It was a long drive, I finanly got out of my 8 year old car, happy that it got me to the interview on time and in one piece. This was my first interview as a contractor and I had no idea what to expect, let alone how much I am worth.<\/p>\n
2 days later, I got a call back saying they like me, and want to over me a 3 month contract. The next question was, “what is your rate?”.<\/p>\n
In all honesty I had no idea what to say, the agent gave me a typical range, and I decided to say somewhere in the middle. He said fine all to quickly, meaning he was happy because he got me at a rate that was lower than he was expcting.<\/p>\n
If I was to do that again, after the years of experience I have now, I would have taken time to research the market and see my market rate. Once I established that, considering I was new to contracting, I would have pitched myself close to that.<\/strong><\/p>\n Once you are established, you can obvioulsly go higher based on your skills and how closely it matches the role. The reality is, if the company has spent money on interviewing you, and made you an offer, they want to land you as soon as possible. Finding a good candidate is time consuming and costly for them, remember that.<\/p>\n Other things to consider before you make the plunge:<\/p>\n Being an IT contractor means you are self-employed. Have you ever come across the term IR35? If no, then it is high time you know what it is in order toprosper in this field. Paying taxes is very important. Whether one is employedor works as self-proprietor.IR35 was designed to ensure that those working as self-employed do not evade paying taxes. The IR35 applies to limited companies and those who offer their services by the use of broker or middlemen.The emergence of disguised employment by most of the organization led to the creation of ir35. Disguised employment is where a company employee works on a contract with the company by the use of the middlemen.As an IT contractor. Knowledge of IR35 is vital as it brings to your mind that you will never evade taxes. By not evading taxes, you have to set your rates having at the back your mind that what you have set will sustain you after the tax-man has gone with his share.<\/p>\n The knowledge of IR35 bring anothermajor question. How can l increase my rates? This question comes after an ITcontractor known the amount that the taxman requires him\/her to submit after agiven duration.Increasing your rates as an ITcontractor implies maximizing your potential income. Two factors should comeinto your mind when thinking of how to maximize your potential income.First, it is important to have at yourfingertips some of the factors influencing the need for your services.Second, what isyour personal command on your rates?Let us begin bylooking at the factors influencing the need for it contractors\u2019skills\/services;\u00b7 Thegeneral economy \u2013 every successful business is pinned on the general outlook ofa given economy. When the economy is on a boom, then be assured your businessas an IT contractor will boom too. When the economy is gloomy, expect nothingbetter. For the past 10 years, the IT contracting industry has registered aboom. Why a boom? Because the economy requires the services of IT contractors.And also many private and public firms feel it is cheaper seeking services fromfreelance workers as compared to employing new workforce permanently. Thefreelance workers work on contract basis therefore after the expiry of thecontract the company is done with you.\u00b7 Theneed for IT specialists \u2013 there is a massive positive growth in the IT industryfrom the past years. For instance in the United Kingdom recently, a researchreveals that the digital jobs have grown to more than 1.5 million. This growthcalls for the demand of IT experts. Therefore putting the IT contracting job ondemand.\u00b7 Geographicallocation \u2013 as an IT contract, where you are situated directly influences thecharges you render for your services. If you at an area where IT contractservices are not in demand them most definitely your rates will be down. But ifyou situated at a place where your services sell like hot cake, then you shallcharge higher rates.Personal command at your rates. On thislet us focus on the below points;\u00b7 Yourpersonality \u2013 the IT contract involvesrelating with people. You are not working for robots but you work for people.The way you approach the issue of service raise to the currentperson\/organization you work for will greatly impact on whether you are likelyto receive that rise or not.Being tactful, is vitalhere.\u00b7 Addednew skills \u2013 in case you have just acquired some new skills while working onyour current project. You should demonstrate these skills. Demonstrating thenew skills should put you in a position of getting more pay.\u00b7 Natureof the client \u2013 nature involves if you are working for the client through abroker or it is a direct client. If it is a direct client, then expect a higherpay as compared to when a broker is included.Having the above in mind. Answering thequestion, how can l increase my rates? Is very easy.3. What is contract extension?After knowing some of the things to bareat the back of your mind on increasing the charges. Another vital questionarises. As an IT contractor. Your work basically is based on contract. Nopermanent employment.You may sign a contract with a givencompany. Start working, in the due working process or after the end of yourcontract, the company management may be impressed with your work. They maydecide to prolong your task. This is what referred to as a contract extension.It entails changes in dates to match the new agreed date.4. Do l need an accountant?Working hard, receiving goodrecommendations from various people and contract extensions from variouscompanies. is a sign of a positive growth, more cash is flowing into yourbusiness. With the steady inflow of money into your business. There may be aneed to employ someone who will help you in the management of your cash.Employment of an accountant means creating an employment opportunity.5. Do Contractors get raises?Beinga freelance or a self-employed person. The question, do contractors get raise?May sound ambiguous. Why? Because you are not permanently employed by someone.But my answer is yes. On your line of duty, always you will keep working formore new clients. Every new client you should entitle unique charges. Doingthis you will get a raise.Didyou learn something new from the article? Was it of help to you? If yes feelfree to share widely my article and keep hitting the comment box!<\/p>\n","protected":false},"excerpt":{"rendered":" It was a long drive, I finanly got out of my 8 year old car, happy that it got me to the interview on time and in one piece. This was my first interview as a contractor and I had no idea what to expect, let alone how much I am worth. 2 days later, […]<\/p>\n","protected":false},"author":1,"featured_media":397,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"pmpro_default_level":0,"footnotes":""},"categories":[79],"tags":[89,88,86,84,87,85],"yoast_head":"\nWhat is IR35?<\/h2>\n
How can l increase my rates?<\/h2>\n