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<\/figure>\n<\/div>\n\n\nIf you\u2019re an IT professional thinking of jacking in your perm job, you’re probably wondering – is IT contracting worth it? <\/p>\n\n\n\n
Now\u2019s actually a good time to go for it. The market for IT contractors is pretty buoyant.<\/p>\n\n\n\n
In fact, IT recruitment consultants, Bristow Holland<\/a>, say demand\u2019s increased to the point where it\u2019s outstripping supply.<\/p>\n\n\n\n But while you can earn a packet, there are pros and cons to contracting. So, before you take the plunge, here’s a few things to think about.<\/p>\n\n\n\n <\/p>\n\n\n\n Permanent, employed staff work for a company on an ongoing basis.<\/p>\n\n\n\n As a contractor, a firm will hire you for a fixed term. And while contracts are usually for six months, shorter or longer ones aren\u2019t uncommon. It\u2019ll depend on the project.<\/p>\n\n\n\n It\u2019s not unheard of, either, for a company to keep renewing your contract. Know what you’re talking about? Good at getting on with people? You could end up under contract to the same firm for several years.<\/p>\n\n\n\n The word \u2018freelancer\u2019 is used a lot at the moment. It seems to be an umbrella term for any kind of independent worker. But don’t confuse it with contracting. There\u2019s a key difference between the two terms. And that’s the number of clients.<\/p>\n\n\n\n Contractors work for one client, the firm they\u2019re contracted to. And that\u2019s usually at the company\u2019s offices.<\/p>\n\n\n\n Freelancers tend to work remotely, and for more than one client at time. They\u2019re hired on an ad-hoc basis, or just for one task.<\/p>\n\n\n\n <\/p>\n\n\n\n The main issue with perm work is the ceiling on what you can earn.<\/p>\n\n\n\n Contracting can be really well paid. A specialist role in London, for example, currently commands a day rate of between \u00a3700-\u00a31,200.<\/p>\n\n\n\n But these are the higher-end contracts. And if you don\u2019t live in London, you\u2019ll have to travel there and back each day. Or rent a place during the week. Costs you\u2019ll need to factor in, because they\u2019ll eat into your earnings.<\/p>\n\n\n\n It\u2019s also worth bearing in mind that if you have to commute weekly, long-term, it could put a strain on your relationships<\/a>.<\/p>\n\n\n\n <\/p>\n\n\n\n As a contractor, you don\u2019t get the same perks as employees either. That means no sick pay, holiday pay, pension payments or healthcare packages.<\/p>\n\n\n\n So, you\u2019ll need to factor in insurance to protect your income and health coverage, to your earnings. And sort out your own pension plan.<\/p>\n\n\n\n <\/p>\n\n\n\n One of the joys of contracting is the flexibility it offers. You get to choose who you work for. And the kind of work you do.<\/p>\n\n\n\n And unlike traditional employees, you\u2019re not limited to a certain number of days holiday a year. So, if a contract ends and you want to take a month or two off, you can.<\/p>\n\n\n\n The thing is, when you\u2019re between contracts, you don\u2019t get paid.<\/p>\n\n\n\n Brad Koehler, who was a contractor for several years, explains the impact this can have:<\/p>\n\n\n\n \u2018Before we had children, my wife and I took a month off in China and Japan. It was amazing. But expensive, obviously. And while we were booking it, at the back of my mind, I was thinking, it\u2019s not just the cost of the holiday, I\u2019m not going to be working that month either. So I\u2019m not being paid.\u2019<\/p>\n\n\n\n <\/p>\n\n\n\n In fact, one of the main reasons Brad stopped contracting not long after that, was because he felt he\u2019d got too focussed on the money.<\/p>\n\n\n\n \u2018I was always thinking, this month I\u2019ve got to earn this much because I want to take these days off. It may sound a bit cheesy, but as I\u2019ve got older, and started a family, I\u2019ve started to value my time more than the money I\u2019m making\u2019.