Most people who are looking to move into the contract market tend to be leaving a current permanent role. We have found that the earning potential is a key motivator behind this move. As an example, in 2014, the average permanent salary across the UK is £43,500, the average contract rate is £355 per day.
In order for most employees to earn in excess of £70,000 per year, this would mean moving into a Senior Management role – a contract role equivalent to a less senior permanent position, could see this happen without having any additional management responsibility.
There are obviously many perceived advantages of moving into the contract market:
- Being your own boss
- Tax saving
- Flexible holidays
- Job variation and exposure to a wider technology set
- Meeting new people through various assignments
However, the move can also comes with some disadvantages, all of which, at VIQU, we recommend you consider prior to making your first move into contracting:
- Lack of job security
- No holiday or sick pay
- Increased administration
- Staying away from home
- Lack of training
When you are one step closer to stepping into the contract market , you will need to look at either utilising an Umbrella Company, setting up your own Limited Company, or operating as a PAYE employee. Our VIQU team are well versed in these areas, and are also available to discuss other keys topics you may need to consider, such as IR35, Insurance Policies, and EAA preferences.
As a team at VIQU, we take the welfare and aftercare of our contractors very seriously. Therefore, we have chosen to partner with a market leading service provider in the UK IT contracting market – PayStream, a specialist in Umbrella Company solutions, setting up and the running of Limited Companies, and also advising if PAYE is the best way forward. Please get in contact with the VIQU team and we can point you to our dedicated Account Manager at PayStream who can go through these details with you, and decide on the most appropriate option for YOU.
We are here to help discuss all contract options available to you, and your next career move. We will go through benefits and risks, and provide honest advice and guidance on whether a move into the contract market will suit you and your personal circumstances.
To discuss ‘first time contracting’, or any aspect of the IT contract market, please call the VIQU team on 0121 227 8200. You can also say hello on VIQU Chat, or contact us here.