Six month survival guide for first time contractors

Becoming a self-employed contractor is a huge step in your career. You are moving away from the perceived security of employment to the unpredictable world of contracting. However, the majority of contractors will tell you that the benefits of contracting far outweigh the downsides.

The first six months of contracting can be the toughest, and it is here that some contractors through in the towel, thinking the contractor lifestyle is not for them. We’ve put together this six-month survival guide to help you successfully make it through the initial stages of contracting.

To get more advice download our ‘Free guide to contracting’

Find a good agent

Love them or loathe them, recruitment agents are an essential part of finding contracts. Most clients prefer to hire contractors through an agency as it makes their lives easier. That’s because agents manage the hassle of advertising the role, interviewing and checking references of candidates.

If you’re a first-time contractor, it is worth taking your time to find a good agent who understands how contracting works and who is experienced in your area of specialism. The best place to start is asking friends, family and colleagues if they can recommend a proactive agent.

LinkedIn is also a valuable source of information. You can ask your connections to recommend an agent who they have a good relationship with.

Engage with an experienced accountant

When you become an independent contractor, another crucial step is finding an accountant that is experienced in working with contractors. The process of contracting is relatively simple, but it is the step up and the on-going management of working as a contractor that takes time. An experienced accountant can manage most of this for you thus reducing the time you have to spend on handling your accounts and tax affairs.

We’ve been helping contractors to work as tax efficiently as possible for over 20 years. If you would like to arrange a no obligation chat with one of our Directors, give us a call on 01962 867550.

Build your personal brand

A major obstacle you will have to overcome when being self-employed is selling yourself. We understand that talking about yourself may not come naturally to most. In fact, most of us dread it, but when you are self-employed it is a big part of building your client base and also your brand.

As mentioned earlier, most contractors find work through agencies, but it is also possible to find work with a client directly. It is essential that you present yourself in a professional light and make it easy for the client to see your skills and experience. Outside of having an up to date CV, LinkedIn is a fantastic platform to showcase your skillset and to also brag about companies you’ve worked for previously. If you want to take it further, you can easily (and cheaply) create a portfolio of your experience and skills using a web platform like Wix or WordPress.

Understand in the ins and outs of your contract

 

For all contractors, the contract is a very important document. Not only will it detail important information about your place of work and day rates it can also impact on your IR35 status.

If you are new to contracting and are not familiar with IR35, or the ‘Intermediaries Legislation’ as it is also known, you can find out more in our article, IR35 Advice for Contractors.   

In a nutshell, if your contract places you as working inside IR35, you will be treated as an employee and taxed at source. Before signing a contract, it is best to get the contract reviewed by a professional who will advise you on the best cause of action. We offer this service as part of our monthly accounting packages. Click here to find out further details.