Contract Eye - Information for IT Contractors

Guides to starting up and working as an IT contractor in the UK - from working via an umbrella or limited company, to dealing with accountants, IR35, taxes, regulations, recruitment agents and clients.

For information on IR35, and the consequences if you fall within its scope, click here.

If you're looking to sign up with an accountant or umbrella company, try our directory for some of the leading providers.

Please get in touch with the team if you want to share any contracting stories with us, or make any comments about the site / content.

Tax basics for limited company contractors

A concise guide to the taxes you will encounter as a limited company contractor - Corporation Tax, VAT, National Insurance, Income and Dividend Tax.

What is entrepreneurs’ relief? Guide for company owners

If you sell all or part of your business, or its assets after trading as ceased, you may be able to claim entrepreneurs' relief on the proceeds and pay 10% instead of the standard CGT rate.

How to deal with late payment problems

Here are some proactive steps you can take to maximise the chances of getting your invoices paid on time.

Contracting via an umbrella company – advantages and disadvantages

We look at the pros and cons of contracting via an umbrella company - seen by many as the "hassle free" solution.

Scottish contractors firmly against independence

Almost two-thirds of Scottish contractors said they'd vote 'no' if the independence referendum was held today - a firm rejection of the 'yes' campaign, according to a new poll.

Umbrella schemes which claim to be ‘compliant’… and why they’re not

If you search the web for umbrella companies, you'll often see paid ads advertising '100% compliant', low-tax schemes. So, can an umbrella company be 'compliant' and yet still provide its users with net 80-90% take home pay? The simple answer is 'no' and these are the reasons why.

HMRC’s Contract Review Service – a no-win situation?

New HMRC IR35 guidance contains a section dedicated to the IR35 'Contract Review Service'. Here an expert considers whether contractors are likely to be reassured, and whether using the service still carries significant risk.

How to value your skills and negotiate the best contract rates

The ability to successfully negotiate your contract rate with clients and agents will serve you well in your career as a contractor. Here are some things to bear in mind when working out how much to charge for your skills.

How to choose a contractor accountancy firm

Selecting the right contractor accountant to use is an essential part of the process of starting out in the contracting world. Here are some top tips.

IT contractors and Capital Gains Tax (CGT)

If you make money from the disposal of assets, you may be liable to pay Capital Gains Tax on the proceeds. Here we look at which assets are taxable, and how to calculate your CGT liability at the end of the tax year.