Top Tips for UK Contracting
1. Skills Capability: First timers often ask themselves “Am I good enough to go contracting?”. The answer is yes, there are contracts for everyone of every skill level. Not all contractors are expert gurus in their field. The demand for contractors is driven by the needs of a flexible labour force, not by the need for gurus.
2. Type of Work: It is a common contracting myth that contractors get the tedious work to do. Contracting work is as varied and interesting as permanent work.
3. Job Search: The contractors who get the contracts are the best at knowing how to get the contracts, and not necessarily the best for the contracts. You will need to learn how to find a contract and get very good at it.
4. Sales: Don’t underestimate the importance of a professional sales approach when going contracting. This will minimise gaps between contracts, ensure you negotiate the best rates, and keep you ahead of the rest of the pack in periods of low market demand.
5. CV: A well targeted high impact CV is essential to get you noticed by agents. Make sure you target your CV directly to each contract application.
6. Interviews: This links in with sales. You are now the product. By preparing for interviews and avoiding the common interview mistakes you will increase your chances of passing an interview and securing a contract.
7. Rates: Rate are driven entirely by market demand and are either hourly or daily. If you use agents to find contracts, which is advantageous, then your rate will depend on how good you are at negotiating. You should ensure you determine your own market rate before entering the market.
8. Payment structures: You can either use an umbrella company or start your own limited company. Both are quick and easy to do, and you don’t need to do this until you have signed your first contract.
9. IR35: To maximise your revenues you will need to deal with some tax legislation known as IR35 and get your contracts reviewed by a professional lawyer.
10. Holidays / Time off: Taking time off for holidays when contracting is similar to when you are in permanent employment, except that you can take as many days as you like for as long as you like! Good planning will ensure there is no contracting downtime surrounding your holiday periods.
