In the last couple of years we have seen a shift in the recruitment process in that a lot of companies now favour daily rate contractors as opposed to taking on permanent staff. However, when approaching the prospect of contracting with candidates, this is sometimes treated as a dirty word and dismissed right away. That is before hearing what it entails and how easy it is to set up.
What’s in it for me!? Contracting commands a much higher rate than the salary equivalent. The contract length is shorter, therefore enabling you to gain experience working on a variety of different projects. You can also pick and choose the projects that appeal most to you while it alsogives you the flexibility to change working environments on a regular basis. All training or up-skilling that you do is chosen by you and is also tax deductible. You are not under any restraints when it comes to holidays and can opt to take an extended break between contracts should you wish.
What’s the catch…? There are some drawbacks. Working as a daily rate contractor you only get paid for the days you work, so you are not covered for holidays and sick days. You are responsible for tax payments and making sure they are all up-to-date. You must also keep track of spending in order to prepare your VAT returns. In-house training is usually not provided for contractors so the onus is on you to up-skill and keep up-to-date with new and developing technologies within your field.
How do I get started? Once you have decided to go down the contracting route you will need to set up as an independent limited company. You can do this by going under an umbrella company or by setting up your own limited company with the help of an accountant.
Vantage Resources are partnered with a number of specialist contracting service companies who can do the hard work for you. With the umbrella option, the contractor does not need to set up as a new limited company. The contracting services company will assign you to a pre-established company. They will then look after all administration for you including Invoicing, tax returns, book keeping etc. With this option there is no start up or exit fees. The set up process under an umbrella company can be done on the spot. This option is favoured by those with a lower daily rate or people who intend on contracting for a once off assignment. The second option is setting up your own limited company under your own chosen name. This can be done by registering with the Companies Registration Office (CRO). You will require the assistance of an Accountant or Solicitor to do this. The company must prepare annual accounts to be lodged with the CRO. Failure to supply these on time can result in the company being fined. The set up for this option can take up to two weeks. This option is suitable for long-term contractors and those who command a high daily rate. You will also need an accountant to look after invoicing etc. The cost for administering a limited company account is approximately €2000 per year.
Still not sure? No problem. As one of Ireland leading IT Recruitment Companies, Vantage Resources has the experience and expert knowledge to help you start your career as an IT contractor. Why not call our office today on 01 2952850 and speak to one of our recruitment team who can help you choose the right option for your next career move or you can send your CV to email@example.com and one of our consultants will get back to you.
Posted by: Claire Griffin, Resourcer
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