Becoming an IT Contractor

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Becoming a Contractor Fact Sheet

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 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, the 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:

  1. PAYE umbrella
  2. 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

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