Save time and money with award winning contractor umbrella company

In many ways IT contractors experience the best of both worlds. They have the increased pay and flexibility of a temporary worker, but, with the right agency they will never be out of work. IT contractors get to choose the projects they work on, negotiate their pay based on their experience and take time off whenever they need it. And with the advance of the internet, cloud computing, virtualisation and any number of other technologies, IT contractors are never going to find themselves short of roles to drop into, which makes the uncertainty associated with IT contractors' careers a little less uncertain.

Businesses are always going to need tech personnel, but as the shift towards outsourced IT gathers pace, in-house staff are likely to end up taking a back seat, which is why the number of IT contractors operating in the UK is on the up. It's a no-brainer really. If you want more pay, better hours and work on the latest, cutting-edge tech projects of your choosing, then it's time to follow the rest of Britain's IT contractors and get yourself an umbrella company representative - like Orange Genie.

IT contractors undoubtedly face an inherent risk when they finish their job and go it alone. Of course, their future security depends on their ability to find work - or at least the ability of their chosen agency to find them work. But, as mentioned above, the risks IT contractors face are not as great as many might think. And with changes to the IT sector and global economy wreaking havoc with traditional business models, IT contractors are in many ways better suited to weathering any IT sector storm.

One of the best ways to avoid financial difficulty when contracting is to keep some cash aside for when you're not working - which means getting your finances in order. This is why umbrella companies like Orange Genie are a must for any IT contractors new to the game. As well as acting as a buffer between IT contractors and their employers - sorting out any contractual obligations with the minimum amount of fuss - umbrella companies will also ensure that tax obligations are being met and freelancing criteria are being adhered. The latter is vitally important if IT contractors are to avoid a run-in with HM Revenue & Customs further down the line.

One of the biggest issues facing IT contractors when it comes to pay and taxation is IR35 legislation. And all contractors - not just IT contractors - have to adhere to strict IR35 rules if they are to avoid being subjected to oppressive tax bills. Typically, an IT contractor who falls within the current IR35 legislation will be able to draw a modest salary, which is taxed normally, and top up their pay with dividends from their umbrella company.

The reduced tax burden reflects the risk that IT contractors take by tendering out their services as opposed to enjoying the security of a full-time contract with a regular employer. But, if IT contractors fail to take the necessary precautions and find themselves falling under the government's IR35 rules, the consequences could be severe. If IT contractors have their employment status challenged by HM Revenue & Customs, the tax bill could be substantial.

At this point, it is vital that IT contractors get their contracts checked over by an IR35 expert - such as Orange Genie. However, signing up with a reputable umbrella company can avoid this situation altogether. New IT contractors in particular should avoid the risk of falling within IR35 altogether by letting an umbrella company like Orange Genie put all the legal paperwork in place for them. This way IT contractors can focus on finding work and furthering their career, as opposed to worrying about the tax man.