Contractor doctor: how much income should I save for holidays and sickness?
Dear Contractor Doctor, Firstly, thank you for your articles. They have proved invaluable for helping me to secure my first contract which I signed last week – yippie! The money is pretty good, certainly better than before. I’m just wondering how much I should put by for holidays and gaps between contracts. What would you advise? Thanks Catherine Frampton Contractor Doctor says: Thanks for your kind words about the site and well done for getting your first contract! You appear to one of those rare breed of contractors that actually thinks about saving the money they earn! Many contractors work out the cost of their holidays by adding in the cost of the money they would have earnt by not going. This is a scary route to go down indeed which could stop you from ever going on holiday! To plan accordingly here’s a few points to consider: • There are eight public holidays in each year • You will probably take less days off sick than when you were permanent. • You’ll want to take the same (or
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