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Looking to take the next step in your career?
If you have found yourself discovering you’re in a situation where you are going to look to start or make a move into contracting, whether it be because you want more flexibility, you have fallen on a redundancy, or you are wanting to be involved with new and exciting projects. Whatever your reason may be, the move is not easy, so today we will provide you with some information on what to expect, and how to make the move as stress free as possible.
It can be a daunting move but contracting comes with huge benefits, and often after the move is made contractors never make a return to the permanent job market. There is the huge benefit of being part of an exciting project, you go into a business knowing what the end goal is, and after achieving that goal (hopefully successfully) there is often a huge sense of accomplishment. Working on a variety of different projects on short term contracts, for many, is a much more exciting way of working and something contractors often much prefer to what they would get when in a permanent position.
As a starting point when going interim you will need to make a decision and decide on whether you should set up your own Limited Company or register with an Umbrella Company, although to many this seems like a daunting process, it can be relatively straight forward. If you are going to set up your own Limited Company this involves a few simple steps/processes which includes registering with Companies House. Each Limited Company must have at least one Director, this individual is an employee of the company, and with this comes responsibilities such as paying National Insurance Contributions and income tax.
When setting up a Limited Company it is essential to consider the ‘Intermediaries’ Legislation’ which is frequently referred to as IR35. This legislation ensures that you pay roughly the same in National Insurance and in income tax, as if you had been employed directly through the employer. If the IR35 is ignored, there can be penalties that can be imposed by the likes of HMRC. However further guidance can be provided by your accountant, and plenty of practical advice can be found online. Something you should always ensure as a starting point is that any contract you enter into is IR35 compliant whether it be via an agency or with the hiring employer.
For more information on setting up your own limited company and around IR35, visit: http://www.contractoruk.com/first_timers/setting_up_your_contractor_company.html
Not only do you need to think about how you will be paid, but there are also a number of other considerations to take into account when embarking on your first contract. When you start your contract it is essential to be prepared to ‘hit the ground running’ as unlike a permanent role, you are less likely to get support in training, and your impact on the business will be expected to be seen as early as possible. This isn’t something to be scared of, but it is important to maintain your skill set. If you go into an interim role you need to be prepared for this, you should feel confident and excited about the move you’ve made into contracting.
If you would like to have a chat around making the move from permanent to interim, please feel free to get in touch with Value Match for a confidential discussion on how we can help you.
For any advice on making the move contact our team.