Pro Killer CV

Some reports say an average recruiter looks about 750 CVs to generate 250 phone calls, to get 150 conversations, to put forward 15 CVs, to gain three interviews, to finally place one candidate.

CV is the most important thing in contract world for the candidates, some industry platforms led by LinkedIn arguing that CV will be outdated soon, but that won’t happen in the contract market for the next few decades or so. The CV is the ultimate gateway for your next contract. LinkedIn is great for advertising and building contacts but the CV is the selling book of yourself.

You need to have an extremely professional, well balanced and customised/ tailored CV even to get a call from a recruiter. Getting that first call and shortlisting your CV with other thousands of CVs is the first hurdle. So, how do you do it? Below are the key points:

The Pro CV format

Contractor CV should be structured to the following format,

Profile
Skills
Core Competencies
Major Achievements
Key Certifications
Employment Records
Technical Summary
Educational Qualifications
Industry Certifications
Professional Affiliations

Tailor/ Customise your CV

Make sure you tailor your CV and always stick to your knitting and don't make the CV too generic in order to appeal and market to a huge audience.

Try to tailor your CV as much as possible by focusing on the Job Description. Analyse and investigate the job post first and make sure the skills and experiences required are evident on the first page of your CV. Put all your key strengths (brag list) on the first page but make sure it is attractive and not boring to read.

As part of customisation of the CV, you need to make sure you include a profile for each of your CV. This should be short, clear and elaborated to tell that you are the exact person they are looking for and the role is ideal for your experience and skills.

Show you are a driver NOT a passenger

Employers hire contractors to drive projects and look for problem solvers who can express the delivery of their projects. Emphasise your problem-solving skills and experience, give 5-7 short examples and scenarios.

Give your priority for experience, not qualifications. Employers look for experienced contractors and they don’t care if you have three masters and a Ph.D. or a portfolio of certifications. They need experience people who can deliver tasks quickly and efficiently.

Please refer Pro Contract Jobs A-Z Strategy for Contractors section for further details.

What are your USPs (Unique Selling Points)

List your unique selling points on the first page in a bullet from. Be honest and accurate about the information and do not afraid to brag about your achievements.

Please refer Pro Contract Jobs Tips for getting noticed as Contractor section for further details.

Stick to Knitting

Always stick to knitting and never try and trade up your skills. As an example, “Project Manager now looking for a Programme Manager position”. It will never work in the contract market. Contracting is filling a gap for a certain piece of work/ project/ programme so why they hire you as a Programme Manager when there are other hundred thousand well-experienced programme managers out there. If that’s what you are looking for there is always the permie route.

Keywords

Is it all about Keywords, Keywords and more Keywords? The answer is yes, but only the RELEVANT keywords you have skilled and experienced.

Make sure you have relevant Keywords in your CV (related to the job advertisement). Some agencies or companies use certain software applications to scan keywords to select your CV. They will certainly do a “control F”. Make sure you don’t save your CV in non-searchable formats and don’t include any tables or pictures.
So 2 ways to achieve this,

List all your relevant Keywords bellow your roles.
Have a magic table with experiences.

Create an experience table with keywords

We wouldn’t recommend this if you have just ventured into the contract world. This is an ideal tool ideally if you have at least 10 years of experience. Make sure your table is focused on your role and not loaded with many technical jargons.

Use bullet points

Avoid paragraphs and use bullet short sentences, and a single typeface. Make it crystal clear with your writing and avoid big jargons as recruiters would like to feel that they are speaking to another human been.

Where to put your qualifications

Golden rule: “Education gets you your first job. Experience gets you the second”

List your educational qualifications at the last (last page of your CV) don’t try to elaborate your qualifications. The name of the qualifications and the year you completed would suffice. Don’t include your GCSEs, just focus on your professional qualifications.

Length of your CV

Contracting CVs can be lengthy with the years of experience but do NOT exceed more than 5 pages. 3-4 pages are the ideal. It’s OK to use IT jargons but be careful, recruiters are not technical and not everyone hiring are IT professionals.

No Matter how technical you make sure you include your business skills as well (management, Leadership, entrepreneurial and commutations skills).

Your CV must be human-readable. Make sure all the skills for each job are listed in full and in their regular and irregular mnemonics, as most of the contractors, you are applying through agencies so you need to makes sure your CV comes up at the top when you agent does the “Control F”.

CV Profile/ Summary

Have a personal summary with 5 lines to elaborate who you are and what you good at. Bullet point at least 3-5 key achievements for each role (what you have delivered for that organisation successfully).

Stay in your sector

If you have years of experience in the financial sector, stay in that sector. You are better off getting a finical sector contract other than one in Gas and Oil sector.

Please refer A-Z Strategy/ Roadmap for Contractors section for further details.

LinkedIn factor

Add your LinkedIn profile link to the top of the CV. LinkedIn is a fabulous tool for contractors with great a review/ recommendations system. Having many recommendations to your profile will show that you are a reliable and a top candidate for the role.

Final thoughts

When writing the CV, check spelling, check grammar and use a common font such as Arial, Times, Calibri and keep it continuous throughout. Steer away from including a photo of yourself in the CV.

The objective of the contracting is hiring people who can hit the ground running from the first day. They are not going to pay you a higher rate if you don’t have the relevant experience and skills. It’s all about the what you can do for the client and not the other way around. Good Luck!

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Pro Contract Jobs Pro Killer CV
Pro Contract Jobs Pro Killer Interview
Pro Contract Jobs Why you should take a Contract over Permanent work
Pro Contract Jobs Highly Paid Contracts
Pro Contract Jobs Tips for Getting Noticed as a Contractor
Pro Contract Jobs Tips for Staying Motivated as a Contractor
Pro Contract Jobs Working from Home or Remote as a Contractor
Pro Contract Jobs A-Z Strategy/ Roadmap for Contractors
Pro Contract Jobs A-Z Guide to Contract Rate Negotiation
Pro Contract Jobs A-Z Tax Guide for Contractors
Pro Contract Jobs A-Z Guide to Limited vs Umbrella
Pro Contract Jobs A-Z Insurance Guide

Recruiters/ Employers/ HMs (Hiring Managers)

Pro Contract Jobs Why you should Hire a Contractor
Pro Contract Jobs Hiring Tips for HMs (Hiring Managers)
Pro Contract Jobs Hiring Tips for Employers
Pro Contract Jobs Hiring Tips for Start-Ups
Pro Contract Jobs Tips to Starting a Recruitment Agency
Pro Contract Jobs Pros & Cons of FTCs (Fixed Term Contracts)

Pro Killer Interviews

Contract interview is generally one stage or maximum 2 stage process (1 x Telephone interview + 1 x Face to Face interview). Permanent interviews can take weeks, sometimes months and can take up to 3 months to land a job. Contracting is all about hitting the ground running from day one whereas with permanent jobs you have that honeymoon period to get babysit by mostly by another permanent employee.

