TechNET IT has a successful history of placing contractors in
their first assignment and those who have contracted for many years.
Our specialist consultants are on hand at any time to answer your
queries, help with any problems and generally consultant on existing
and future opportunities that will arise.
Our combination of industry expertise, innovative technology and proven
recruitment processes ensures that clients and candidates benefit from
a fast, high quality and cost-effective recruitment process.
Starting Out as a Contractor
IT contractors / freelancers tend to be highly skilled professionals
who are recruited for short to long term projects. These projects are
generally very specific and require the individual to “hit the ground
running”.
Contract rates vary depending on your skills buy typically contractors
are better paid than their “permanent” counterparts but there are a
large number of issues to consider before deciding if contracting will
suit you.
As a contractor you will effectively be your own boss – free to decide
where to work and when to work. Typically you are responsible for your
financial affairs (whether running through a limited company or
umbrella company) and reacting to the supply of contract work.
A successful contractor will be a specialist in their chosen field and
rates will generally reflect this subject to their individual skills
and how “specialist” they are.
Contractors are generally self sufficient, able to work on their own as
well as teams but as a contractor you will experience the boom and lean
times. If you are fortunate to have extension after extension on a
contract then you are lucky but ultimately you must prepare for the
lean times where you may not find a suitable contract for many months.
The security aspect of contracting is something that needs to be
considered carefully when thinking about contracting.
If you decide to relish the chance to work for yourself and control
your own destiny then you will also need to fulfil a number of
accounting and administrative obligations. Fortunately there are many
specialist accountancy firms in the market who deal solely with
contractors so please feel free to contact our Contract Recruitment
department and they will offer you the guidance you may require.
IR35 and Section 660
IR35 was introduced primarily to stop freelancers from drawing income
in the form of small salaries and large dividends from their limited
companies, where ordinarily they would be paid a standard salary for
performing the same role if they were not working via their own limited
company. In determining whether a person’s employment is subject to
IR35 the Inland Revenue would need to see if the person is ‘employed’
or ‘self employed’ according to the IR35 rules. If you require further
detail please contact our Contract Recruitment department who will
explain the ruling in greater detail.
Section 660 was primarily invented to prevent people passing across
assets and income to family members in an effort to reduce their tax
liabilities, whilst intending to claim them at a later date. However
this rule has only recently been applied to company dividend payments.
Put simply where a limited company director has his non-fee earning
spouse as a joint shareholder, any dividends she receives from the
company should be taxed as her husband’s income. However this ruling is
being fought by several pressure groups.
|
