9. Your first contract

Once you have secured your first contract role, agreed a rate and a start date, a contract needs to be signed between your Invoicing Company and the Recruitment Agency (or between your Invoicing Company and the Client if you are going direct).

The vast majority of agencies, if not all, require you to invoice using a limited liability company. This can be done from your own limited company (often referred to as a Personal Service Company) or from an Umbrella Company. Some agencies allow you to become "PAYE" through their own payroll service, although this is the least tax beneficial option available to a contractor.

With IR35, it is essential at this stage to run your contract via an expert who can assess the effect of IR35 on your business. Read Lawspeed's guide on what to be mindful of when signing a contract here and CUK's comprehensive section including legal guidance on contracts here.