What types of government jobs are available for contractors?
There are so many different types of contracting jobs available for those looking to work for the government.
Examples of some of the most common sectors include:
- The Ministry of Defence – from engineering to security
- NHS
- Local councils and authorities
- IT – this could be in software development, cyber security or data analysis
Do I need to worry about IR35?
IR35 – the bane of many contractor’s lives! This legislation is aimed at putting a stop to ‘disguised employees’ – preventing workers from benefitting from the perks of self-employment when they are in fact employed.
You will be either ‘inside’ or ‘outside’ of IR35, with the outcome based on your level of risk, liability and responsibility as a worker.
If your contract shows similar working practises to other contractors then you will be deemed as being ‘outside’. If not, your contract will be ‘inside’ and treated similar to that of a permanent worker.
Unfortunately, there are many contractors who find themselves being given an incorrect status, which can mean having to pay more tax and NICs and losing out on benefits they should be entitled to.
There is an assumption that by working for the government, this automatically means falling in the ‘inside’ IR35 category; but this isn’t the case at all.
Your status will be worked out the same way as someone who doesn’t work for a government organisation.
To get more of an understanding of IR35, take a look at our IR35 and Sole Traders page.
Limited vs Umbrella
As soon as someone decides to join the self-employed sector, they’ll need to make the decision about how they want to trade.
Here, we take a look at the limited company and umbrella routes, but for more information on becoming a sole trader, read our How to set up as a Sole Trader page.
There are pros and cons to both; you’ll just need to weigh these up and work out which is best for you.
For example, you might find that the limited company route is better for you because you expect to be contracting for an extended period of time and earning over a certain amount (£100 a day, or £25,000 per year).
With umbrella company contracting, this is usually a better option if you are only contracting short term, or you don’t want to have to take on the administrative side of being self-employed.
For more detailed information on this, read our Limited vs Umbrella page.
If you need any further help, or you’d like to sign up you can either contact us via our online chat, call one of our friendly experts on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.