Resources and Tips

Working as a contractor means you will not be directly employed by a client. Instead, you will work on specific engagements, each for a fixed duration through a contract for services. Except in cases where your contract is deemed to be inside IR35 (subject to UK off-payroll working rules), you will need to establish a limited liability company known as a personal service company (PSC) through which you will contract.

Once you are set with your limited company the next step would be to get in touch with a leading-edge recruitment firm such as NU Concept Solutions who can help to find you a suitable contract role.

Further information on setting up a limited liability company in England and Wales can be found here www.gov.uk/set-up-limited-company.

As with any job, there is no guarantee of how long you will be working.  However, contracts are for a fixed duration and usually set in months which means that towards the end of the contract term you will either need to secure a contract extension or look for another contract.  It is not uncommon to have short periods without work in between contracts and you should be prepared for this before you make the leap into contracting.

Having said that, contracting can be very rewarding from a number of perspectives.  Aside from securing higher fees and potential tax benefits, contracting generally allows candidates to work on a wider variety of projects and gain experience with state-of-the-art technology.  

When you work as a contractor, you’ll have the confidence of knowing that you’re gaining new experiences in a variety of industries and becoming a more and more valuable asset.

At the end of the day, in order to make the leap into contracting, you need to have confidence in your capability, courage, awareness of the contracting market and a very positive outlook!

In a nutshell, IR35 refers to UK government legislation which was introduced to target contractors working through a personal service company (PSC) who were subject to the same employment relationships and restrictions as permanent employees and who were therefore, according to HMRC, “disguised employees”. The rules are explained on the UK government website https://www.gov.uk/guidance/understanding-off-payroll-working-ir35.

If the IR35 off-payroll rules apply to your contract then you will be treated as an employee for taxation purposes and you will need to be payrolled (i.e. subjected to PAYE deductions) for the duration of your contract.

The current legislation requires clients, both public and private sector clients, to determine whether the IR35 off-payroll rules will apply on a contract-by-contract basis.

As a result, you must be given an SDS (Status Determination Statement) before the start of any contract.

In the current market, there is a mix of “Inside IR35” and “Outside IR35” contracts and so you may end up doing some Inside IR35 and some Outside IR35 roles or you may decide to stick with Outside IR35 roles only: the choice is yours.

Either way, all candidates are welcome to speak to our fully trained recruitment consultants who can help further.  We can also put you in touch with a compliant payrolling company if your contract is deemed inside IR35.

Should your contract be deemed inside IR35 you will still benefit from working as a contractor in terms of variety of your project experience, enhancing and expanding your skillset and exposure to leading-edge applications.

There are also well-established organisations whose mission is to help and support contractors navigate the legislation and to offer protection against future HMRC tax claims https://www.qdoscontractor.com/ir35/full-ir35-contract-review.

Your interview is your opportunity to showcase your skills and to sell yourself as an expert in your field to potential clients and employers.  Let them know why you are the best candidate for the job.

Our latest interview tips are available on our blogsite at https://nuconcept.solutions/news-and-insights/how-to-ace-your-tech-interview-five-expert-tips-for-success

The demand for IT skillsets and job roles varies from year to year but what is clear is that there is a significant shortage of contemporary skills required for digital transformations in the UK and this shortage is likely to continue for the foreseeable future.  There has never been a better time to work as an IT specialist!

Candidates with experience in cloud-based technologies such as ERP, Cloud infrastructure, and cybersecurity, and in AI, data science and big data analytics are particularly in high demand at present and you can afford to be choosy about which roles you go for.

Speak to one of our recruitment consultants at NU Concept Solutions for the latest on jobs in high-demand.