Life as an IT Contractor

Are you dissatisfied with your current role?

Do you find yourself sitting and looking at your screen dreaming of what it would be like to ‘go it alone’ and become a contractor? If this sounds like you – dream no more! This week’s article gives you a snapshot of what life is like as an IT contractor.

First off, we look at if now is the right time to become a contractor.

Are the market conditions right?

The Autumn Budget in November made sad reading. Economic growth was slow, and borrowing was up. However, news from the Spring Statement shows that things have improved. Productivity has increased, economic growth has been revised and borrowing is down.

Brexit continues to cast a cloud over us and organisations continue to put a hold on hiring plans. Which means they are turning to temporary talent to fill gaps.

If you are planning on making the leap to contracting now could be the time to do it.

Straight from a contractor’s mouth

Tim, who has been an IT contractor for three years, states: “I enjoy the freedom and flexibility of contracting. It gives me the opportunity to continually learn new skills. Working for a company on an employed basis, I found that after a couple of years I was yearning to move on as I was bored doing the same thing day in day out. Contracting offers a lot of variety, and I’ve found I haven’t been bored once.”

Tips to make it as an IT contractor

We asked a number of contractors we work with, what it takes to be a successful IT contractor. This is what they told us:

• Don’t be afraid to admit if you don’t know something. It’s not a failure. Say, “I don’t know, but, I’ll find out and get back to you.”
• Don’t be scared to make mistakes. Learning from these mistakes, will make you a better contractor.
• Remember, you are your own boss. You are responsible for keeping yourself on track and for making the final decision.
• You’ll be surrounded by other talented contractors. Take note of what they are doing and learn from them.
• Not only will you be working but you’ll also be running your own business. You will be busy and it’s easy to miss things. At the start of your contracting career find a good accountant who is experienced in working with contractors. 

What to consider when becoming an IT contractor

As it’s been mentioned, contracting gives a great deal of flexibility. However, the downside of contracting is there will be times when you will find yourself between contracts. It is advisable to put money aside to cover these gaps.

Contractors can on average earn up to 50% more than their employed counterparts. You work hard for this money, so you need to ensure that you operate in the most tax efficient manner. As a contractor, you have two options available. You can choose to work through an umbrella company or via your own limited company. A qualified contractor accountant, like ourselves, will be best placed to advise on which route is best for you.

Want to start contracting?

If you are thinking of stepping into the contracting world, gives us a call on 01962 867550 and we’d be delighted to talk you through the process.