On the whole, contractors can earn more than their permanent counterparts, which is only fair considering the benefits that they have to give up. This step-by-step guide will tell you how to find and what to look for in a contract, as well as giving details on the various ways to operate – e.g. how to actually take home an income from your contract.
Finding a contract
The good news is, despite the fact that the economy is still recovering, the demand for contractors, freelancers, interim managers and consultants doesn't appear to have slowed. Corporates, and even government agencies, are turning to this highly-skilled and mobile work force to perform tasks and manage projects. Contractors and interim managers offer far more flexibility and are a lower long-term cost option, compared to taking on permanent members of staff.
Finding a contract is really no different to changing jobs. You’ll need to make sure your CV is fully updated and then target recruitment agencies which specialise in your particular field.
Ways to operate - Limited Company or Umbrella (and the perils of IR35!)
Click the following link to review our comprehensive comparison table which indicates the differences between working through your own Limited Company or through an Umbrella Company.
Essentially, if you are outside IR35 and intend to be contracting for over three months, you’ll more than likely take more money home if you work through a Limited Company, but you’ll have to do more administration than you would if you opted to work through an Umbrella Company.
So, more money but more work through a Limited Company and less work and less money through an Umbrella Company.
IR35 – this was launched by the government in order to stop permanent members of staff from switching to contracting but retaining the same benefits, risks and working practices as an employee, as well as being able to take more money home by working through their own Limited Companies.
Providing you take the necessary precautions, such as ensuring that you meet all of the conditions in your contract required to stay outside of IR35, and your working practices reflect the contract, then you really have very little to worry about.
Working through your own Limited Company - timeline for getting things ready
If you choose to operate through your own Limited Company what do you need to do first and what is the timeline?
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SJD Accountancy are the UK's largest specialist provider of fixed fee, Limited company accountancy services to contractors, freelancer's and small to medium sized businesses; we've been acting for contractors across the UK since 1992 and have more than 14,000 clients.
We are deemed IPSE Accredited Accountants and fully MSC compliant and are the only National specialist firm of accountants with offices and meeting locations across the UK.
SJD also have more qualified staff than any other firm in our market with qualifications from the following major tax and accountancy bodies - ATT, AAT, CTA, ACCA, CA, ACA, FCCA.
- Unlimited face to face meetings across the UK. Tax is complicated and sometimes only a meeting will do, which is why we offer unlimited face to face meetings across the UK.
- UK’s Largest contractor accountants with more qualified staff. No call centres, no outsourcing, no automated call handling. Simply telephone, email or meet your own dedicated tax expert face to face.
- Money back service guarantee. All your telephone calls and emails will be answered the same day or we will make a full refund of that months fee.
- Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market.
On top of all that, SJD have also won every relevant industry award possible, including:
- Best Contractor Accountants - Contractor UK 2013 - 2007
- Accountant of the Year - The British Accountancy Awards 2011
- Best Professional Team of the Year - UK Customer Experience Award 2011
- Customer Commitment Award - Institute of Customer Service 2011
- National Chamber of Commerce Award 2010
- Medium firm of the Year - Finalist Accountancy Age 2010
- Excellence in Customer Service - Finalists National Customer Service Awards 2009
- Sunday Times Best Small Companies - Award 2009 - 2007
- Small firm of the Year - Accountancy Age 2007 & 2004 and finalists in 2012 and all years since 2003
- Deemed PCG accredited accountants and fully MSC compliant
If you have any question about contracting or would like any further advice please call our New Client Services Team on 0500 152500 / 01442 275789 or email firstname.lastname@example.org
0500 152500, 01442 275789