Contract Opportunities
Contract positions are those that offer a candidate’s services to a client via a Limited Company or umbrella company. These roles are usually either urgent, temporary, project-based or for a client that does not have head-count provisions. Contractors are generally assigned for a fixed period of time (e.g. 6 months) or for a specific piece of work or project where the contract is terminated after completion.
Contractors are paid monthly and the amount reflects the hours signed-off on weekly timesheets, multiplied by an hourly rate of pay. Contractors generally earn approximately 1.5 times the equivalent annual salary for the same permanent role. However, contractors are not generally entitled to company benefits, training, paid holidays, pension contributions or the long-term security of a permanent role. although contracts are generally expected to run for their whole duration, there is usually a notice period of around 1 month for termination of the contract by either party for any reason. Contracts are usually arranged very quickly and only require one interview. Some of the work can sometimes be performed remotely. Contractors are usually required to cover themselves with Professional Liability insurance incase they damage any client property. Umbrella companies usually include this in their offering and your Employment Agency is often covered just in case.
Umbrella companies are often regarded as a quick-and-easy alternative to setting up your own Limited company. Depending on their individual offering, they charge around £60 per monthly invoice that they send out on your behalf. They manage your tax contributions, your invoicing, credit control and compliance with European and national legislation such as IR35. Given that you can usually write-off a number of your business costs against your revenues before tax is applied, the cost of using an Umbrella company is greatly reduced if you have high daily business costs such as travel, subsistence, phone bill or hardware. A general rule is that it is often marginally more economical to set up your own Limited company if you are paid over £25 / hour on a full-time basis. But running a Limited company also comes with having to file your own annual accounts, tax returns and managing your own invoicing and credit control. When choosing an umbrella company, it is advisable to shop around and speak with a few representatives of companies. Your recruitment consultant can reccommend some companies but essentially you will be paying them to act on your behalf so ultimately the decision and the responsibility of choice lies with you, adn not your agency. You could tell a prospective umbrella company about the financials and the terms of your contract, and ask them to estimate what your monthly "take-home" pay will be and if there are any hidden costs. Ask if they cover Professional Liability insurance and if they do online timesheets for simplicity. Getting an agreement in place is often as simple as signing a contract and putting them in touch with your Employment Agency.
For more advice on contracting within the Pharmaceutical industry or to hear about contract work opportunities, upload your CV in confidence or call us on 0845 338 6223.
This information is the general opinion of ProClinical. Facts and figures should be taken as estimates and can change in time. ProClinical will not accept any responsibility for damages incurred by any individual or organisation as a result of how this information is used.