IT Contractors and Freelancers
Are you an IT contractor or thinking about becoming an IT contractor?
IT contractors and freelancers are high in demand, as their specialist skills are highly sought after and recruiters and clients all over the UK are constantly looking to fill in skills gaps with flexible IT professionals. This means IT contractors and freelancers have the potential to negotiate for higher rates of pay than ever before depending on how high in-demand their skills are.
IT and technology firms everywhere are moving to increase their cyber security and gain a competitive edge in the industry, so being an IT contractor in this environment could offer you a rewarding and fulfilling career, and help you further develop your skills and experience as an IT professional.
There is a wide variety of IT contract roles available, including IT Support, JAVA Developer, Test Analyst, and Technical Architect, to name a few.
If you are thinking of becoming an IT contractor or have already done so, you may find you need support of your own to help you with invoicing your clients or agency, managing your payroll, completing tax returns, filing your end of year accounts, and more.
What accounting options are available to IT contractors?
When you become an IT contractor, there are a few options you have to pay yourself as you won't be on your client's payroll.
Two initial options you have to operate as a contractor include being a sole trader or working on your agency's payroll. However, here are the more popular payroll options for IT contractors, and the benefits of each:
Limited Company:
- Higher take home pay - the most tax efficient option
- More control and flexibility over your finances
- Limited liability - you are not personally liable for losses
Umbrella Company:
- Quick and easy set-up
- Low fees (but a lower take home pay)
- No IR35 legislation risk
Maximise Your Take Home Pay
Want to discover how much you could take home as an IT contractor working through an umbrella company or a limited company? Enter and submit your details below to get an initial look, and provide us with your telephone number so we can give you a more personalised calculation based on your unique circumstances.
How can you benefit from our accounting service?
We offer a streamlined and bespoke contractor accounting service that allows you to focus on your contract work without having to worry about using even more software than you already have to on the job.
We take away the stress and burden of paperwork and number crunching by doing the following:
- Setting you up with our service and no cost and helping you register for a business bank account and other required items such as VAT and PAYE
- Providing you with 24/7 access to our newly improved Client Web Portal which is mobile-responsive and more user-friendly than ever
- Providing you with real-time information on your business finances so you always know where you stand
- Giving you unlimited tax advice and support to help you maximise your take home pay
- Taking care of your quarterly and annual statutory accounts filing and regularly advising you when tax payments are due
Contact us on 01707 871622 for a more in-depth explanation of our processes and service offering.
What are the benefits of becoming an IT contractor?
Increased earning potential: because the skills of contractors and freelancers are in high-demand, this gives you negotiating power when it comes to your rates, meaning you have an increased earning potential over a permanent employee. Furthermore, working through your own limited company can give you the highest take home pay level of up to 80%.
Flexibility: contracting allows you to choose when and where you work, giving you more flexibility in your career. You also aren't restricted to working traditional 9 to 5 hours, which can increase your free time. More professionals than ever see flexible working as a factor of high importance in their careers.
Professional development: When you choose to be a contractor or freelancer, you are giving yourself the opportunity to further develop your skills and abilities as an IT professional. You can work on a variety of different projects for different clients and organisations, allowing you to accumulate a higher level of skills and knowledge.
For more information, give our specialist consultants a call on 01707 871 610 or email enquiry@churchill-knight.co.uk . Alternatively you can either request a call back or a calculation below.
