The UK IT Contracting Market Place

Contracting in the UK is unique, no other place in the world can match the UK IT Contracting market

In job markets around the world contracting is usually a lower skilled method of working, where there is little difference between contracting and temporary employment. In the UK it's for skilled, driven individuals who are intelligent and wanting to earn considerably more then those in permanent employment.

Market Info

Current Size

40% of the job market is contracting

Earnings

30% higher rates then the equivalent permanent positions

Most sought after IT contractors

Key Legislation effecting contractors

2007: Managed Service Company
This law introduced in April 2007 made it illegal for contractors to operate through a limited company that was “managed” by a third party. Contractor can only legally work via an Umbrella Company or their own limited company, knows as a Personal Service Company. Read more

2000: IR35
Legislation introduced in 2000 that's used by the Inland Revenue to determine whether or not a contractor meets the definition of being self employed or a freelancer. Contractors who do not fall under this category are said to be caught by IR35 or said to be inside of IR35 legislation and are therefore liable to pay full tax and national insurance. You want to make sure you're operating outside of IR35 (safe from the legislation). If you're on a visa there may be further implications for you. Request an appointment to discuss your individual circumstances with BITE.

Finding Contracts and jobs

From Agencies

Most contractors will find their contracting positions through a recruitment agency. There are 1000's of agencies in the UK . Some specialise in only IT contracts and others are more general, covering all sectors of employment. Agencies are not only for contractors, most agencies will have jobs for: permanent, contract, temporary and part-time employment. The contracting market in the UK makes up 40% of the total IT job market, substantially more then in most other countries. The agency will put you in touch with the client but to get paid you need to have a limited company - either an Umbrella Company or a Limited Company of your own.

Market share

No recruitment agency in the UK has more then 3% market share. It's therefore important to work with several agencies. The size of the recruitment agency is not important, often a smaller one will work in a specialised sector within IT and will have clients that other agencies do not.

From clients directly

Not all contract jobs are advertised through agencies, although the majority are. In some cases the company will advertise positions themselves and will employ you directly. You will still need to have a limited company (Umbrella Company or your own limited company) to operate through, the client cannot pay you directly, if they are then its not contracting.