the reasons why contractors earn more than permanent employees.
As a contractor, you can expect to earn anything from 25% up to 100% more per hour than you would doing the same job as a permanent employee. The reason for this is that the work isn’t always guaranteed, so you can’t enjoy as much job security as a permanent employee.
A contractor also has more overheads to think about: insurance, accountant fees, umbrella deductions, unpaid holiday and unpaid sickness. However, don’t let it put you off. Even if you factor in all those costs, contractors can still have maximised revenues.
When a permanent employee buys their fuel for the week, they never see that money again, but contractors have the luxury of being able to claim for their work-related expenses. These include travel costs, lunch, equipment, accommodation, tools, and clothing. Most expenses can be offset against your tax. Fundamentally, it means the more expenses you claim for, the less tax you pay.
If you are a limited business, you can also offset your VAT against your input VAT on your invoices.
Although contract work is never guaranteed, the truth is, if you can source enough work yourself or through an agency, manage your time effectively and keep on top of your paperwork, the financial rewards of a contractor are far greater than those of a permanent employee.
If you have any questions regarding working as a contract MOT Tester/Vehicle Technician, don’t hesitate to ask us! Whether it’s a burning question about becoming a contractor or you just want some more information about something you’ve read about on our website, please feel free to drop us a line to email@example.com.