Interview Preparation

Make sure you prepare for the interview comprehensively. Do the research about the company and role, what you can bring into the organisation etc… All your interviews will focus on whether you can hit the ground running from the first day. Are you a driver or a passenger? You need to strategies yourself more towards a problem solver. They also look for your experiences in different situations and for specialised skills.

During the interview

During the interview try to be a problem solver, ask why they are hiring, what are their requirements? Be proactive and try to close the deal. Follow up if you did not get an answer during the interview. Send a direct LinkedIn request for the interviewer(s).

Interview Techniques

Contractors are hired to solve problems so make sure you demonstrate an appreciation of their problems and needs.
Explain how you going to resolve their issues (just a few high-level explanations).
Demonstrate that you have dealt with these types of issues/ problems in your previous roles. Give some examples and scenarios. (Use the STAR - Situation, Task, Action, Result methodology).
Show your passion and motivation for the role. Explain how you going to fill their gap.

How to structure the interview

Discuss about the company.
Discuss their requirements (problem/ issues).
Sell your solution.
Close.

Discuss their targets and goals for this role

If you are interviewing for a project/ programme role, discuss what the ultimate goal is and what they are trying to achieve.

Ask questions all thought the interview

Ask only relevant questions to their problem (ie ask about the major challenges they are having, as about the current team, and who are the major stakeholders of the projects/ programmes are etc..)

DOs during the Contractor Interview

Prepare, Prepare and Prepare for the interview.
Practice what you are going to say.
Show your passion, hungriness and enthusiasm!
The more interviews you attend more experience you going to get.
Arrive about 15mnts early (if it is a bridge/ conference, dial 10 mnts before the interview).
Wear a formal dress, take a notebook and your laptop.
Show a presentation or one of your past work using your laptop.
Whiteboard a solution or methodology you have experienced with.
Research and study about the organisation and role.
Read the job spec.
Investigate the interviewer through LinkedIn, are they technical or a big picture guy.
If you going to be late, call the reception and pass a message to the interviewer.
Try to be direct as much as possible with your answers and questions.
Use Real world scenarios answering questions.
Memorise your brag list.
Sleep well during the night before the interview.
Switch off mobile phones.
Try to be a pleasant and enjoyable person.
Smile and be polite.
Firm handshake.
Good eye contact throughout the interview.
First immersion counts.
Relax and be confident.
Ask questions during the interview, do not wait until they ask "Do you have any questions for us?". Keep a good conversation going.
Prepare 3-5 Real world scenarios.
Practice for competency based interview and answers.
Take notes during the interview.
Be positive and motivated.
Read and memorise your CV.
Be genuine and cool.

DON'Ts during the Contractor Interview

Do not ask about the rate as this is between you and the agency (unless it is a direct contract with the employer).
Do not bad mouth previous managers and companies
Do not give too short or irrelevant answers.
Do not interrupt your interviewer.
Do not sit until invited.
Do not show your desperation for the interview.
Do not be the “yes” guy for their all problems and questions.

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Get Noticed as a Contractor

How do you stay in the game as a contractor? Below are the key points,

Master your core skills. (Stick to knitting principle). Please refer Pro Contract Jobs A-Z Strategy/ Roadmap for Contractors section for further details.
Learn communication and leadership and entrepreneurial skills.
Killer CV - Write a high impact targeted CV. Please refer Pro Contract Jobs Pro Killer CV section for further details.
Killer Interview - Learn great interview techniques. Please refer Pro Contract Jobs Pro Killer Interview section for further details.
Learn some sales, marketing and negotiation techniques and stay ahead.
Research your rate and negotiate well. Please refer Pro Contract Jobs A-Z Guide to Contract Rate Negotiation section for further details.
Be honest and nice to your clients, colleagues, suppliers, vendors and anyone who come across during your journey of contracting.
Get inspired, motivated and look for contacts that keep your stay motivated (You can find these contents in books, audiobooks and YouTube). Refer Pro Contract Jobs Get Motivate as a Contractor sections.
Set up a business phone number, business card and a website.
Network, network, network. Set up a well-maintained LinkedIn account and start collecting endorsements and recommendations.
Get the word out that you are looking for a contract work in your specialised area of business.
Find a mentor who contracted for more than 10 years. (well-seasoned contractor can share few tips to motivate yourself).
Share your CV and LinkedIn Profile with agencies and employers.
Be tenacious with the agencies. apply and call them daily.
Stay up-to-date with modern technologies and industry trends.
Get Memberships and professional accreditation.
Be responsive. Provide added value and always under promise and over deliver.
Build yourself a reputation by asking for feedbacks and recommendations from clients and agencies.
Have a marketing strategy for yourself.
Strive to improve yourself daily, set goals and post them somewhere you can see them. Please refer Pro Contract Jobs Tips for Staying Motivated as a Contractor section for further details.

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Contractor Roadmap/ A-Z Strategy for Contractors

Contracting is all about clients buying your skills and experience for short term for a higher rate. They don’t have an objective to develop you, train you or babysit you. You are joining the team to shed a light and drive their solutions.

Why you should consider Contracting?

Better rate than permanent roles.
Experience, Challenge and Job Satisfaction.
Improve the skills and experience by working with different originations and projects.
Easy to change jobs.
Better tax savings.

Are you ready to be a self-starter, and be willing to take on a degree of risk with far better financial rewards? Contracting is all about providing your skills and experience to a daily/ hourly rate. You need to make sure you understand the market, the opportunities and the growth in your sector.

There are few stages to secure a contract. Firstly, you need to have a clear strategy for finding contracts. Finding a contract job is very different than to a permanent job search where as you can take all the time to prepare, interview and play with your notice period.

There are few options to jumpstart your contract career.

Directly apply to an employer.
Through an Agent/ Recruitment agency.
Through a Job board like Pro Contract Jobs.
Through social media tools like LinkedIn.
Personal recommendations.

Directly apply to an employer

You don’t have to go through an agency if you can find a role directly. But the challenge is finding that opportunity directly with an employer. Below are few avenues,

Some organisations directly advertise their contracts through job boards like Pro Contract Jobs.
Word of mouth.
Your contacts.
Checkout IT-related forums and online press adverts.
Analyse where the Gaps are and talk to companies directly.
Reach out to companies directly (most companies don’t like it to be advertised and to be known that they are using contractors as it reduces their recruiting brand).

Recruitment Agencies

This is the primary channel of finding contract jobs, more than 75% employers use agencies to find contractors with greater skills and experience.
Basics:

Register with Agencies.
Set up job alerts.
Build you contacts.
Job Boards like Pro Contract Jobs. will provide the most comprehensive contract ports with thousands of live contracts.

Call recruiters and follow up your applications within the same day of submitting your profile.

Apply through a Job board like Pro Contract Jobs

Contract job market is fast phased so you should apply frequently (twice a day at least) for fresh contract roles. Call the agencies that you already have made applications. Pick up the phone and start dialling in the morning and afternoon. Focus on chasing contracts that are more recently advertised.

