According to a recent study, IT contractors are dealing with lengthier freelance jobs that pay less instead of freelance work that pays more. Studies by the umbrella company Giant demonstrate that temporary IT workers are prioritising lengthy contracts that have a lower wage in comparison with simple contracts that have a higher rate.
The investigation found that 66% of those questioned would reject a higher paid job in preference of a less profitable engagement and therefore this suggests that job security is essential during this uncertain climate. Only 34% accepted they would select a better-paying contract and the vast majority report that duration is now being deemed more essential than wage. For those who have picked work that has a reduced salary, work out what you should end up taking home with a take-home- pay calculator. And if you require any advice in terms of IR35 law and regulations, your accountancy firm should be able to help.
Extra findings reveal that less IT contractors are cutting back time without work. The research discovered 80% of IT freelancers spent 31 days or less in between contractors compared with 78% from the same time a year before. Furthermore, the retail sector increased its use of IT skills as it changes and channels investment into m-commerce systems. And 17% of the IT contractors surveyed work in the telecoms sector that is a 43% increase from the same time in 2011.
If you are doing increasingly more work with one client, make sure keep things distinct since you could become in danger of becoming too involved and attached with the firm. And because of the recent alterations in IR35 legislation, you have to be careful to stand alone as a professional and not be thought as an employee. If you’re taking on agreements that are longer with the same business, speak to an IR35 accountant right now to learn what it really means for your taxes.
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