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UK Contractor companies
Hi,
I've noticed that in Belgium a lot of our temporary/contract workers are signed up to a contractor company who help them find roles, and also sort out their payslips etc. Is anyone aware of such companies in the UK?
I am considering returning to the UK to do some contract work (IT QA/pharma industry) and was wondering if this would be easier by joining a company for a while, just while I find my feet. I understand these companies would obviously take a portion of any day rate I would earn.
Most contractors work through agencies. These are basically companies that find people, and then pay them, taking a comission of around 15-20% on top of the contractor's daily or hourly rate.
Agencies tend to be sharks - it's a cut-throat business. It's not unusual for them to cream up to 50% off a green contractor who doesn't know the ropes or what his skills are worth, so it pays to do research on something like http://www.contractoruk.com/.
Some agencies will "payroll" the contractor - i.e. handle all taxes, etc. and pay you like an employee, however this is almost invariably a bad deal for the contractor, and is only suitable for newbies or people who have no intention o contracting long term.
You next option is an "umbrella" company, which will handle all your taxes and invoicing, and again pay you net. Trouble-free, but you pay for the priviledge.
Most contractors (freelancers) operate through a limited company. This is the most tax efficient option, as you can handle things like pensions, company cars, and other "business" expenses. But given that you'll need to pay an accountant to help you out, it is only worth it if your turnover is going to be above about £40000 a year. This is how most contractors operate in Belgium as well. Often going through UK based agencies.
Start here, and answer as many questions as you cn yourself.
http://www.contractoruk.com/
