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Making the most of Contracting

We've all heard the stories — IT Contractors who earn a small fortune, work two days a week and live in the South of France. The truth is much more down to earth; contracting is hard work and requires real flexibility but if you take the right approach, you could achieve the right balance as a successful Contractor.

The advantages are obvious. You become your own boss, You manage your time, work on a great variety of projects and, potentially, make more money. But is contracting for you? Good Contractors are:

• Adaptable — ready to work in different working conditions & cultures.
• Self starters — with plenty of get up and go.
• Approachable — you need to be able to work with a wide range of people.
• Networkers — with sound industry intelligence and the ability to build relationships
• Diplomatic — with the understanding of when to offer advice and when to shut up
• Trustworthy — reliable people get all the best projects

Getting Started

In essence you have two options. You either need to set up a Limited Company or work through an Umbrella Limited Company. The only way to choose which is the best route for you is to familiarise yourself with IR35 and seek professional advice.

Briefly, by setting up as a Limited Company, you can gain tax and NI benefits as a temporary worker. Unfortunately the government doesn't like this and has introduced IR35 legislation. This enables the Inland Revenue to decide that a person working through a Limited Company is really an employee who should be paying standard PAYE and National Insurance. The Director(s) may then face a claim for unpaid taxation.

• To learn more about IR35, please visit www.inlandrevenue.gov.uk/ir35
• You'll find general contracting information at www.pcgroup.org.uk
• When you need to set up a Limited Company, please contact our partners TLP at www.tennantland.co.uk

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