Finding your next IR35 contract can be a rewarding journey, especially when you’re equipped with the right strategies.
As an accountancy firm dedicated to helping and advising small business owners, we’ve put together some key tips to help you navigate this process with confidence and success.
1. Leverage professional networks
LinkedIn and specialist forums:
Maintain an active presence on LinkedIn [KS1] by regularly updating your profile, showcasing your skills, and networking within relevant groups. Specialist forums like ContractorUK or IR35 Shield also offer access to job boards and communities of contractors.
Referrals:
Building strong relationships with previous clients and colleagues can lead to referrals. Let them know you’re open to new opportunities.
2. Collaborate with recruitment agencies
Partner with agencies specialising in IR35 roles for contractors:
Be upfront about your preference for outside-IR35 contracts and ensure they provide transparent job descriptions and determination assessments.
Check reviews or forums:
Identify agencies with good reputations for contractor-friendly practices.
3. Invest in a high-quality online presence
Create a professional website:
Showcase your portfolio, certifications, and testimonials.
Use search engine optimisation (SEO):
Make your site more discoverable by potential clients or companies looking for skilled contractors.
4. Understand market trends
Research sectors with higher demand:
Industries like IT, engineering, and project management often have a robust pipeline of contract opportunities.
Stay informed about stable industries:
Focus on industries less impacted by economic fluctuations or government regulations.
5. Embrace direct outreach
Identify and approach companies directly:
Tailor your pitch to highlight your flexibility, expertise, and the unique value you bring in solving their pain points.
Negotiate IR35 terms directly:
This shows initiative and allows for clearer communication about contract expectations.
The importance of a six-month financial buffer
Periods between contracts are inevitable, whether due to economic conditions, market trends, or personal circumstances. Having a six-month financial buffer in your company reserves is not just a precaution. It’s a necessity for long-term business sustainability. This buffer ensures that you can weather any financial storms without having to compromise on the quality of your work or accept contracts that aren’t beneficial in the long run. It provides peace of mind, knowing that you can maintain your financial commitments and focus on strategic growth during these gaps.
Why six months?
A six-month financial buffer is essential because ongoing expenses like software subscriptions, office space, insurance, and accountant fees don’t pause during contract gaps. This buffer allows you to continue drawing a modest salary, ensuring your personal financial commitments remain intact. Also, having a cushioned reserve prevents you from having to take unfavourable contracts under pressure. You can also use the time out of contract to upgrade your skills or invest in business growth initiatives.
How to build the buffer
To build a strong financial buffer, start by allocating a percentage of your earnings (e.g., 20–30%) from each contract to the buffer fund. Additionally, identify discretionary business expenses that can be minimised while you build the reserve. To ensure consistent contributions, use a separate business savings account and automate monthly transfers.
Benefits of a buffer
A strong reserve not only ensures peace of mind but also positions you to negotiate better contract terms without the fear of financial strain.
It also helps you to take calculated risks, such as pursuing longer-term, high-value projects.
Conclusion
Securing your next IR35 contract requires proactive effort, from leveraging networks to aligning with industry trends. However, the secret to true business continuity lies in financial preparedness.
Build and maintain a six-month buffer in your Limited Company reserves to navigate contract gaps confidently. You’ll also be able to focus on quality opportunities and sustain your business over the long term.
Remember, a planned approach keeps your business afloat during lean times. It also sets the foundation for growth and success in the ever-changing contracting landscape.