Becoming an IT Contractor
A lot of organisations now understand the benefits of working with external contractors instead of employing full time staff, and the hiring of IT contractors is definitely no exception. Appointing an IT contractor provides employers with the option to bring in specific resources for particular projects when required.
There are many reasons why you might choose to work on a contract basis with money being the one of the major factors. Contractors almost always earn more than permanent staff which takes into account the lack of pension, holiday pay and sick pay. Our online take home pay calculator can show you exactly how much more you could take home by contracting through your own limited company.
Pay is however just one of many of the benefits of contracting. Others include flexibility, development of a wide skill set, ability to claim expenses... For a more detailed list on the benefits, and disadvantages, to contracting click here
Once you have decided that contracting is the route for you then you will need to decide how you want to work. There are two options available to you:
- PAYE umbrella
- Limited company
Which route to take will depend upon your circumstances although any accountant will tell you that working through your own limited company is the most tax efficient way of working, meaning you will take home more of your hard earned money. If you are unsure which option is best for you then have a look at our comparison table.
Once you have decided how you are going to work you need to secure a contract. Your CV is one of the most important tools to getting that contract. The right CV will get you a foot in the door and as long as you sell yourself in the interview then the contract will be yours. For further advice on writing that perfect CV and performing well during an interview visit our Contractor Careers Centre
You may also find the following pages useful:
Accountants for IT Contractors
Limited vs Umbrella
Expenses
Contractor Guides
Case Study – Moving from Permanent to Contracting
Contractor FAQ’s
If you still have questions about contracting then you can contact our New Client Services team on 0500 152 500 or email Rachel@sjdaccountancy.com
SJD Accountancy
SJD Accountancy are the UK's largest specialist provider of fixed fee, limited company accountancy services to contractors; we've been acting for contractors across the UK since 1992 and have more than 10,000 clients.
We are the only National specialist firm of accountants with offices in all major UK cities so you’ll never be far from your accountant. SJD also have more qualified staff than any other firm in our market with qualifications from the following major tax and accountancy bodies - ATII, ATT, ACCA, CA, ACA, FCCA, ACMA. You’ll also be pleased to know that we are one of the lowest priced as well.
Free face-to-face meetings. This is another unique service, only SJD offers free face to face meetings - tax is complicated and sometimes only a meeting will do.
Unlimited access to your own dedicated accountant. No call centres, no outsourcing, no automated call handling. Simply telephone, e-mail or meet your own dedicated accountant face to face.
Money backed service guarantee. All your telephone calls and e-mails will be answered the same day or we will refund your monthly fee's.
Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market.
All inclusive low cost monthly package which includes completion of accounts, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, unlimited access to your accountant and all company returns. All this for a fixed monthly fee of £95 plus VAT, which is one of the lowest prices in the market.
Appoint SJD Accountancy and never worry about your tax or accountancy affairs again!
You may also find the following pages, guides and case studies useful:
Take home pay calculator - How much could you be taking home
Contractor FAQ - All your frequently asked questions and their answers
First time Contracting or Freelancing? - A summary of the alternatives along with pros and cons
Step-by-step Guide to Contracting - Download a FREE copy of our guide
Limited or Umbrella? Can't decide? - We help you decide which is best for you
Take home pay case studies - Examples of contractors using limited and umbrella companies
Expenses Guide - Know exactly what you can claim
Umbrella company guide - Everything you ever wanted to know about umbrella company services
IR35 Guide - A great plain English guide to IR35
