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Why contractors make more money than employees
Employees make less money than contractors. It’s that simple. Taxes and the inability to deduct expenses take a terrible toll on what employees earn. Contractors don’t have these burdens.
�es the necessary steps to ensure they are outside IR35 . The cost to the company is the same. The contra� �this way, the reality is, that if you manage your contracting career and keep yourself in work, the rewards are�
Category:
Articles: First timers
| Mon, 21 Aug 2017
Opting out should increase IT contractors pay packets
Top end IT contractors can achieve even higher rates by opting out of the recently implemented Conduct of Employment Agencies and Employment Business Regulations.
�y, in order for contractors to help protect their IR35-exempt status. "IT contractors should resist the� �, contractors cannot actually opt out of existing contracts as at 6 July 2004. Roback advises that, given the� �nificant majority either had or were proposing to contract out when a suitable assignment was offered. Under�
Category:
News
| Tue, 03 Aug 2004
Contractor Doctor: Do I have rights if my contract’s terminated because I’m pregnant?
Limited company contractors terminated due to pregnancy can sue for discrimination, but there’s a tax sting in the tail.
�aken into account when awarding compensation. The IR35 sting in the tail However, although the contracto� �ractor Doctor I am an IT contractor and typically contract direct with clients through my own limited compan�
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Articles: Contractor Doctor Q+A
| Thu, 01 May 2014
Contractor doctor: can expenses be claimed for entertainment?
Answers a question from a reader about the rules for claiming entertainment expenses.
�ractor is a genuine business outside the scope of IR35 with the costs of marketing that every business h� �Dear Contractor Doctor, I’m fairly new to the contracting game and have incorporated a new limited company� �I am trying to secure my first interim management contract by working all of my business contacts developed�
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Articles: Contractor Doctor Q+A
| Thu, 19 Apr 2012
Please Boris, don’t torch the UK’s flexible workforce
PM Boris Johnson stands of the verge of torching the UK’s flexible workforce, causing irreversible damage to business and the economy in the process.
�ity alone increases the cost of hiring an ‘inside IR35’ contractor by 14.3%. Even more so when you bear� �of whom have cash reserves to fund time away from contracting and are happy to do so for numerous reasons, incl� �is to assess engagements and offer ‘outside IR35’ contracts where fit – to be a viable option. This stems fro� �ontractors for the same outlay is to reduce their contract rates by 25%. Inevitably, contractors are voting�
Category:
News
| Mon, 24 Feb 2020
Negotiations with contractors - guide for firms hiring contractors
Contractor negotiations are usually handled by the agent. But, if a client does deal direct, understanding contractor negotiations is key.
�ser who is a specialist in contractor affairs and IR35 . It is quite normal for the contractor to ask fo� �when hiring direct When the client is hiring and contracting direct with the contractor, they are responsible� �awyer, as they are the service provider. Once the contracts have been finalised the contractor will send the� �kely to cover rates and any specific terms in the contract the client or contractor would like to be include�
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Articles: Hiring Contractors
| Mon, 25 Jan 2010
Contractor Interview: Networking, hot skills & a strong CV keep contracts coming
Financial IT veteran Peter Pilgrim minimises time spent ‘on the bench’ through networking hard, keeping his skills current and having a ‘killer CV’.
�He has always traded via an umbrella company, so IR35 has never been an issue for him, but Pilgrim admi� �is role was made redundant, he took the leap into contracting, first landing a Java developer contract role at� �CV Despite the fact that typically over 85% of IT contracts in the UK come via agencies, Pilgrim has secured� �T contractors can maximise the time they spend in contract by building and managing a strong network, invest�
Category:
News
| Mon, 29 Jul 2013
Contractor interview: enjoying business and lifestyle change
Contractor Craig Rider has successfully made the transition from single client agency work to multiple client small business. Yes, Craig is making a bit more money now, but the real advantage is a flexible lifestyle.
�ourself as clearly different as possible to avoid IR35 .'' [Ed: See our recent feature ' Contractors ust� �explains, ''but the large company that the IT was contracted out to began making what I thought were some very� �nd Rider is very happy about making the switch to contracting. ''I worked for a big organisation as an employee� �that financial pressure didn't force him into bad contracts. One of the real advantages of contracting is the�
Category:
News
| Thu, 29 Nov 2007
Successful contracting requires mindset change, believes business analyst contractor
Successful contractors must develop a contracting mindset that is distinct from that of a permie, says financial IT business analyst Eleanor Miller.
�project, and you simply have to manage them too.” IR35 is always an issue but so far it has never been a� �Contractors need to develop a contracting mindset that is distinct from that of a permanent� �s approach has led to her winning a succession of contracts since she took the leap into contracting in 2010.� �another job and continue being unhappy, or find a contract.” Eleanor warns that employees on long notice per�
Category:
News
| Thu, 27 Nov 2014
Contractor tax reliefs under Office of Tax Simplification spotlight
The Office of Tax Simplification has published a list of over 1000 tax reliefs it plans to review, including many used by contractors to reduce tax.
�business taxation that includes an assessment of IR35 , has no powers to repeal tax legislation, but wi� �w Committee . The committees’ memberships include contracting sector representatives – PCG Chairman Chris Bryce�
Category:
News
| Wed, 10 Nov 2010
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