Tag Archive | "IT contractor jobs"

IT Contractors – From Zero to £500 a Day…In 90 Days

IT contracting has always been profitable in the UK, but to go from nothing to £500 a day (and beyond) in only 90 days? You must be kidding.

Actually not, because as a recent survey quite clearly points out, the average new IT contractor on the scene will be making an average salary within roughly 3 months.

That is £500 a day if you didn’t know, and it just goes to show that tapping away at your keyboard and offering all of your computer related knowledge to companies, well, it pays off and gives you the chance to profit.

So the average IT contractor is taking home £500 in his or her pockets every night, stuffed full of cash…but did you know that some people in the IT industry are making even more? Yes they are.

According to the survey, 8% of IT contractors make more than £700 a day, which isn’t bad money if you can get it. No surprises then that so many employees are quitting their jobs and going out on their own, into the world of self employment and IT contracting jobs.

“Do you want cash or would you prefer a cheque?” is what those companies say to IT contracting professionals.

“I don’t care, as long as I can buy a Rolex with it,” is the response from the hot shot IT contractor.

Yes, this is definitely a boom time to be self employed and involved in IT, and if you play your cards right then you could soon be rolling up to jobs in a brand new Ferrari.

However, while enjoying the six or seven figure lifestyle does have its perks, there are also things you need to consider before splashing the cash.

Sure, having a wad of banknotes in your pocket all day, every day, will make you feel like a million bucks, but have you considered paying the tax man their share? Unfortunately many IT contractors completely overlook this important step.

It’s all very well getting £500 a day…or even £1000 a day, but when you think you are above the law then you are going to be in for a rude shock.

HMRC are coming down on IT contractors like a ton of bricks is what I’ve been hearing, and even if there are only a few mistakes on your tax return then expect them to come after you like a gazelle in the wild.

They are hungry lions you see, and although you might be a rich gazelle, the fact of the matter remains that no matter how much cash you have in the bank you must make sure you pay the right amount of tax and everything is in order.

That is why I advise every IT contractor in the UK to hire an accountant.

Not just any accountant…a contractor accountant. Someone who is well schooled in the art of doing books for IT contractors.

So take a look around this site for the best contractor accountants, and then make sure you hire them quick.

Posted in newsComments (0)

Caffe No Tax – “Not a Bean”

If you sold £288 million pounds worth of lattes last year, then how much tax would you expect to pay? “Not a bean,” is an answer that would be surprising.

However, the popular coffee shop called “Caffe Nero” have apparently done exactly that, to the point where on their official tax form for the last 10 years…there has not been a single penny paid to HMRC.

“That is strange,” many pundits have commented, especially when you consider that other similar companies are paying quite a bit of cash in corporation tax, year in and year out.

Even our very own hard working contractors. The very people who are the foundation of British economic success. Well, they are paying more tax than Caffe Nero, apparently, which just isn’t right if you ask me.

Sure, you can hire a contractor accountant to save you money on your tax return, which many people who visit this site do (just look to the right of the page for the best accountants), but it still doesn’t feel right that many of these big companies are getting away scott free.

Italian Coffee Holdings is the name that officially has been registered with companies house, although “Caffe Nero” is what your average man and woman on the street will know them by.

Some people march in there first thing in the morning, eager to get served their morning latte before rushing off to the office, another busy day on the cards no doubt.

Others, on the other hand, are more relaxed in their approach to coffee drinking. They stroll in at 11am on a weekday, put their feet up and enjoy a flat white. “Caffe Nero sure does make good coffee,” they say.

They also hire good accountants it seems, who are no doubt working around the clock to ensure that Caffe Nero is always the coffee shop that pays “tax zero.”

Who knows exactly what is going on here though? For all we know Italian Coffee Holdings, Caffe Nero and the accountants who they hire…well, they could be doing everything by the book and by the law. Only a court and a judge can decide otherwise.

Usually, corporation tax comes in at 19% on the profits that a company makes during the year, although Italian Coffee Holdings have paid nothing because they actually recorded a loss.

That’s right. While Caffe Nero are doing nearly £300 million quid in coffee sales per year, the company behind them are supposedly losing money.

Just what are they doing with all that money? Do they pay their servers £200 an hour or something? Perhaps all of you IT contractors should scrap the computer for the coffee machine, and don the Caffe Nero uniform to make the real money.

“Would you like a donut with your coffee, sir?” is what you will say, safe in the knowledge you are going to earn £2000 for a 10 hour shift.

Posted in newsComments (0)

  • Switch Accountants for FREE

    Switch Accountants for FREEAt K&B Accountancy Group we have introduced a simple and straightforward approach to changing accountants. We’re offering contractors, consultants and freelancers the opportunity to switch to K&B Accountancy Group for FREE without the need to pay for any ‘catch up’ or retrospective accountancy fees for the previous year’s accounts and corporation tax return* *T&Cs apply

our top 5 twitter posts


contractor accountants


twitter Join the conversation
Free Telephone Advice