IT professionals - Why you should consider a move into contracting
The last 12 months has seen a significant shift in the IT skills market
in Ireland. The IDA has been very successful in bringing new investment into
Ireland and this, combined with more confidence in the investment banking sector
and blue chip organisation’s has led to a skills shortage in certain areas.
As organisations continue to move to a more flexible workforce model,
they require contractors to fulfil the skills demand for certain projects. This
combined with unfilled permanent positions means that there is an abundance of
opportunities for IT contractors.
Skills in demand include:
- · Specialist networking and security skills
- · Developers with - Java, .net and Oracle
- · Automated testers
- · BA’s with financial services backgrounds
- · Technical Project Managers
What is the appeal of
contracting?
- Market: There are now more contract opportunities available than any other time in the last 4 years.
- Attractive daily rates: Daily rates can sometimes be as high as double the permanent salary for the same position. As demand continues to outstrip supply rates will remain at a premium.
- Effective taxation: Whether you set yourself up as a limited company or you use and umbrella organisation such as CXC you can take home a much higher proportion of what you are paid. Contractors should retain 80% of their invoiced hours.
- Variety: You can get exposure to multiple organisations and sectors as well as different technologies on a regular basis.
- Flexibility: You can chose when you work, typical contract duration is 6 months. However contracts often roll on, it is not unheard of for contractors to have worked several years with one organisation on multiple projects.
- Control of your own wealth management : Just because your not a permanent employee, it doesn't mean that you can't have a pension or income protection managed in a very tax effective way.
So what's stopping you from considering a move into contracting?
James Milligan, Senior Business Director
Recruiting experts in Information Technology
HAYS Recruiting experts worldwide
E: james.milligan@hays.com
D: +353 (0)1
6787649
Labels: .net jobs, Automated testers, conversion courses, Hays Recruitment, IT, IT Java jobs, IT jobs, IT Recruitment, Oracle jobs
posted by James Milligan
6 Comments :
Hi,
Under normal conditions (domiciled in Ireland etc.) I don't believe the taxation situation is all that different to a standard employee.
For example mileage from your registered address is site is only valid if you are regularly moving around. If you are positioned on a site for say 2 years then this is deemed your usual place of work and Revenue would not allow this.
Another misunderstanding that people have in respect of contractors and the taxation system is around expenses. They must be proven to be wholly and necessary for the job you are doing. So you can't claim for your suits and shoes etc.
My point here is seek professional guidance on this rather than making assumptions. With the current penalties and fines in place a Revenue audit could be a lot more expensive.
I would advise that anyone considering a move in to contracting consults with a finance professional or umbrella company for the appropriate advice.
As a matter of interest where do you get the 80% retention rate. Could you break that down a little please?
We provide revenue compliant solutions to contractors who consistently achieve retention of 75% to 85%. As each individual’s circumstances are different it is necessary to discuss the possibilities, but 80% is a realistic and achievable figure when utilising allowable expenses and pension opportunities. In CXC we work with you to minimise your administration and maximise your retention. In conjunction with our in house tax expert and tailored wealth management advisor our aim is to assist you to achieve high retention. If you have any questions please contact any of the CXC team on 01 6110707 and we would be happy to discuss your circumstances.
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