So, you’ve got your first contract you are going to be busy, so look for a Managed Service Company (Umbrella) provider that requires minimal input from you. A few well-structured companies do not require formal mileage logs, subsistence claims, and formal expenses claims etc from you. This will free up your time for more billable hours/training/leisure pursuits. Again this is another significant advantage that Managed Service Companies can offer a contractor and it is worth digging around to find the well-structured ones such as Maxim Finance Limited.
They simply need you to provide.
- Time sheets and any expenses authorised by the client on a weekly basis
- Receipts for accommodation (nights away from home)/subsistence
Contracting is a way of life and the chances are you will not be disappointed. So, what will be different from your previous permanent role? That first morning it may well feel like everything is different but to keep it in perspective, most companies are used to contractors, so you should’t have a problem with others resenting your high rates and freedom.
At the same time, it’s best to keep your rate to yourself and avoid these conversations, as mentioned earlier, it is not uncommon for two contractors doing the same job side by side to be on different rates, let alone the additional salary you are commanding over your permanent salaried colleagues.
One cautionary note - however as you earn significantly more money than your previous permanent role provided - you may be tempted to spend, spend, spend. That’s great - enjoy it, you have earned it! However, if you are operating through your Private Limited Company ensure you have enough put aside to pay your tax bills.
Getting on with the job:
The best advice is just “get on with the job” As you consistently perform your role fully and well, keeping your employer happy, remember you are the boss! So the days of long hours (most of which were unpaid) to gain a promotion are over. It is now up to you take control of your career, by being flexible and learning new skills and experiencing new roles you will make yourself more marketable, without having to pay attention to the usual office politics, point scoring or social climbing.
It is also likely you’ll meet many more people as a contractor - the average contract length is around nine months, although they tend to be 3 month revolving contracts with the chance to meet a fresh bunch of people each time. You will also gain a wider variety of industry/project experience than the average permanent employee. Having said that, some contractors stay on the same project for many years - it’s completely up to you.
Refresh Your Skills:
Try to keep your skills relevant and up to date. The more enlightened employers are willing to send contractors on training courses alongside their permanent colleagues, so put yourself forward for training if you can justify it to your employer (this includes both on & off site training packages). If not, it is worth investing in training courses to keep up to date with technology changes, or using the increasing number of free Internet and CBT-based training.
IT training in particular has an abundance of companies offering free or subsidised packages and the cost may be tax deductible. (See Maxim Finance Limited footnote*)
Always remember that you are now a professional who has entered into a contract to provide your services to a client. This is a legal and binding contract on both parties so do not be tempted to just walk out whenever you get a “better offer”, or should you realise its not for you. Negotiate your exit.
Finally, if at the end of the day you realise contracting is not right for you, you should not have a problem finding another permanent role as the latest surveys are predicting a skills shortage once again.
*Maxim Finance Limited also provide subsidised training.
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