Growth through Talent

There Has Never Been A Better Time To Start Contracting!

 17th May 2021

Increase your Earnings, Flexibility, Autonomy & Variety

These are the key reasons that many candidates have ventured into contract roles and started careers in freelancing. The demand on the market for digital freelance talent (PPC, Paid Social, Programmatic & Display, SEO, Affiliates & Media Planning) has reached a new peak and there has never been a better time to get involved!

 

How do you get into contracting?

It is not as difficult or complicated as you might think and Pivotal can help you get set and guide you through. There are two ways to operate as a freelancer:

Limited Company / PSC (Personal Service Company)

  • Candidates who operate via LTD company start their own businesses and business bank accounts, manage their taxes, and pay themselves as employees.
  • Sounds complicated but, it is easy to register a new business with Companies House and you can use a specialist company to help manage your taxes accounting and insurances in simple monthly fees or, you can contact an accountant.
  • You will also need to take out Public Liability and Personal indemnity costing an average of £30-£40 per year.

Umbrella company

Umbrella contractors work through an umbrella company that manages your pay, insurance, and paperwork for a small weekly fee. Pivotal works closely with two FCSA accredited umbrella companies that are quick and easy to enroll with. Have a look here at a contract calculator to see what you can earn!

 

What about IR35?

“Inside”, “Outside”, “IR35” are terms you will have seen thrown around the market over the last few months. Simply put, IR35 controls how much you pay in tax as a freelancer. It is important to note that it only applies to freelancers who work through a Ltd Co or PSC. The IR35 changes do not affect umbrella company freelancers.

Pivotal can advise you on how to navigate IR35 to ensure that you are paying the correct tax and remaining compliant.

 

Demand for contractors and why

Demand has skyrocketed due to the shifts in the market, and we have seen a 125% uplift in contract roles in the last year. The combination of IR35 and the pandemic has led many contractors to move into permanent roles and we now see a significant gap in the market.

This has created what we like to call a freelancer’s market. Instead of a lack of roles and a decrease in day rates, for the first time in the last 5 years, candidates are seeing an up to 40% increase in day

rates across the market and a multitude of roles to choose from. Agencies across London are all looking for Paid Search, Paid Social, SEO, and Programmatic talent to support their teams on short-term contracts ranging from 1 to 6 months.

 

Average Day Rates offered

  Senior Account Executive Account Manager Account Director
February 2020 (pre-covid) £200 p/d £48k salary equivalent £250 p/d £60k salary equivalent £300 p/d £72k salary equivalent
December 2020 £220 p/d £52.8k salary equivalent   £280 p/d £67.2k salary equivalent  £350 p/d £84k salary equivalent
May 2021 £250 p/d £60k salary equivalent Up to £350 p/d £84k salary equivalent Up to £400 p/d £96k salary equivalent

 

What can you do next?

Get in touch with us! Contract roles are readily available for candidates with 1.5 years + experience who specialise in Search, Paid Social, Programmatic, or SEO. Setting yourself up to be a contractor is incredibly easy and takes no more than 10 minutes and Pivotal is happy to discuss and support you in making the transition!

View all of our contract opportunities here.