Contracting is a great job because you get to earn higher pay, encounter multiple occupations, and appreciate the opportunity of working for yourself.
Most people who chose this employment type won't ever think back to choosing permanent employment.
The IT contractors support their clients by providing skills on a B2B ‘contract’, instead of shifting permanent employees.
The IT industry is booming and many people are considering a job change. This year is the best opportunity to become an IT contractor as many people have lost their jobs due to Covid-1. They have started working as a freelancer.
Below mentioned are interesting points in case you're thinking about working up as an IT contractor in 2021.
Research and Analysis
If you are new to this contracting world and don’t know anything about it, then doing deep research about the market becomes a requirement. You have to search for the jobs as per the contract rate in your industry.
To check the contract rate, you can take data from different recruitment sites and see how much the other contractors in your field are being paid.
Looking for contract work
More than 80% of contractors work through an agency as they find it more comfortable and beneficial in terms of financial savings. These hiring agencies pay the taxes of these contractors on their behalf.
You can ask your other contractor friends to recommend you or you can also ask your existing employer to hire you as a contractor.
Choose between Umbrella or Limited
As a contractor, you must choose between a limited or umbrella company otherwise it will be very difficult for contractors to operate as a ‘sole trader’. When you work with an agency, the company will pay your taxes and grant you some employment rights.
Many contractors choose umbrella companies and become their employees. They pay you an amount as a salary weekly or monthly.
Perfect Contractor CV
If you want a contract for an excellent project, you should have a perfect and updated CV. Clients are more interested in your skill set and work experience which you will bring to their organization.
You have to take care of many things while making a CV like - it must be of only two pages or less, to-the-point, and must be written in an active voice.
Make sure that your CV tells everything the truth about your experiences, no fluff, and lies.
You should also make an online portfolio, where you can deeply tell everything about your past projects and skills.
To know more about it, you should read - Best tips by experts to write a Contractor CV
How to handle tax payments?
Like we said above, working with an umbrella company is beneficial as they pay you a net salary after making all the necessary deductions such as - National Insurance, income tax, the umbrella fee, and if there is any other deduction written in the contract.
If you work as a limited company contractor, your accountant will handle everything. But you will have to apply for a tax return by yourself.
Contractors must understand all the IR35 rules and regulations. Be aware of the latest updates and trends.
If you are working for an Umbrella company, you don’t have to worry about it.
Trust us, you will not repent leaving your job to enter in an IT contracting world. Just remember, technology is ever-changing, so you must keep yourself updated.
Now that you have decided to be a contractor. You may have to open an account if opening a limited company, making an online portfolio and website.