| ClearSky Accounting All the advice you need on starting up and working tax efficiently. Click here, or call 08000 325 326. |
IT contractors and other freelancers tend to be highly skilled professionals who are hired by client companies to plug short term gaps in projects. Contractors are typically hired on 6 month or 12 month contracts to fulfil a specific role on a project.
Contract rates vary a great deal according to your skill set, but typically contractors are better paid than their 'permanent' employee counterparts, however there are a large number of things to consider before deciding if contracting will suit you.
Unlike permanent employees, as a contractor you will effectively be your own boss - free to a great extent to decide when and where to work (subject to the strength of the market for your particular skills).
Typically, you will also be responsible for running your financial affairs (via a limited company, umbrella company, or more rarely as a sole trader), and reacting to changes in the supply of contract work.
To be successful in a professional sense, clearly you need to be an expert in your chosen field (the rates will typically reflect the level of expertise required for a given role), however being successful in a lifestyle sense is perhaps a more important consideration before deciding to go it alone.
Contractors tend to be fairly self-sufficient, able to work on their own as well as in teams. You must be able to deal with lean times as well as boom times - if you're lucky you may get extensions and be on the same project for years, but there may well be gaps when you're out of contract for months at a time. This insecurity is something many people cannot deal with, so they prefer to stay as permanent employees.
If you're happy that you would relish the chance to work on your own and be responsible for finding work, you will also need to fulfil a number of accounting and administrative obligations. Fortunately, there are a number of specialist contractor accountancy firms out there who deal solely with freelancer and contractor clients, so all the hassle of paying yourself and the tax authorities can be taken care of with a monthly fee.
There are many benefits to becoming a contractor - you instantly gain a great deal of freedom and the chance to decide when and where you work. If you choose the right legal structure to work under (limited company, etc.), you're also likely to pay less tax than a permie. However, you must be able to deal with the lean times and the responsibilities with come with effectively running your own small business.
| Our Partners |
|
Parasol PAYE umbrella Award winning service |
|
Contractor Accountants Full Service, Fixed Fee! |
|
Free Umbrella Company Save over £1400 p.a. |
|
ClearSky Accounting From £95 per month |
|
Fixed Fee Accounting Contractor Specialists |
|
Umbrella4Contractors Low fees, same day setup |
|
Free IR35 / Tax Review Call ICS - 0800 195 3750 |
|
Umbrella Co. Solutions Only £19.95 per week |
|
PRINCE2, MSP & M_o_R Maven Training |
| Contractor Insurance |
|
Hiscox Office Insurance Instant Online Quote |
|
IR35 Insurance Essential Protection |
|
Income Protection If you're unable to work |

| Contractor Services |
|
Compare Insurance Deals PI & Business Liability |
|
Contractor Ltd Company Instant online formation |
|
IT Contractor Pensions The last great tax break |
|
Private Medical Insurance Tailored contractor cover |
|
IT Contractor Mortgages Based on hourly rates! |
|
Protect Your Income Get a PHI quote |
|
IT Contractor Life Cover Protect your dependants |
|
Critical Illness Cover Comprehensive cover |
| IT Contractor Guides |
|
Contractor Umbrella Umbrella Co. Guides |
|
Limited Companies IT Contractor Guide |
|
IT Contractor Rates How much can you earn? |
|
IT Contractor Accountant Accountancy Directory |
|
Corporation Tax IT Contractor Guide |
|
IT Contractor Mortgages How to get the best rates |
|
Contractor Insurance Are you covered? |
|
Contractor Banking Choose a bank account |
|
IR35 Contract Contract review guide |
|
What is IR35? Guide to the tax rules |
|
IR35 Insurance Tax investigation cover |
|
Professional Indemnity IT contractor cover |
|
Umbrella Companies Links to key providers |
|
Limited or Umbrella? Which company structure? |
|
Security Clearance How do you get it? |
Stay up to date with our RSS feed | Terms of Use | About Us | Directory | Site Map | MSC Legislation | Income Shifting
Copyright © 2006-9, Contract Eye Limited, All Rights Reserved.
UK Contractor Guides, Contractor Accountants, Umbrella Companies, IR35, Insurance, Contractor Mortgages
Design by Blue Egg Web Agency