The Complete Guide to Contracting in the UK

A good umbrella company should offer its contractors a hassle-free working life and its agency partners hassle-free contractors.


An overview of contracting – Is the right option for you?

ABC of contracting

The life being a contractor is different from being employed in various ways. No doubt there are risks involved but offers huge advantages over permanent employees. A contractor works offers its service to a client/agency under a contract that provides manner and time of completion of task in addition to other important terms. Normally a contractor offering his services is paid hourly but for some projects a fixed price is also a viable option.

How clients benefit?

The benefits a client may get while contracting with contractor are explained here.

The working hours are more flexible than employed staff.

The basic reason why companies opt for contractors is that they help such companies to save a lot. The Contractor only charges a specific rate and does not involve sick pay, holiday pay and national insurance, so the companies do save a considerable amount.

The hiring process is easy and is a short term commitment.

They provide their skills using their own resources so the client need not to keep a in- house team of workers.

How contractors benefit?

There are many reasons why a contractor finds charming or what benefits they get out of it. Few of these are laid down for your assistance.

  • There is no boss and this concept is fascinating for most of the contractors.
  • Contractors are paid well for their services hence their average monthly income is higher than regular employees.
  • They enjoy freedom as there is no hard and fast rule and a time table to follow. The only thing they have to ensure is the completion of a task within stipulated period of time.
  • They can also save considerable amount in respect of taxes if they seek professional help in this regard.

Issues with contracting

The contracting is not as easy and secure for everyone to deliver similar results over and over. There are some pitfalls too for those who have either taken this business lightly or their skills were not appropriate for this kind of work. Even if you have the experience and right skills, contracting lacks the security offered as a permanent job. There is no guarantee how much and when you will get the work. The contractors are not provided with the basic rights enjoyed by regular employees. There is no holiday or sick pay and they are also deprived from national insurance facility.

Being a successful contractor

In order to become a successful contractor should have following qualities.

  • He has the ability to work in different conditions and with different companies. Those new comers who lack in this quality may struggle in their contracting business.
  • Must have good communication skills as is the first step to start every new contract.
  • Shares the knowledge with other contractors so that he can seek help whenever needed.
  • Has the capacity to find new contract through deliberate efforts. A contractor should not rely completely on the agencies hence new ties can be built to get regular work from the clients.
  • Keeps in touch with prospective client so that a good working relation is developed.
  • The contractor should build as much good reputation as he can, regarding quality and standard of his work. Being a contractor your reputation is the only tool and a key to success in contracting business. Therefore, make sure that you complete your tasks within time and all the directions are followed diligently.

The next step

After reading all the facts and things related to contracting if you consider yourself as the right person for this kind of profession you should do some research regarding the market trends of contracting. Just stick to your present job and never quuntil and unless you are sure about the right skills and relevant experience to work as an contractor. Look for the contracting jobs related to your skills through various agencies. will give you an idea about how much you can earn and what type of work is easily available.