Also, be aware that some agencies/ employers will post the same position on different job boards. Pro Contract Jobs is a great place to start.

This is what Pro Contract Jobs offer for Candidates/ Contract Seekers.

Access to the largest pool of contracting opportunities on the market.
Contract only job board built by contractors for contractors. With decades of contract experience, we know the pain every contractor go through.
Direct employer contracts and agency postings.
Apply to multiple contracts through our Job Basket features.
We have partnered with world-renowned job sites and recruitment applications to provide the global coverage.
Add free content.
The latest opportunities at your fingertips.
Easy to navigate and flexible search options.
We empower candidates with career advice and resources.
A transparent platform that complies with the highest ethical standards.
Easy navigation through categories and locations.
We have a large pool of agencies and employers using Pro Contract Jobs to find professionals like you.
Working from home/ remote opportunities, High-end contract jobs paying 1K+ daily rates, London-based contracts along with thousands of EU and worldwide contracting opportunities.
If this is your first venture into the new world of contracting, our Pro Guides, Contractor Tips/ A-Z Guides, Blogs and FAQs are a great place to start.
You can upload your CV to the largest CV libraries in the world, apply for contracts, set up email alerts and manage your applications.
Easy and straight forward keyword searches (Search jobs by location, rates of pay and industry).
Advanced filtering options to target contracts to your skillset and experience.
There are plenty of contracts to consider from public sector to investment banking.

Contractor basics to hold your ground

Pro Killer Interview

Contract interview is general a 1 stage or maximum 2 stages process (1 x Telephone interview + 1 x Face to Face interview). Permanent interviews can take weeks and sometimes months and can take up to 3 months to land a job. Contracting is all about hitting the ground running from day one whereas with permanent jobs you have that honeymoon period to get babysit mostly by another permanent employee.

Make sure you prepare for the interview comprehensively. Do the research about the company and the role, what you can bring to the organisation. All your interviews will focus on whether you can hit the ground running from the first day. Are you a driver or a passenger? You need to strategies yourself more towards a problem solver. They also look for your experience in different situations and also look for specialised skills.

During the interview try to be a problem solver. ask why they are hiring, what are their requirements? Also be proactive and try to close the deal. Follow up if you didn't get an answer during the interview. Send a direct LinkedIn request for the interviewer(s).

Please refer Pro Contract Jobs Pro Killer Interview section for further details.

Pro Killer CV

Please refer our Pro Killer CV section on how to prepare a CV that guarantees calls from recruiters. Few points to remember

Keep it short and relevant.
Tailor/ Customise/ Target your CV for each role.
Make sure your facts are accurate.
Have a summary page with Career highlights or a Cover letter.
Applying through a job board like Pro Contract Jobs.

Please refer Pro Contract Jobs Pro Killer CV section for further details.

Determine your Target Rate

Determine your target rate and try not be pushy about the rate during the initial conversations with the Agency or Employer. Your leverage to negotiate a rate is high when you have an offer.

Pro Contract Jobs A-Z Guide to Contract Rate Negotiation

Present yourself

Make sure you dress in a manner appropriate to the site. Courteous and be nice to clients, stakeholders, suppliers and the third parties.

First Week

The first week of your contract is vital as you meet all your major stakeholders, customers, vendors, suppliers and third parties for the first time. Make your first impression counts.

You should be able to hit the ground running without any guidance or training.
Contracting gives you the freedom to move from project to project, accumulating a variety of transferable skills and an understanding of different processes within different companies.

Keep in mind that you need to adapt yourself to different projects/ programmes and find ways to solve problems before the ship sinks. Employers mostly hire contractors when they are stuck with problems and they expect you to guide them to the victory. You should focus on quick wins to save the sinking ship.

You also should be a self-motivated and well organised with the ability to make new working relationships easily.

Think about Certifications

Key Certifications has the edge over mere experience. You might be a well-seasoned contractor with 25 + years of experience but you also need to be skilled and certified with relevant bodies so go out and certify yourself with latest certifications (relevant to your field). You need to have few to improve clients.

Should I improve my Skills Portfolio?

Contracting is all about sticking to your knitting but it’s always good to have few other experiences as well. For an Example if you are Cisco Firewall Engineer, it’s nice to have other Firewall exposure as well, ie juniper, checkpoint Fortinet etc... You obviously need to be a pro/ master of one technology and may be 2-3 other skills in your bag and this can be helpful if you are going play a role as a troubleshooter in a multi-product environment.

Develop a Website that provides information about your services.

This can be old fashioned with current social media trends but a website is a great tool to list your delivery experience, project/ programme details, endorsements and also good for IR35. Participate in writing guest blog posts or articles for other websites in the industry. Read industry journals and magazines and get memberships in professional bodies.

Keeping up to date

Make sure you keep in touch with the latest changes in technology. For an example, if you are a Networking Engineer, make sure you take relevant courses (usually you need to renew these exams typically every 3 years) and keep up to date with technology.

Social Media/ Online Networking

Unsurprisingly, LinkedIn is very widely used within the industry. Have your killer LinkedIn Profile.

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Why you should take a Contract over Permanent work

Contractors enjoy a greater earning power compared to permanent staff but there are also pros and cons you need to consider if you want to move from a permie job to contracting.

Pros of Contracting

Contracting pays more than the permanent market, particularly for the premium skills in demand.
More tax savings.
You are your own boss.
Greater experience with wide variety of projects and programmes.
You become a problem solver.
International Opportunities.
Opportunities in building your own network
More flexibility and freedom (able to change jobs quickly).
Longer holiday breaks between contracts.
Flexible working hours.
Working from home/ remote.
Overtime.
Constant changing environment.
personal projects not governed by an employer.
Potentially less stress.
You're responsible for your own learning.
Gain focus.
Lack of corporate politics.
Building your business network.

Cons of Contracting

Fear/ Job security (short notice period).
The hassle of administration (maintaining your account).
You are responsible for you Tax.
Applying process.
No benefits (sick pay).
No Insurance.

The demand for contract workers continues to rise as companies look for skills and experienced individuals to fill their critical demands.

Key reasons why you should contract over a permie job.

Failed bonus promises, promotions and unpaid overtime.
Lack of motivation, challenges and career progestin.
Lack of training and employers not investing on employees.
Corporate politics.
More taxes on your pay.
No flexibility in working hours.

Initial transition or the 'jump' is the hardest bit, particularly if you have debt. Few points to consider before you dive in from permie to contracting.

