In accordance with a newly released study, IT contractors are taking on longer freelance contracts that pay less as opposed to freelance work that pays more. Results by the umbrella company Giant reveal that temporary IT workers are putting lengthy contracts that have a lower wage ahead as compared to casual contracts that have better pay.
The research found out that 66% of those questioned would turn down a greater paid job in favour of a less lucrative proposal and so this suggests that job security is essential during this worrying economic climate. Only 34% admitted they would choose a better-paying contract and the bulk claim that duration is being considered more valuable than income. For those who have chosen a job that has a lower wage, figure out what you will end up making over all with a take-home- pay calculator. And if you need any guidance in terms of IR35 law and regulations, your accountancy firm will be able to aid.
Extra findings reveal that less IT contractors are spending less time without work. The analysis discovered 80% of IT freelancers spent 31 days or less in between contractors compared with 78% from the same time a year earlier. What is more, the retail sector increased its use of IT skills as it changes and channels investment into m-commerce platforms. And 17% of the IT contractors questioned are employed in the telecoms sector which is a 43% increase from the same time in 2011.
If you are doing more and more work with one client, be careful to keep things different since you can become in danger of becoming too involved and attached with the company. And because of the recent alterations in IR35 regulation, you need to be cautious to stand alone as a professional and not be considered as an employee. If you’re taking on contracts that are lengthier with the same group, speak to an IR35 accountant today to learn what it really means for your taxes.
