Your first year as an IT Contractor – riding out the early months to success

Your first year as an IT Contractor – riding out the early months to success

Surviving your first year as an IT contractor can be challenging, but with proper preparation and guidance, you can navigate through it successfully. And with the tech market moving faster than ever, now is the perfect time to become an IT contractor, especially if you have specialist skills in data science, cybersecurity, frontend development, and change management, as your expertise is in high demand. Plus these type of contractors are amongst some of the highest paid, so it’s a lucrative industry to be in that’s only on the way up.

In this blog we look at some of the top things to consider during your first year as an IT contractor, to help you glide your way into second year success.

Do your research before you start

Before making the leap into IT contracting, gather as much information as possible about the contractor lifestyle. Speak to other contractors, colleagues, friends, or family members who have experience in contracting. You can also join contractor forums or LinkedIn groups to get insights from professionals that are already in the field. It’s really important to understand the pros and cons of contracting and ensure it aligns with your goals and preferences.

Update Your CV and connect with recruiters

Tailor your CV to highlight your skills and experience that are relevant to contracting. You can either update it yourself or hire a professional CV writer. Once your CV is ready, send it to recruitment agencies that specialise in IT contracting. LinkedIn, job boards like Indeed, and niche IT job sites can be valuable resources for finding IT contractor recruiters. Building a strong professional network is essential in securing contract opportunities.

Enlist the services of an accountant

It’s advisable to research the types of contractor accountants available, early on in your contracting career. They can assist you in setting up a Limited Company, provide guidance on tax obligations, and handle various financial responsibilities. An accountant experienced in working with contractors will be knowledgeable about aspects like annual accounts, Corporation Tax, VAT, Making Tax Digital, and IR35. They can help you optimise your tax efficiency and ensure compliance with relevant regulations.

Gaps in between your contracts

From time to time it’s normal for contractors to experience gaps in between their contracts. When this happens you’ll want to have a ‘war chest’ (a reserve of funds) put aside to financially see you through to your next gig. It’s worth considering how much you’ll need in that emergency fund to cover your essential expenses, and to manage your finances prudently to maintain a buffer for unexpected situations.

Never stop learning

The IT sector never stops developing, and it’s in your best professional interest to keep up. Ensure you give yourself some time each month to learn and develop your skills in certain areas, to increase your marketability and professional competitiveness within the workforce. One fantastic way to do so is by attending industry events (which are also great for meeting potential new clients and expanding your contracting colleague circle), webinars, workshops, and further learning to demonstrate your expertise.

Keep a close circle of contracting colleagues

Throughout your IT contracting journey, you may encounter various questions and challenges. Seek advice from professionals with experience in working with IT contractors. Consult with specialists who can provide guidance on setting up and running a limited company, tax optimisation, VAT registration, and other relevant matters.

SG Accounting are with you every step of the way!

It can be daunting taking the first leap into IT contracting, but the expert team of contractor accountants at SG are here to help you on your way. From setting up your Limited Company, to explaining your responsibilities as a director, we’ll be here to ensure you’re ready to hit the ground running with your first IT contract. Get in touch today to speak to one of our team, we can’t wait to hear from you!