Master your core skills. For an example, if you are a Network Engineer, don’t try to learn all possible available networking skill but focus on 5-6 technologies and master them and that should be your KSP (Key Selling Point).
Secure a contract before you give the notice to you permie employer. This can be challenging as permie notice periods can be weeks and sometimes up to 3 months. Having an offer on hand gives you the confident to take that first leap.
If you are giving notice and thinking of finding a contract after resigning your permie job, make sure you are finically secure for at least 12 months as this gives much confident in your contract hunt.
Make sure there is a demand for your set of skills. Search the job boards like Pro Contract Jobs to see if there are any contracts for your skillset out there.
Read all Pro Contract Jobs Pro Guides and A-Z Guides in contracting.
Certify yourself before you take the leap (look for our Pro Courses section)
DON’T use your permie CV to apply for contracting. Please refer Pro Contract Jobs Pro Killer CV section for further details.
If you are taking a leap from permie to contracting, look for at least 6 months or 12 months contract.
Forget about the benefits, you are not going to get any benefits as your permie job. You need to take care of these and there are thousands of insurance companies and pension providers with many creative products to suit your needs
Don’t expect any career training or babysitting when you take your new contract. You should be able to hit the ground running from day 1.
It can be less free time with contracting as you value free time over money. (no more 4 weeks breaks during contracts).
Believe in your skills and master them/ polish them.
You may need to take more risks than your permanent role (learn about risk management strategies).
You are going to be involved with less meetings, chit chatting and more focus on delivery.
You need to speed up delivering tasks than in your last permie role.
You need to have great relationships with powerful people throughout the organisation, suppliers, stakeholders, third parties and vendors.
Have an entrepreneur mindset rather than the permie thinking.

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Highly Paid Contracts

Contractors who generally based in South East can earn minimum 3 times the average of UK wage. The highest earners are in Central London and the City of London where nearly 20,000 contractors have average earnings of around £120,000 each per year. London and the South East flourishing environments for contractors seeking highly paid specialist work in a variety of sectors particularly in financial and professional services but also in IT, pharmaceuticals, creative and infrastructure.

Contractors with unique skills can now earn more than £1,500 per day for their services, according to research by contractor support providers Von Essen. The highest paid UK-based roles are group finance director positions, with a typical daily rate of £1,750.

Highest paid IT contractor roles in the UK

* Source – Contractor UK Website

Which IT skills are currently in demand the most?

* Source – Contractor UK Website

Emerging IT Contracting Skills

* Source – Contractor UK Website

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Tips for Staying Motivated as a Contractor

Remember why you became a contractor in the first place. You have obviously looked at the options of pros and cons of contract.
Take some holidays and spend time with your family. As a well-motivated and driven contractor, it is really important that you take time off and enjoy your free time and this will help to start fresh.
Set some goals,
- How much money you want to earn this year.
- How many contract jobs you would like to apply per week/ month/ year.
- How many interviews you going to attend this week/ month/ year.
- How many offers you going to get this year.
- The number of new people you would like to meet.
- How many different clients you would like to work for.
- The different countries you would like to visit on holidays.
- The number of long weekends you would like to take.
- How many recommendations and endorsements you going to earn/ achieve this year.
Write down your goals and keep them in a place where you will always see them. Revisit your goals regularly and keep them updated.
Consider using a hot desk to meet new people.
Plan for the day by creating a hit list.
Reward yourself once you completed a key deliverable and a major task.
Don’t isolate yourself, network with many contractors as much as possible and LinkedIn is a great tool.
Go out with other contractors and be socialise.
Start collecting endorsements and recommendations and these will remind you of key pieces of projects you have delivered.
Start reading materials related to your expertise (polished skills mean, you have more confidence to face the next challenge).
Look for help from outside resources and have a mentor.

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Working From Home or Remote as a Contractor

You should consider going contracting if you want to work from home (WFH) or a remote Location (WFR). The number of Britons working from home have escalated since 1998 by 18 percent annually, according to the Department of Trade and Industry (DTI).

Contractors are independent enough to work from any location on the planet. Contracting is delivery focused and when you have a team of delivery focus individuals they delivery from wherever they are based. WFH also can be more efficient than being on site.

The research shows that people who work from home tend to be more relax, more organised and more self-confident because of being their own boss.

It seems that developing a trusting relationship is crucial to ambitions of home working and one reason why companies hesitate to offer home working in job adverts. But clients may consider the option later. From a client's perspective, it's not just trusting that's important.

Advantages of employees working from home.

Access to a huge range of applicants.
Better staff motivation.
Greater cost savings (Office Space and other pieces of equipment).
Better work/ life balance.
Improved employee retention.
Efficiency and productivity gains (You can get more done if you WFH).
Improves employee satisfaction.
Reduces unscheduled absences.
Expands the talent pool.
No more wasted meetings.

Disadvantages of employees working from home.

There is always a challenge when it comes staff m monitoring (if you are a micromanager this is not the option for you and your staff).
Some risks in confidentiality.
Communication problems.

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A-Z Guide to Contract Rate Negotiation

Below are top tips to help contractors negotiate and secure that elusive premium,

How to negotiate a rate when you are on a contract?

Have an exit strategy

You need to make a decision and prepare yourself if the client doesn’t give you a contract rate. (decide whether to stay or go).

Research the market

Make sure you research what the market is offering for your skills and experience so you can quote references points when negotiating. Always produce some evidence why you deserve a rate hike. Pro Contract Jobs is a great place to understand the current market rates (refer our rate analysis sections).

Please refer Pro Contract Jobs Highly Paid Contracts section for further details.

Make a business case

Present the case by email. Justify how your workload has increased. There is also a chance that if you certify yourself with a series of certifications. Always be professional and thankful even if you don’t get the hike.

Always approach the agency first as they have a sound idea of the climate of the client and also the greater experience in market rates.

Keep it sweet and professional with the agency and always get your agency to negotiate a rate. Also, remember that the agency has the option of adjusting the rate even is the client says no. Don’t burn any bridges with the client or the agency as you may need them in the future.

Supply & Demand

There is always a chance if you are an exceptional contractor and have a great relationship with your line management and major stakeholders of the business. So try to establish that from the beginning of your contract. It’s all about creating a value.

Have a game plan

Learn and polish your negotiation skills and some bargain points you can put forward,

The client cannot deliver this circuital piece of work without you.
You will consider leaving if you don’t pay me more.
Market rate has increased during the last.
You have another contract lined up.
You can decrease your agency commission to bring the rate high.

Understand what agency charging as a commission

An agency will typically have a markup on your rate by anything from a minimum of 12% to up to 20%. Many large firms have fixed margin agreements with their agencies of between 15% and 20%. But some smaller agencies can take a commission up to 50%.

Please refer Pro Contract Jobs Highly Paid Contracts section for further details.

How to negotiate the rate for a new role

It’s all about timing

Understand what’s the market rate for your skills and experience. The best time to negotiate a rate is once you have an offer on the table. The agent will do anything to get your signature on the paper, including discussing a rate with the client and also reducing their margin.

Understand your worth

Don’t state your current rate. If you go too high you risk putting yourself out of competition. Never discuss rate at an interview, unless it is a direct contract.

Understand what others worth

List your uniqueness (what extra skills and experiences you have compared to other candidates).

Research the market

Assess your value and keep up to date with the fluctuating industry rates. Make sure you research what market is paying is for your skills and experience so you can quote references points when negotiating. Always produce some evidence for why you deserve a better rate. Pro Contract Jobs is a great place to understand the current market rates.

