Contractors
- To email your CV, click here cvs@vector-uk.com
- Making the move from Permanent to Contracting
- Setting up your own Limited Company
- Joining an Umbrella Company
- Employment Agency Regulations and IR35
- Vector’s guide to being a successful IT Contractor
- Getting the best from your CV
- Face to Face Interview Tips
- Telephone Interview Tips
- Post Interview
- IT Services - Example Organisational Chart
Setting up your own Limited Company
Due to the tax advantages, the majority of contractors work through their own Limited Companies.
You can set up your own company online via the Contractor UK website www.contractoruk.com under “Company Formation”; alternatively you can apply direct to Companies House www.companieshouse.gov.uk
You will need a good Accountant to manage your administration on your behalf and there is even a selection of Contractor Accountants who will set up your company for free providing you sign up as a client. It is important to choose an Accountant which you are happy with, has the relevant experience in IT Contracting and is located near to you as this will make life easier and them much more accessible.
Once formed, you will need to appoint a company secretary to fulfil the legal requirement to record meetings and perform administrative duties. Many contractors appoint their partner, or a parent as in practice the role is minimal and not time consuming. You will also need an address for your registered office.
The owners (shareholders) of a limited company are protected against liability for the company’s debts. So, if the company becomes bankrupt, as a shareholder, you will only lose the value of your shares and as a director you will not be liable for the company debts either, unless it is proved that you have acted improperly or committed an act of fraud under company law.
It is a good idea to have around 6 months living expenses put by as a cash reserve, just in case there is a break in your contracting work.
For further information please visit the Contractor UK website www.contractoruk.com
Professional Indemnity Insurance
We recommend that you take out sufficient insurance cover as a small error could be costly. Examples of this could be accidentally wiping data or failing to install a system which meets the clients brief. Even if as a contractor you are not at fault, the cost of legal representation and expert evidence could cost you thousands. It is far better to be safe than sorry. Companies like Caunce O’Hara offer Professional Indemnity as well as Employers and Public Liability insurance, further information is available on their website www.caunceohara.co.uk
