10 woes from the world of IT contracting

Because contracting does have its darker side…

Less Security

Contractors are not covered by the same employment law rules that apply to permanent employees


You will be running your own business alongside the work you are doing as a contractor. Remember to find time each week for the paper work. Remember no invoice equals no payment and untidy tax returns can result in high tax bills.

Erratic Income

You are usually paid a daily rate which is higher than a permanent employee. Remember you are paid for services, so there is normally a payment terms clause in your contact which could be 30 days or more after submitting your invoice for the previous months work.

Gaps in earnings

If you have not lined up another contact for when the current one ends, you have to be able to cope without an income


Many contractors do not understand the cost associated with running their own limited company. You need insurance to cover Employer Liability Insurance, Professional Indemnity and Public Liability insurance. Our Xpert guide will help – http://www.xperianrecruitment.com/insuranceregulations/

Falling foul of HMRC

IR35 – make sure you understand this and make sure your contract with the agency or company is IR35 compliant. For more information regarding IR35 compliance please read our Xpert Guide – http://www.xperianrecruitment.com/ir35summarised/

Tax Returns

Never leave it to the last minute and make sure you put money aside each time you get paid

Not keeping pace with technology

If you are employed for your technology skills its vital to keep up with industry changes. There are lots of online courses or training sessions that will help. Also attend industry events, these are also a good way of networking with other contractors.

Forgetting you’ll need a holiday

Everyone needs a holiday, even contractors, so make sure you factor in time off. If you are in contract when you take a holiday, you will need to make sure your client is covered during this time.

Recruitment agencies

Many contractors find their contract roles via an agency, so be clear on your daily rate. It’s good to be flexible, but ensure that you are getting paid correctly. If the agency agrees to £450 per day, make sure this is what you get. Some agencies charge an admin fee, this is wrong, the agency make their fee from the margin or mark-up that they charge the client. They can’t have two pieces of the pie!

Xperian Recruitment have years of experience sourcing and managing contractors. We work with our clients and our contractors to ensure everyone gets a fair deal. We do not levy large margins or mark-ups. We work within client budgets and ensure that the contractor receives the right rate for the contract. We also work hard to ensure that our contractors are paid correctly and on time.

If you are looking for your next contract or are searching for contractors please call 01634 202 101 or visit www.xperianrecruitment.com

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