Please refer Pro Contract Jobs Highly Paid Contracts section for further details.

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A-Z Tax Guide for Contractors

If you need advice on tax-related issues we recommend you speak to an accountant. There is advice available on the internet but it is always best to speak to an expert. Below are the bare bones of what you need to know.

Limited Company Tax

When considering limited company tax, we recommend you to think of the company as one entity and you an employee and director of the company, as a separate entity. It makes it a rather easier to understand.

Corporation Tax

All companies must pay corporations tax on their annual profits. Corporation Tax rates vary between 0% and 30%. Corporation tax is currently set for 20% (2015/16 tax year) for small businesses generate profit up to £300,000 annually. Each year you or your accountant should complete your Corporation Tax return (Form CT600) and submit it online.

If you fall inside the IR35, then you pay a ‘deemed salary’ of the company’s annual profits.

VAT

You must register for VAT if your annual turnover is £83,000 or more (2016/17 tax year). VAT is 20%. You charge this on your invoices and then give the money to the HM Revenue and Customs. VAT can be applied in 2 ways as the standard VAT scheme, or the Flat Rate scheme. The decision should be based on the expenses and if you don’t expect to reclaim large amounts of expenses, you are better off by registering to Flat Rate Scheme.

Contractors usually register for the Flat Rate VAT Scheme. This is where you charge 20% but then only repay at a lower rate. IT contractors usually use 14.5% (plus you get a first years discount of 1% so will just pay back at 13.5%), with this being paid on the total gross invoice value and you keeping the difference. Unfortunately, this is seen as the profit which means it is taxed along with your corporation tax.

Make sure you or your accountant submit your VAT return to the HMRC each quarter, together with an electronic payment.

Income Tax/ Self-Assessment

You need to make sure you are registered for self-assessment (self-assessment tax return (SATR) whether you are a company director or an umbrella contractor who has additional income to declare. You (not your account or umbrella company) have the ultimate responsibility of returning your tax return each year. HMRC will normally send a letter reminding your tax return and don’t assume that if you don’t get a reminder from HMRC that you are out of the scope.

The complexity comes when you are getting paid twice by your company: i.e. owners dividends and employee’s salary. Income tax is taken across the ‘Fiscal tax year’: 6th April to 5th April. It relates to your personal worldwide income. Any income taken as salary beyond your personal tax allowance (£10,000) is taxed at 20% and then after the higher rate threshold (£41,865) will be taxed at 40% and then 45% after £150,000.

If you are earning more than £100,000 annually, your personal allowance will be reduced at a rate of £1 for every £2 of income until it is reduced to zero. By the time you hit £120,000 your personal allowance will have disappeared, this effectively means that the £20,000 after £100k has been taxed at 60%.

Special note for dividends - Up to the higher rate threshold (£41,865), the dividends aren’t subject to PAYE Income Tax or National Insurance. Anything taken above this will be subject to 25% higher rate dividend tax on the net dividend drawn.
You must submit your tax return by 31st January each year together with the payment. You may also have to make two payments on account (31st Jan and 31st July) towards the current year’s tax liability.

Employee's National Insurance Contribution

Firstly, there is no NI on dividends. You will just pay NI on salary which is 12% on anything you earn above £153 per week until you reach £805 per week and then you will pay just 2%. PAYE Income tax/NI, along with VAT, payable quarterly and your accountant will be able to advise you of these crucial dates.

Employer's National Insurance Contributions

Your Company will pay 13.8% on any salary you pay for yourself over the threshold of £153 per week. If you work through an umbrella company you will have to pay employee NI of 12% and employers NI of 13.8%, this means you have to pay 25.8% on your entire pay less expenses and threshold allowances.

Dividend Tax

Dividends are taxed at three rates during the 2015/16 tax year – 10%, 32.5% and 37.5% depending on the dividend you draw from the business.

IR35 Effect

IR35 is a tax law operational since 1999 and being reformed in April 2017. IR35 was introduced to tackle the problem of so-called ‘disguised employment’ (where companies use contractors through an agency, rather than a direct employment contract, so they become disguised employees.

IR35 presses a legitimate one person SME into an employee paying 25% more extra tax. There are numerous online independent IR35 tests to validate that you contract falls within IR35or not.

If you are a contractor you need to make sure that you are IR35 compliant. All of the information below can also be found on the UK Government Website along with links to get extra help and advice if you need to navigate these complex regulations. HMRC recently launched a Public Tool to determine the IR35 status of public sector contractors. In essence, there are few fundamental principles HMRC uses to determine the IR35 Status.

Ability to provide a substitute when required.
Who determine/ decide your day to day tasks.
When and where the services are provided from.
Is your business solely depending on one source of income?
Who provided the materials and machinery to perform your agreed tasks.
True nature of your business.

Who’s affected by the IR35

The IR35 is also known as ‘Intermediaries legislation’. It is a set of rules that affects your tax and National Insurance if you are contracted to work for a client through an intermediary. You may need to follow IR35 if you work for a client through an intermediary.

The intermediary can be,

Your own limited company.
A service or personal service company.
A partnership.

If the IR35 applies, then the intermediary has to operate PAYE and National Insurance contributions on any salary or wages it pays to you during the tax year. The rules are designed to make sure that the right rate of tax and National Insurance is paid for you.

The IR35 may also apply if you are working through an intermediary and you or your intermediary, or client are abroad work in the construction industry are an office-holder work with your partner or spouse are working, through an intermediary, for a charitable organisation.

The IR35 doesn’t apply if you work for a client through a Managed Service Company (MSC) or agency, for example, an employment agency. There are more detailed information about the IR35 conditions of liability in the Employment Status manual.
Find out what you need to do if the IR35 applies to you and the penalties for not following IR35 rules.

The intermediary is always responsible for complying with IR35 legislation when it applies. If you are a director of your limited company or a member of your partnership, you must make sure all relevant legislation are followed and take responsibility for deciding if it applies for each of your engagements or not.

Working out the worker/ client relationship

When you are deciding if the IR35 is applying to a contract it is important to establish what is the underlying relationship (your employment status) between you (the worker) and the client for each contract or engagement. is

There is usually a contract between your intermediary and the client, either directly or through another party such as a staffing agency, a recruitment agency or an employment business.

You have to use the facts of each contract or engagement to decide if the IR35 applies, and not any label, description, or job title.

Work out your employment status for each contract by considering what that relationship would be if there wasn’t an intermediary involved.

Do this for each individual contract, and make sure you are considering them if they change. Remember that there can be more than one agency in the chain to supply your services to a client.

Find out what you need to do if you think that the IR35 applies to you if you use your own intermediary to provide a service. If you are engaged by a client through your own intermediary, it is the client’s responsibility to consider your employment status and make sure they meet their own tax and National Insurance liabilities.

If all of the followings apply then you need to follow IR35 legislation,

You work for a client as a self-employed contractor, sole trader, freelancer, or as a consultant.
You could be considered an employee if the intermediary didn’t exist.
You pay yourself through your own limited company or partnership (sometimes it is called an ‘intermediary’ or ‘personal service company’) or you have a material interest in that company.

