Pfizer, Johnson & Johnson, Bayer, Hoffmann–La Roche, Novartis, GlaxoSmithKline, Sanofi-Aventis, AstraZeneca, Abbott Laboratories and Merck & Co collectively turnover £250 billion, employ nearly one million people including tens of thousands of contractors.

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You might ask yourself why these companies make use of contractors, and not just hire more employees. Contractors provide a growing and valuable flexible workforce. They also don't come with the financial burden permanent employees carry, so no pension, holiday day, sick pay, workers rights or expensive Christmas party invitations.

So who or why would anybody like to become a pharmaceutical contractor?

• Higher daily rates
• Higher take home pay after tax
• Flexible work patterns
• Fewer office politics

• A choice of working environments
• Develop a greater range of skills whilst being paid
• Opportunity to work abroad
• Be more judged on your abilities rather than the typical personality contests that exist in many companies

There are massive advantages to freelancing and contracting – there are plenty of people who’ve already done it and who are reaping the rewards.

Once you've made your mind up to contract and maybe found a few assignments that interest you, you'll have to make the decision whether to work though an umbrella company or to form your own limited company.

Working through an umbrella company can be the simplest option, however, going limited is the most tax efficient way of operating.

Even if you just plan on contracting for three months, you may still be better off forming and working through your limited company than using an umbrella company. If you would like to understand how umbrella companies work, visit our umbrella company knowledge centre.