Contracting
Why choose to become a contractor with Connect Group?
If you are the type of individual that enjoys being your own boss then becoming a contractor may be for you.
Quite simply as a Contractor you decide who you work with, what work you do and when.
You simply tell us when you available to take on a new contract, what type of placement you are looking for you, for what duration and in what location. We then work with you to find you the contract work you want.
There are several benefits to contract work. These include:
Variation
You can work in a host of different companies, across any industry sector of your choosing.
Pay
Rates are often higher in contract placements than permanent ones.
Travel
There really are global opportunities. You simply decide where you go and when!
Tax benefits
The IR35 tax ruling benefits Contractors. Visit www.hmrc.gov.uk/ir35 to find out how.
Demand
The trend of using freelance work forces has increased dramatically in recent years and looks set to continue.
Things to Consider:
Before committing yourself to a career in contract work, we suggest that there are a number of questions you may want to answer for yourself, before making your final decision. These include:
Security?
Q: Do you need the financial security that permanent work offers? Contracting can mean you have some periods of time where you are out of contract and looking for your next project. It also means that you lose entitlement to benefits like holiday pay and sick pay.
Tax & Accounts
As a Contractor you become liable for all tax and accounts issues. This means you will need to keep accounts, pay tax direct and National Insurance contributions. You are in all effects self employed and with this comes a level of responsibility you will need to be fully aware of. Hiring an accountant often helps and if this is an option you would like to explore, you will need to factor in the cost of doing so. For more information go to www.inlandrevenue.gov.uk
Travel
If you are working for yourself you may need to travel to find work. This could mean having to stay away from home for extended periods.
Administration
This all becomes your responsibility, including invoicing and all client correspondence.
Getting Started:
There are 2 ways of getting yourself set up as a Contractor. Firstly there is the option of setting up a limited company or secondly working under an umbrella company.
Option1: Setting Up a Limited Company
If your intention is to become a Contractor for any length of time, creating a limited company of your own is probably the best option for you. This route will put you in charge of the company and its assets. It also provides better financial opportunities. For a comprehensive guide on everything you need to know about setting up a limited company and information on what your responsibilities, please visit www.companieshouse.gov.uk.
Things to Consider when setting up your own limited company:
You need to be aware of the restrictions you are subject to. For example, the money in the company account is not all yours. National Insurance and income tax will still need to be paid out. For more information go to www.inlandrevenue.gov.uk/ir35.
We also advice that you seek independent advice, prior to making your final decision about setting up a limited company; This should be from a legal or financial advisor.
Option 2: (The alternative) Working under an Umbrella Company
In this situation, you can set yourself up as a Contractor and work through an umbrella company, which is looked after by an accountancy firm.
The benefit of this is that the accountancy firm will take on the responsibility of paying the appropriate levels of income tax and National Insurance Contributions on your behalf. This money is deducted from the Client Invoice Payment, leaving you the balance.
To benefit from this service however, the accountancy firm will charge you a monthly fee. This is subject to negotiation and agreement by you.
For further advice on becoming a contractor, contact us and one of our Consultants will be glad to provide you with any information you need.
Alternatively read more (or download further information) in our Contractor pack.
