Inflation is good news for contractors
For some, the news that inflation is on the up has come as a slight disappointment, but there are reasons to be cheerful for those who work for themselves. Contractors and other independent professionals could benefit from the slight rise in inflation as it could allay fears about the affordability of working for oneself in the light of the rising costs of doing business.
The recently reported rise in the Consumer Price Index may not be dramatic, amounting to just a 0.2 per cent swing into the positive, but this could be enough to increase the affordability of working for yourself which is so important to those who want to remain profitable. The Association of Independent Professionals and the Self Employed have welcomed the news in the belief that the overall effect on their members will be a positive one.
However, there are concerns about the potential for an increase in travel costs which will affect contractors and other self employed individuals more than those in traditional employment. The Office of National Statistics believes that this is down to an increase in air fares over the last month, with motor fuels also seeing a rise, albeit a slightly less steep one.
There has been a drop in the costs of alcohol, tobacco and food which will partially offset the rise in travel costs which has resulted in a marginal net inflation level which has seen the trend over recent months continuing. IPSE believe that this is generally a good thing for the self employed in most sectors as the figures are not high enough to trigger a rise in interest rates, but demonstrate an economic stability that should be beneficial to independent professionals.
Contractors always need to keep an eye on the news to ensure that they are up to date with the latest information which will affect them, but our guides contain plenty of useful information which we have put together to help you manage your money effectively. These include a guide to contractor expenses, a guide to the Flat Rate VAT scheme and a number of contractor case studies to help you understand the options available to you as a contractor.
If you’re considering a career in contracting, then our low-cost, fixed fee packages are the best way to get expert advice and support from one of our team of accountants. Call today on 01442 275789 or email firstname.lastname@example.org for more information about our services.