There are some circumstances where the client may be responsible for operating your PAYE, such as if,

The contractor working arrangement shows that you are engaged directly by the client as an office-holder or employee, then the client will be responsible for operating PAYE for you.
A client contracts directly with you - the client will always be responsible for operating PAYE for you, even if the payment for your services is made to your intermediary.

There may be penalties if the client doesn’t operate PAYE where it is needed.

Using an agency or MSC to provide a service to a client

There’s different legislation to follow if you provide services to an ‘employer’ or end client through a third-party agency or MSC.

You have to comply with agency legislation rather than the IR35 if you provide services to an ‘employer’ through a third party agency but technically, you are not a direct employee of either.

If the agency is based outside the UK the client may be liable to operate PAYE and make the appropriate deduction, returns and payments of the tax and the National Insurance contributions instead.

You need to follow MSC legislation rather than IR35 if you provide your services to end clients through an intermediary company which is controlled and run by a third party service provider.

If you work in the construction industry

Both the IR35 legislation and the Construction Industry Scheme (CIS) can apply if you are a subcontractor working in the construction industry through a limited company or partnership.

For example, this can happen if you’d be considered as an employee of the client and if there wasn’t a limited company or partnership acting as an intermediary.

To stop tax and National Insurance contributions being paid twice on the same earnings within the CIS and IR35 schemes special rules have to be applied.

IR35 if you, the intermediary, or client is abroad

The limited company or partnership is incorporated or resident abroad under IR35, when a worker living in the UK does work for a client in the UK, the intermediary is treated as having a place of business in the UK, even if it is incorporated or resident outside the UK.

If an offshore intermediary fails to deduct and account for tax and the National Insurance due under the IR35 legislation, liability to pay this can be transferred to the,

Worker
Onshore agency
End client

Action to recover employer’s National Insurance contributions not paid by an offshore intermediary could also include action against any of its assets located in the UK.

HMRC has powers to obtain details of payments to offshore intermediaries from the records of clients and agencies.

If the client is non-UK resident

Deciding if IR35 applies depends on,
The tax residence status of the worker and client.
Where the duties of the contract are carried out.

Foreign nationals

If you are a foreign national who provides your services through an intermediary you may be affected by the IR35 legislation.

How to ensure that IR35 does not apply to you

Make sure you understand the IR35 legislation and apply the best practice to ensure it does not affect to you. You should not worry if you are a genuine contractor with a true nature of a business. Below are some the best practices,

Make sure you familiarise with the IR35 legislation.
Stop acting like an employee and make sure you run as a director managing and controlling your own limited company.
Review your business by a Tax Specialist.
Do you have the authority to determine day to day tasks of your work? Client can give the ultimate overall direction but you should have the day to day control of the tasks
Ability to provide a substitute when required. Make sure you have a contract clause about using somebody other than you to perform the task your company has been contracted to do. Can you or your agency send someone else to perform your work other than you?
Take arrangements to have your office space.
When and where the services are provided from.
Make sure you are responsible for the materials and machinery to perform your agreed tasks but your client (PCs, laptops, servers, printers etc)
Make sure you perform a true business owning a clear business Structure (website, business accounts, insurances, training etc).
Is your business solely depending on one source of income? Make sure your revenue is generated from more than one source in a given 12 month period.

Consider joining The Association of Independent Professionals and the Self Employed (IPSE) who offer IR35 contract templates and support in the event of an investigation.

Limited or Umbrella? Making the Right Choice.

Setting up and running a limited company, where you become a director and shareholder, is the most tax efficient way of working and has a number of advantages.

There are a number of advantages to setting up a limited company. For a start, you control your own finances. You can claim back a wider range of expenses, ie accountancy fees, equipment and software costs. The flat rate scheme allows you keep some of the VAT you receive, which is an important consideration. It is not difficult to run your own company as long as you have the services of a good accountant.

On the other hand, there are contractors who are put off by doing the necessary paperwork, beyond producing weekly or monthly timesheets. Others only intend to contract for short periods between longer phases of permanent employment.

This leads some contractors to use the services of umbrella companies. In this instance, they enter into a contract with the umbrella company whereby they become PAYE employees again. The umbrella company then deals with their customers and takes responsibility for invoicing, paperwork, the collection of money due and payments to each contractor, and it means less tax and National Insurance deductions of course.

The simplicity of this arrangement is offset by the fact that it offers little benefit for individual contractors in terms of reducing tax liabilities, and may actually increase their costs as service fees levied by umbrella companies may reach as much as 9% of the value of the contract. It is also worth noting that many umbrella companies insist on either a minimum level of charging or a minimum time for which you must pay for their services. By comparison, accountancy fees for running a limited company are around £1,200 per year, irrespective of turnover.

Before you turn to an umbrella company there are questions you should consider.

What exactly will they charge?
Is there a minimum charge?
What tax or accountancy qualifications does their form possess?

Forming a limited company is the best way to maximise your income, allowing you to take home more than you can when dealing with an umbrella company.

Why an Accountant?

We have discussed on this site the complexities of tax status here and abroad, becoming a limited company as opposed to being part of a PAYE umbrella company and other various potholes in the road to success that must be considered and manoeuvred around when becoming a contractor.

In any form of business, it is always important that accurate and detailed records are kept. This is especially true when having any dealings with the government – be it here in the UK or abroad. You could always keep track of your own finances by doing your own books but, if you are trading as a limited company, you will need the help of an accountant.

If you approach an accountant from the planning stages of your business, rather than only when you need help filling in your tax return, you will receive valuable advice on tax intricacies, trading and preparing to trade that can only be beneficial in the long run.

Options of Correcting

Onshore PAYE contractor umbrella companies who help you with your admin burden.
Off-shore tax avoidance schemes or "tax strategies", that offer 90% of your contract value (Options are limited to these types of schemes are HMRC are shutting down these)
Use an umbrella company. (Risk of IR35).
Contractor Loan Scheme (HMRC still can challenge the scheme and ensure users pay the correct amount of tax)

Tax Liabilities

Company Liabilities

Corporation tax – payable in 9 months and 1 day after the year end.
VAT – payable quarterly.
PAYE/NI – payable quarterly.

Personal Liabilities

Personal tax (self-assessment) – payable every 31st January, with potential payments on account in January and July (sorry even this sounds complicated).

Contract outside EU - Things to consider

Working overseas for a few months won’t affect your tax status, but, if you are moving abroad permanently, or for more than three years, you will not be a UK resident from the date of departure. Which means you will no longer have to pay UK tax.

If you are planning to return often then you could still be considered a resident unless your visits are less than 183 days in any tax year or an average of 91 days per tax year over a period of four years. HMRC will also take into account a number of other factors, ie whether you are a member of any UK clubs or societies, if you own a house in the UK or if you are the director of your limited company

When it comes to the 91-day residency test, qualitative evidence will also be looked at such as whether or not you have bought property abroad. If this is seen as insufficient to suggest you are no longer a UK resident, you will be seen as a resident for tax purposes for the first three years, after which the situation will be reviewed.

