Nearly half of IT contractors earn above UK employee salary average in just 90 days

IT contractor

Nearly half of independent contractors are able to earn above the national annual average salary of a full-time IT professional in just 90 days, new research has revealed.

4 in 10 independent contractors, the majority of whom work in IT and digital roles, reported day-rates of £500 and above, suggesting that if they were to work five days a week on a contract, it would take just 18 weeks to earn £45,000, above The Office for National Statistics’ average salary for a full-time professional employee working in IT, which is £44,665.

The research revealed the largest proportion of independent contractors surveyed are paid between £501 and £700 per day, while 8 per cent earn £701 or above for each day on contract.

Research into UK contractors, the majority of whom work in IT & Digital roles, highlighted that 12 per cent earn between £100 – £300 per day, 20 per cent earn between £301 – £400 per day, 28 per cent earn between £401 – £500 per day, a third earn between £501 – £700 per day and 8 per cent earn over £701 per day.

Seb Maley, Qdos Contractor CEO Seb Maley commented on the findings: “While these figures represent a select group of highly-skilled, qualified IT contractors, and not the entire freelance market, they do indicate that independent working – particularly in the IT industry – is career choice which brings with it the opportunity to earn more and the freedom to work how and when people choose.

“In comparison to employment, self-employment will always bring with it added risks and less security, which in many respects counter balances what might well be perceived as expensive day-rates.

“However, recent IR35 reform, and the prospect of further changes have left many contractors concerned over whether they will be inaccurately placed inside IR35 – a move which would see them pay similar taxes to employees, without receiving the same kind of benefits. To safeguard against this and protect the UK’s independent workforce – which together contributes over £119bn to the economy each year – it’s essential that each contractor engagement is assessed individually, and by experts.”

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