28 November 2023

ARM Contractor FAQs

Career Advice Recruitment Advice Sector Insights

Our Commonly Asked Questions Around Contracting

If you’re considering becoming a contractor and need more information on what is involved and how it works, you have certainly landed in the right place. We have created a helpful guide outlining everything that you need to know.

Who is my Employer, the Recruitment Agency or ARM?

A contractor is responsible for their own business dealings when it comes to managing their workload and deciding which contracts to take on. However, a contractor is either employed through an Umbrella Company who pays them or many contractors are set up as a Limited Company.

Also explore why you should utilise a contractor.

I’m New to the UK, What Do I Need to Do?

If you are new to the UK and are considering becoming a contractor, you must follow the below steps:

  • Do your research when it comes to determining whether or not there is a demand for your skillset as a contractor
  • Next, you will need to get to work looking for contracts
  • Set up your own company
  • Remember to get to grips with IR35
  • Finally, remember to get insured.

What Do I Do When Leaving a Contract Role?

Providing that your contract doesn’t have a resignation stipulation, you will be expected to provide two weeks’ notice before leaving a role. As a general rule of thumb, you should provide more notice if you have been working on a long-term contract.

What is a Fixed Term Contract?

Fixed-term employees are employed under contracts that last a set amount of time. For example, many fixed contracts are put into place to last until a project has been completed or when an event takes place.

What is a Zero Hour Contract?

A Zero hour contract is an agreement between two parties where work is completed, with no set contracted hours agreed in advance.

What Does Exchange of Contracts Mean?

Once work has been agreed, exchange of contracts takes place and the agreement then becomes legally binding. This means that once you exchange, you’ve formally committed to completing any agreed work.

What is a Contract of Employment?

A contract of employment is a set agreement between an employer and an employee. Within this legal document, you will find a breakdown of employment rights, responsibilities and duties.

Also find out how to hire a contractor.

What is a Subcontractor?

Subcontractors mostly carry out work that a contractor cannot do, especially if it does not fall under their skill set. However, the contractor is still responsible for overseeing the project and ensuring that all works are completed to a high standard. 

Is a Contractor Self-Employed?

Yes, if a person is a business owner or contractor that provides services to other businesses, they are considered as being self-employed.

How Much Tax Do Contractors Pay in the UK?

You should always be aware that any income taken as salary beyond your personal tax allowance of £12,570 is taxed.  For example, you will be taxed 20% of your earnings if you

make between £12,571 and £50,270, 40% on earnings between £50,271 and £150,000 and 45% on earnings above £150,000. This is according to gov.uk.

Why Choose Us?

At ARM, we believe in making a difference in people’s lives. As one of the largest recruitment films in the UK, we understand what it takes to understand you – your passions, your skills, your talents, and your capabilities.

Our team of dedicated recruitment experts have in-depth knowledge of the technology landscape, with specialist market knowledge in Java development roles at every level.

We’re here to support you from beginning to end, giving you full transparency over your options and working with you throughout your career to help maximise your potential.

Get in Touch Now

Discover your dream Java developer role today. Get in touch with a member of our expert team to get the ball rolling, and find out how we can help support you in finding your perfect career.

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