If you are only a UK resident for part of a tax year it is possible your tax may be adjusted, which means you only pay on income and capital gains for the part of the year that you are living in the UK. This is known as ‘split-year treatment’. This is especially relevant if you end up having to pay tax in the country you are currently living in. All nations around the world have their own laws on residency and tax, so it is always best to take advice from a specialist in such matters from that country.

Also, remember that if you are working outside the EU you will face visa issues. This comes into play when you stay longer than 90 days, this is the usual length of a tourist visa.

It is important to remember that if you are in another country fulfilling a contract then you will be able to claim expenses from your limited company. This does not apply if you are there on holiday and decide to do some work.

Moving abroad to work

Thanks to generous Corporation Tax rates in the UK, so it may be better to keep your company registered in the UK even if you are moving abroad. There are a few things to think about though. Tax laws around the world are different and some might not actually let you contract through your company. If you are in a country that does allow it, make sure you use the services of a tax expert from the country you are working in.

Other considerations include things like still being liable for corporation tax in the UK if you have a UK company. You will still be paying National Insurance contributions to remain eligible for a UK state pension. Some countries have strict rules on who can You may not be allowed by local law to open a bank account in the local currency, so how will your clients be paying you? What is the exchange rate between the UK and the country you will be working in?

To avoid many of these complications you could use your UK limited company but also find a locally managed umbrella company. An umbrella will help you arrange your visa, work out details of sponsorship, and determine the most favourable tax package. Unfortunately, this means that you essentially become a permanent employee of the umbrella company, doing so you will lose the tax benefits of being self-employed.

If you are considering working abroad for a prolonged period, you might consider setting up another limited company in your new country of residence. You will, of course, need the services of a local accountant to sort out your taxes and you will need to handle the administration for registering and maintaining the company.

Contracting in the EU – Things to Consider

The EU has been a popular choice for contractors looking to work abroad for many years. It should be remembered, though, on 23rd June 2016 the UK voted to leave the union. It will take two years to finally negotiate Britain’s exit from the complicated rules and regulations involved in membership once Article 50 is officially triggered and nobody yet knows what regulations will be in place once separation is complete. How this will affect contractors looking to work abroad, in terms of tax and work visas, is anybody’s guess. In the meantime here are some important points to note for the most popular choices courtesy of the blog crunch.co.uk:

Working in Belgium

Tax rates in Belgium are high and you will have to pay 50% on any earnings over €37,330.
To set up a limited company in Belgium you must be a resident there and have between €6,000 and €12,000 in a Belgian bank. You must also have a university degree.
For the self-employed, a social security tax is levied at a rate of 22% on net income up to €55,405.04 and at a rate of 14.16% on income between €55,405.04 and €81,649.49. Income in excess of €81,649.49 is not subject to social security contributions and the annual maximum contribution for self-employment activities is €16,100.56.

Working in Switzerland

Switzerland is a popular choice for contractors due to its notoriously generous tax system. However, Switzerland to not being in the EU, it can be harder to find work
Despite not being part of the EU, Switzerland is still subject to the Schengen Treaty, which means as a UK citizen you will be able to travel there without a visa. You will, however, be required to apply for a work permit. EU citizens may reside in Switzerland for three months whilst looking for work
Switzerland is unusual because it is split into very small and independent areas known as cantons. This makes the tax system very complex, as each canton has its own laws and rates. Therefore, consulting a Swiss tax expert is therefore highly recommended

Working in Germany

You will need to obtain a work permit, which generally requires sponsorship from a German company. This can make it difficult for contractors, as many employers do not want to sponsor temporary workers, and you will need sponsorship from every new employer
Laws on self-employment in Germany are very strict and make the IR35 look like child’s play. Make sure you know the rules inside-out, or you could be subject to heavy fines
If you thought the paperwork involved with being self-employed in the UK was a chore, then Germany is something else. Unless you are highly fluent in German, don’t even attempt to do it yourself

Working in France

As one of the champions of the EU, France is an extremely easy place for UK contractors to obtain work, and you will most likely not need any kind of permit
Renowned for their love of leisure, most companies enforce a strict 35-hour working week. There is even a ban on out of office emails and phone calls
It should be noted, however, that working in France and putting the money through a UK limited company is not compliant with French tax laws and you will be required to pay tax in France as well as in the UK

Working in the Netherlands

In order to obtain a work permit, it is a requirement to register for health insurance. This will come out of your pay as a percentage (around 17%) and will cost a maximum of €33,000 a year.
One of the most attractive aspects of working in the Netherlands is an allowance in place for skilled workers coming to work in the Netherlands which allows you to take 30% of your gross salary tax-free.
In order to obtain the 30% ruling, you must have the relevant experience in your field. A higher education qualification or professional certificates will also help your eligibility. The application for the 30% ruling should be made by your employer within four months after the start of employment and must be applied for with each subsequent employer.

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A-Z Guide to Limited vs Umbrella

Setting up and running a limited company, where you become a director and the sole shareholder, is the most tax efficient way of contracting and has a number of advantages.

There are a number of advantages if you take the limited company route. For a start, you control your own finances. You can claim back a wider range of expenses, ie accountancy fees, equipment and software costs. The flat rate scheme allows you keep some of the VAT you receive, which is an important consideration. It is not difficult to run your own company as long as you have the services of a good accountant.

This leads some to use the services of umbrella companies. In this instance, they enter into a contract with the umbrella company whereby they become PAYE employees again. The umbrella company then deals with their clients and takes responsibility for invoicing, paperwork, the collection of money due and payments to each contractor.

The simplicity of this arrangement is offset by the fact that it offers little benefit for individual contractors in terms of reducing tax liabilities, and may actually increase their costs as service fees levied by the umbrella companies and may reach as much as 9% of the value of the contract. It is also worth noting that many umbrella companies insist on either a minimum level of charging or a minimum time for which you must pay for their services. (by comparison, accountancy fees for running a limited company are around £1,200 per year, irrespective of turnover).

Before you turn to an umbrella company there are questions you should consider.

What exactly will they charge?
Is there a minimum charge?
What tax or accountancy qualifications does their form possess?

Forming a limited company is the best way to maximise your income, allowing you to take home more than when you are dealing with an umbrella company.

IR35 Factor

If you are not willing to operate your business as a proper Small Business you will get caught up to IR35 legislation. Before 2007, (as the Managed Service Company Legislation was introduced in the 2007 Budget) there were few options with Umbrella companies. Now, only viable umbrella option is to use a PAYE Umbrella, which effectively means all income is paid as though the contractor is caught by the IR35. If you are a contractor running outside the IR35, you are far better off using a Limited liability.

Below are the key differences of Limited vs Umbrella.

