We work with the very best Contractors and Professional Interims in the business and as a specialist recruitment agency, we're not bound to a single industry. Whether you're looking to build a portfolio or complete a project, we can help.
Are you an experienced consultant, contractor or Interim? Or are you considering a move beyond permanent job opportunities and moving into something more flexible? It is well documented that contracting and temporary employment can be both lucrative, but potentially risk-laden. It is worth taking the time to consider the various types of roles available and how they differ. To assist in your search for contract or interim employment we have gathered the following information.
What is a Contractor?
Contractors are typically paid on a pro-rata basis through a firm’s payroll. This can be on a fixed-term basis, or on a rolling contract, and companies use contractors in a number of different scenarios. Often this is during busy periods or to cover special projects, but contracts can also be used to assess an individual’s suitability for a more permanent role.
Normally, if a contractor is not part of another company or set of companies, the contractor is viewed as self-employed and would be expected to look after their own tax and National Insurance contributions (NICs). In this scenario, the contractor might not be entitled to the same rights as permanent workers but the recruiter is still responsible for their health and safety. If the contractor is a part of another company or set of companies, then whereas temps are usually paid by the hour without the perks of their permanent counterparts, contractors will often have the same benefits and holiday entitlement as permanent employees.
The terms of a contractor’s employment normally strictly adhere closely to the following rules:
- The contract lasts for a certain length of time.
- The contract is set in advance.
- The contract ends when the assigned event/project is completed.
If a project overruns, conditions of that should be stated in the terms of the contract and as a contractor, you’ll be able to enjoy the flexibility and breadth of new experiences that contract jobs offer. Contractors can experience a variety of job roles within the private and public sectors, and the pay is significantly more than non-contract jobs.
A contractor’s CV is their most valuable tool and when it comes to listing your contracting jobs be sure to list the name of the company that you worked for - not the contracting agency. This allows you to stand out in a competitive market and it also gives the recruiter a much better insight into the culture and size of the businesses that you once worked for. However, be prepared to have explanations for why you left your previous roles.
When approaching your CV, it pays to create a contract-specific version and a summary will serve as a great introduction point to showcase the experience gained from all your contracting jobs.
Working via an umbrella company
An umbrella company acts as your employer, and you will work through a contract of employment with that umbrella company. Rather than Change paying you directly, The ONE Group can pay the umbrella company, who in turn, will then pay you. Dependent on the nature of the work, you may be eligible to reclaim certain expenses applicable to your contract (as advised by the umbrella company) that will reduce your tax obligation.
Working via a limited company
For certain assignments, as advised by your professional advisor, working through a private limited company may be appropriate. Details can be found at Limited Company Formation. If you set up a limited company you will have certain legal obligations. Your professional advisor will advise you of these and further details can be found at Running a Limited Company. IR35 UK tax legislation is designed to ensure appropriate rates and levels of taxation and National Insurance are applied to work carried out. Details can be found at: Tax IR35.