Contractor FAQs
Frequently Asked Questions (FAQs)
What is contract recruitment?
Contracting has become very popular over the past few years. Despite this however some professionals are still weary of jumping into contract work.
For companies contract recruitment is a great solution to resolve temporary and flexible staffing needs, as well as manage project workloads. For contractors, it allows them to earn more, have variety of work and work across many companies and industries.
Contracts are commonly signed with independent workers and last a set period of time, e.g., a few weeks or months. After the end of the contract, the contractor has no further obligations to the employer and vice versa.
What’s the difference between permanent and contract employment?
Permanent employees are entitled to unique benefits, such as a salary, holidays, pension support and termination pay. These kinds of benefits aren't available for contract workers, however, as a contractor you have the flexibility of choice and potential to earn a higher rate. When companies need to grow teams or handle sensitive information regularly or build team identities permanent employment is the preferred option.
Contracting is usually viewed as a more flexible approach for super niche areas or specialist skill-sets, which suits certain professionals. Contractors help organisations; solve workforce shortages, manage project work, or replace key positions for short time periods. Contracting allows you to earn a higher rate than a permanent role with the skills and experience you have on offer, it also enables you to be more flexible, and have a greater variety of work.
Do you have any information about IR35?
We absolutely do, you can view all our IR35 resources by visiting our IR35 Hub page. This will give you access to a host of information and resources, including guides, events and recordings that will help you understand the private sector reform.
If you have any specific questions around IR35, do not hesitate to use the contact form on that page.
How can I operate as a contractor?
As a Contractor with us, you’ll have the choice of two contract methods:
1. Enter into an agreement with one of our approved 'umbrella companies'.
2. Set yourself up as a UK limited company and ensure you’re listed as the Director and are in sole financial control of the company.
Who will be my point of contact?
When you work with us we make sure to appoint a dedicated and experienced consultant to you throughout the whole process from start to finish.
Our consultants are specialists in specific niche markets so have the right experience and market knowledge to guide you through and find you the right fit for you both professionally and personally.
What insurance do I need?
We know that it’s important to have protection in place. That’s why we have partnered with Kingsbridge who specialise in contractor insurance.
Can you work out how much tax I owe?
We are not able to do this on your behalf. We strongly advise you to speak to your accountant regarding this query.
Can I change my LTD Company during a contract?
Yes, contractors are free to change their LTD company during a contract. You will need to fill in a compliance confirmation form/pdf and send it back to us.
Please reach out to your consultant to start this process.
Can you offer contract extentions?
Our consultants start speaking to managers 6-8 weeks before the contract end date to see if there is an option to extend. If there is our consultant will reach out to you on this matter when the time comes and talk you through the process.
Why do I have to use one of your Umbrella Company Partners?
We understand the importance of ensuring that there is a compliant supply chain in place. Being part of a PLC it’s hugely important for us to ensure that we provide you with the security and knowledge that everything relating to payment processing will be handled compliantly with respectable and with accredited suppliers. Thus, mitigating any risk from the supply chain.
We have operated a compliant supply chain for many years. Every 2 years we start the tender process to assess existing partners and speak with any new suppliers interested in partnering with us.
Do I need to raise an invoice?
If you are operating under an Umbrella company:
No. Umbrella Company contractors just need to enter in the timesheets and ensure they are approved. The Umbrella Company raises an invoice on your behalf.
If you are operating as a Ltd Company:
Yes. Because if you don’t raise an invoice your payment terms won’t start.
Can I change my notice period?
If you want to change your notice period to a shorter time, this needs to be agreed by both parties (the client and you the contractor).
Speak to your consultant if you wish to do this.