How much your accountant going to charge you from the Limited Company.
How much is the Umbrella company going to keep your money?
If you are a high-end contractor paying 400+ per day and your work falls outside IR35, then you are better off with a Limited Company option.
You keep complete control of your financial affairs
As a director, you have the 100% responsibility of your business including tax liabilities, Insurances and all other compliances fall within the business.
You get paid directly to your business account and have the 100% control of your financials.
Tax is much less compared to umbrella solutions (only if you fall outside of the IR35)
Greater tax planning opportunities.
You are your own boss.
The ability to claim a wider range of tax-free business expenses, such as travel and subsistence, accountancy fees and hardware and software costs.
VAT Savings if you are registered for flat VAT scheme (which allows you to charge 20% VAT but only pay back HMRC 14.5%)
Opportunity to expand your business.
You can have multiple sources of income and also look at the options of taking more contractors or employees onboard.
Running your own business is not difficult (it may be time-consuming but it is not hard).
There is a certain amount of paperwork involved.

Umbrella Solution

Your burden of running the company will disappear and umbrella company will take care of the Tax and all other admin matters.
You do not get paid directly from the agent or the client as money will be paid to your umbrella company and you will be get paid once they deduct their fee and taxes.
You get paid what your umbrella company pays.
Very easy to use and you simply enter your timesheet, expense details and wait to be paid.
NO need to worry about VAT/ PAYE/ Tax returns (you still need to do your personal returns though).
It is worth of considering an umbrella solution if you are a first timer until you can get the grip of your liability. Once you gain more experience in the contract market, you can switch to a limited company (possibility after 1-2 years of operating under an umbrella).
Make sure your umbrella company is a reputed and well-experienced institution as your money will be handled through them (there must be an element of trust).
If you are a first timer, there is a possibility that your first invoices will be paid as one lot (can take up to 2-3 moths time if you paid monthly). So there must be an element of trust.
Once you signed up with your umbrella company then they will become your employer and they have the control of your payments along with NI responsibilities.
Some Umbrella companies offer some employment rights such as holiday, sickness, maternity or paternity pay.
Do your ground work and carry out proper research before you sing with any umbrella firms. (ask from colleagues, friends, look at online reviews etc…) Also, make sure that your umbrella company is a member of the FCSA (Freelancer and Contractor Services Association).

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A-Z Insurance Guide

As a contractor insurance is always a serious consideration and should take a high priority on your “hit list”. It is important to make sure that you have the right insurance policy with a suitable level of cover for your business needs. There are 7 basic insurances every contractor should consider before you taking the contracting path,

Professional Indemnity Insurance
Public Liability Insurance
Employee Liability Insurance
Office/ Small Business Insurance
Personal Accident Insurance
Cyber Attack Insurance
IR35 / Tax Liability Insurance

Professional Indemnity

This is designed to protect you against the cost of settling or defending a client's claim that there is a problem with the work that you have carried out.

Make sure you understand the risk of your business (what can go wrong short and long term). Your insurance should cover negligence, intellectual property infringement, defamation and breach of confidence.

Most of the agencies and employers ask for Professional Indemnity cover before you sign the contract so you need to understand the requirements in detail.

The scale of your clients and the projects/ programmes you work on.
What are the potential legal cost?
What is the maximum compensation you going to get?

Public Liability Insurance

Public liability insurance can provide essential protection to your business if you deal with the public, have clients visiting your office or if you or an employee needs to visit other premises. If you do not have any visitors coming to your business premises you may still suffer a public liability claim, ie if you accidentally damage a client’s property at their office.

Employee Liability Insurance

It is a legal requirement for most businesses with employees in the UK to have employer’s liability cover of at least £5 million. This insurance policy could pay your legal and compensation costs if you are sued by an employee and if they believe their work has caused them injury or illness. It will cover any person working for your business even if they are volunteers or are self-employed.

Office/ Small Business Insurance

Office insurance is designed to meet the specific needs of those that work from home or run home-based small businesses. It covers such things as portable equipment, business interruption, equipment breakdown and buildings.

Personal Accident Insurance

If you or a key member of your staff suffers from an injury from an accident that has left them unable to work, personal accident insurance cover may pay your business a weekly amount. In the case the injury results in permanent disability or death, your business could receive a lump sum payment.

You may also need personal accident insurance if you have concerns as to how the business would continue if you were unable to work, want to protect your business income or need to honour your business commitments should the worst happen.

Cyber Attack Insurance

You need to consider this insurance if your business has a risk of a cyber-attack to your computer systems. The insurance should cover, simplicity, reputation protection and a trusted partner in the event of a claim.

IR35/ Tax Liability Insurance

This is becoming popular these days due to the uncertainty surrounding the IR35 legislation. There are two types of policy available to contractors that will cover tax and IR35 risks,
Defence only
This will handle the HMRC inquiry and any cost surrounding that.
Comprehensive
This will handle the HMRC inquiry and any cost surrounding to that and also the liabilities if you are subsequently found to be caught by the IR35.

Other optional Insurance for contractors.

Income Protection Insurance

Protect your income in the event of even a minor illness or accident (if your GP advise that you are not fit for work).

Life Insurance for Contractors

This covers your family (lump sum or a monthly amount) in case something happens to you.

Medical Cover

This can be tailored to cover your requirements and provide a private medical cover for your treatments.

Critical Illness Insurance

Critical illness insurance sometimes packaged into a life cover and addresses any cost from the devastating effects of the serious illness.

Be a Pro Contractor

The Pro CV format

Tailor/ Customise your CV

Show you are a driver NOT a passenger

What are your USPs (Unique Selling Points)

Stick to Knitting

Keywords

Create an experience table with keywords

Use bullet points

Where to put your qualifications

Length of your CV

CV Profile/ Summary

Stay in your sector

LinkedIn factor

Final thoughts

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Interview Preparation

During the interview

Interview Techniques

How to structure the interview

Discuss their targets and goals for this role

Ask questions all thought the interview

DOs during the Contractor Interview

DON'Ts during the Contractor Interview

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Why you should consider Contracting?

There are few options to jumpstart your contract career.

Directly apply to an employer

Recruitment Agencies

Apply through a Job board like Pro Contract Jobs

This is what Pro Contract Jobs offer for Candidates/ Contract Seekers.

Contractor basics to hold your ground

Pro Killer Interview

Pro Killer CV

Determine your Target Rate

Present yourself

First Week

Think about Certifications

Should I improve my Skills Portfolio?

Develop a Website that provides information about your services.

Keeping up to date

Social Media/ Online Networking

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Pros of Contracting

Cons of Contracting

Key reasons why you should contract over a permie job.

Initial transition or the 'jump' is the hardest bit, particularly if you have debt. Few points to consider before you dive in from permie to contracting.

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Highest paid IT contractor roles in the UK

Which IT skills are currently in demand the most?

Emerging IT Contracting Skills

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Set some goals,

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Advantages of employees working from home.

Disadvantages of employees working from home.

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How to negotiate a rate when you are on a contract?

Have an exit strategy

Research the market

Make a business case

Supply & Demand

Have a game plan