<\/p>\n\n\n\n Brad\u2019s IT career\u2019s run the full gamut. He started off as a junior developer in a digital agency, went freelance for a while, and then set up a co-operative with other developers. Several years\u2019 contracting followed that, and he\u2019s now back in full-time employment, as an in-house developer for a private company.<\/p>\n\n\n\n But contracting is something he says he\u2019ll probably go back to. \u2018If contracting fits your schedule and your life at the time, it\u2019s definitely worth doing. It\u2019s a really interesting way to work for your career\u2019.<\/p>\n\n\n\n <\/p>\n\n\n\n As an employee, you\u2019ll generally work on one product. Or a small suite of products. As a contractor, you work on lots of different projects. So you get a real breadth of experience.<\/p>\n\n\n\n And because you\u2019re regularly thrown into different office environments and meeting new people, you don\u2019t get stale, either.<\/p>\n\n\n\n <\/p>\n\n\n\n One of the biggest downsides to being a contractor is the uncertainty. Not knowing where the next contract’s coming from. And when.<\/p>\n\n\n\n It\u2019s also like having three jobs. Finding the work. Doing it. And keeping up with your admin. It can be stressful<\/a>.<\/p>\n\n\n\n Say you\u2019re employed on a 3-month contract. 2 months in the client tells you there\u2019s no chance of extension once the 3 months are up.<\/p>\n\n\n\n That last month, you\u2019ve got your \u2018day job\u2019 to do. But you\u2019ve also got to spend time finding your next contract. And trying to stay on top of things like your accounts.<\/p>\n\n\n\n We know from our research that IT contractors work longer hours, on average, than people in full-time employment. So, if you don\u2019t like dealing with things like tax, hiring an accountant\u2019s a good idea. <\/p>\n\n\n\n Making your self-employed status crystal clear is important. Especially since the updates to IR35 in April 2020<\/a>.<\/p>\n\n\n\n <\/p>\n\n\n\n Contracting still appeal? Before you jump in, Bristow Holland<\/a> suggests you take some time to decide if you\u2019re cut out for it. Work out why you want to contract. And find out whether your skill set is in demand.<\/p>\n\n\n\n You need to be absolutely ready to take that leap, because you\u2019ll have to hand in your notice at work, with nothing to go to. The contracting market\u2019s fast-paced. Which means you have to be immediately available.<\/p>\n\n\n\n Matt Foot<\/a>, a director at Bristow Holland says: \u2018The first contract is the hardest to get. And you can\u2019t get a contract while you\u2019re employed. So the biggest risk you face, is that first step. Leaving your permanent job, so you can be in the market for contract work.\u2019<\/p>\n\n\n\n <\/p>\n\n\n\n Contractors aren\u2019t legally required to set up their own limited company. If you’re going to contract for longer than six months, though, it’s probably worth it. And it can save you some tax. <\/p>\n\n\n\n But if you\u2019re seriously thinking of going into contracting, treat it like your own business.<\/p>\n\n\n\n And because running your own business comes with risks, it\u2019s worth checking you\u2019ve got the right insurance<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" If you\u2019re an IT professional thinking of jacking in your perm job, you’re probably wondering – is IT contracting worth it? Now\u2019s actually a good time to go for it. The market for IT contractors is pretty buoyant. In fact, … Continue reading What’s the difference between contracting and being employed?<\/strong><\/h2>\n\n\n\n
Money, money, money<\/strong><\/h2>\n\n\n\n
No work perks<\/strong><\/h2>\n\n\n\n
Flexi-time<\/strong><\/h2>\n\n\n\n
Balancing act<\/strong><\/h2>\n\n\n\n
Keeping it fresh<\/strong><\/h2>\n\n\n\n
The stress factor<\/strong><\/h2>\n\n\n\n
Are you cut out for contracting?<\/b><\/h2>\n\n\n\n
Risky business<\/strong><\/h2>\n\n\n\n