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Money worries for the modern worker

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Andy

Money worries for the modern worker

with

Andy

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The modern economy offers all sorts of great perks when it comes to work, including increased flexibility and more choice than ever before over the type of work performed. But it also provides problems, and one of those is the instability that many modern jobs provide. This article will look at some of the main examples of money problems which modern workers in different sectors can face, and how the industry you choose can often lead to a particular type of financial risk.

Zero-hours contracts

When you start a new job, it’s essential that you receive a contract which outlines many different aspects of how you’ll work in the role. It will usually include everything from your geographical place of employment to any rules you need to follow, and in most cases, it will also include hours of work. A zero-hours contract is different, as it means your boss doesn’t have to provide you with any fixed hours of work at all. Sadly, a zero-hours contract often means that income will be a little bit more unpredictable because it’s not always clear when – and for how long – you’ll be working. Sometimes used for shop and factory workers, this sort of contract does provide some flexibility benefits – but it can be a source of financial stress if it’s your main source of income.

Contractor tax

Another modern mode of employment is the contractor route. As a professional contractor, it’s likely that you’ll have some fixed hours – but you probably won’t have long-term security, as you won’t be on a payroll in the way that a traditional employed worker would be. That’s great for those who want to be able to move on at short notice, but it means you’ll have to be organised enough to do the paperwork relating to your tax affairs and to set aside the money to pay your income tax when it becomes due. Using an umbrella PAYE company can be a solution here, as it means you don’t have to deal with the headache of reporting all of your income and allowable expenses to Her Majesty’s Revenue and Customs (HMRC).

Redundancies and cutbacks

While the jobs of days gone by were perhaps not quite as well-paid, as much fun or even as safe as modern work, they were almost always stable – and they did nearly always last for a whole working life with a pension upon retirement. That’s now not the case, as anyone who has ever been through the redundancy process in the uk will know. Redundancies occur when a job post that is currently occupied no longer needs to be filled. Being made redundant does mean that you will lose your job, although it often comes with a pay-off which you can use to cover your expenses while you find a new role. Redundancies can occur in all sorts of different industries and professions, although it is common to see them in sectors which often have to undergo restructuring due to financial pressures – such as the third sector (not for profit) and local government.

In the modern economy, it’s sadly not all that uncommon for people to face money problems. Whether these come from a zero-hours contract or from struggling to pay your tax as a contractor, modern working isn’t as simple as it once was. By making yourself as aware as possible of what sort of contract you have and what your rights are further down the line, though, you can prepare yourself for any money issues which may arise.

Andy McGowan
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