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Our Contractor Division works across all the technology and strategic sectors of the business supplying temporary, contract and interim flexible staffing solutions. This covers Aerospace and Defence, Automotive, Technology, Electronics and Real Time Embedded Software, HR, Sales and Marketing. For further details on the technical areas see our markets
To search for contract vacancies click here
Want to find out what your take home pay will be as a Limited Company Contractor
CONTRACTOR CARE PROGRAMME
CONTRACTOR OR PERMANENT
The decision to continue in permanent employment or become an independent contractor is one of choice and most contractors take this decision because of some or all of the following factors.
- More money. Most contractors will earn at least twice what the equivalent permanent salary is. This is a powerful incentive but remember that you will not be paid for time off if sick, holidays, in between contracts and you will not receive any pension or health care benefits.
- Variety of work and Independence. To a certain extent you can move between contracts at fairly short time intervals so that you can be exposed to a large number of technologies and techniques without your CV looking like a job hopper.
- Travel and different locations. You may choose contracting to work overseas or in another part of the UK.
- Taking extended holidays when it suites you.
DISADVANTAGES
- You will have to keep records for your accountant and the Inland Revenue
- Budgeting your extra income so that you have money saved for paying your tax and when you are in-between contracts.
- Security of employment, you will not be covered by normal employment laws because you are a director of your own company.
PAYE or LIMITED COMPANY
PAYE
Working through an Agency as a PAYE Contractor, for most people is not the best option. In essence the agency will deduct tax and NI contributions and may give some form of holiday pay but you will not receive all the other benefits that you would have expected as a PAYE in a permanent role.
LIMITED COMPANY
Working through a Limited Company either one that you have set up yourself or via a third party provider is the most common route. This gives you the best options for maximising your income.
Sources of information can be found at:
filetravel.net - Alternative to setting up your own limited company
itsupport.com - First Time contractor tips
companieshouse.gov.uk - Companies House
pcg.org.uk - Professional Contractors Group.
inlandrevenue. gov.uk - Inland Revenue .
News on IR35
LANDMARK VICTORY OVER IR35 - A BREAK FOR CONSULTANTS
A consultant has won a landmark battle with the Inland Revenue over its infamous IR35 ruling. Under IR35, the Revenue seeks to claim that private contractors are employed by the company they carry out work for, and must pay National Insurance on contract fees. Issues of substitution and control were apparently key factors in the case, in which the Revenue sought to show that Roger Tilbury was a disguised employee of his end client, the Ford Motor Company. His contract was actually with Compuware, to which Ford had outsourced its application management centre. In his judgment, Stephen Oliver, QC, pointed out that Tilbury Consulting Limited had the right to send a substitute, though he had never exercised this; that it was not part of Ford's function to tell Tilbury how to do the work; and that Tilbury had a different colour pass from the Ford employee pass which did not entitle him to use of the gym. He concluded that Roger Tilbury could not have been regarded as Ford's employee because:
* Ford did not have operational control over how the project was undertaken;
* There was the right of substitution between Compuware and Ford, and between Tilbury Consulting and Compuware;
* Roger Tilbury was not part of Ford's business or undertaking.
The Professional Contractors Group (PCG) supported Roger Tilbury throughout the case. PCG chairman Simon Griffiths says: 'We are very pleased with the judgment. This significant case re-establishes the core principles of defining an employment relationship based upon the actual contract and the facts, rather than trying to imply employment. 'Furthermore, it recognises a substitution clause as being inconsistent with employment, despite never having been exercised.'
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