What Exactly Is The Role of A Management Company for An IT Consultant?

As an IT contractor, you may have heard of a management company, but if you have never used one, you may be unsure of what they do and how their services can benefit contractors and IT freelancers.

 If you’ve been approached by a business offering to manage parts of your business on your behalf , it was most likely a management or umbrella company.

A management company makes IT freelancing easier by handling a host of business-related tasks for you. This means you don’t have to worry about accounting or invoicing. We take care of everything, so you can focus on your freelance IT projects and growing your self-employed business.

Are there any downsides? We think the advantages outweigh any drawbacks. That’s why we’ve created this article to explain how a management company like Hightekers can help IT contractors like you.

What Exactly Is A Management Company?

Before we get into the  nitty-gritty of a management company’s functions and roles, let’s consider first what a management company does in a broader sense.  

 A management company acts as a third-party employer for an IT freelancer or contractor. As an independent IT consultant , you find  the projects you work on and  choose the hours you work, but the management company will  handle admin functions on your behalf in return for an agreed fee.

A management company allows independent IT consultants like yourself to  focus on your clients and your projects, without the  without worrying about the time-consuming admin and paperwork that comes with running a self-employed business. 

When you  work with a management company, you will not have to create your own company,  and the management company will ensure that any work carried out remains IR35 and tax compliant on your behalf, just like an employer would.

What functions can a management company  oversee for an IT contractor?

A management company like Hightekers takes on the role of an employer for a host of  independent IT professionals. This ranges from design engineers, software developers, IT consultants and more.  

We provide all the support and services you would expect from any good employer.

Let’s take a look at some key services: 

Administrative support

A management company can take on all aspects of administrative support. Depending on your the needs, this could include:

• Invoicing
• Chasing payments
• Answering invoice queries
• Legal paperwork
• Fee collection
• Expense management
• Managing the PAYE function

For busy IT contractors that do not want to spend their time on admin and accounting, working through a management company  is an ideal solution that allows  more time to do what  you do best.,

For the cherry on top, you  keep  your independence and find the projects   you want to work on – all while enjoying the benefits of being employed..

Contract management

It’s not just the administrative tasks that a management company can handle for IT freelancers.

With expertise in software engineering, IT support, and other technical services, a management company can also oversee contract negotiations and provide estimates or quotations for you.

At Hightekers, we have a deep understanding of the IT industry, and when you work with us you benefit from our knowledge and experience, ensuring you get the best deals for your skills.

What’s more, choosing Hightekers means you could find key accounts through our professional network – an opportunity that might not be available to you as an independent IT contractor.

Bespoke Support

Another benefit of using a management company is the tailored support every freelance IT pro can access. Whether you need help with contract negotiations, compliance paperwork, or even training and development, the experts at Hightekers are here to assist you.

Instead of setting up and managing your own limited company, you can remain an independent IT contractor *and* enjoy the benefits usually associated with being an employee. 

When you join a management company, we act as the bridge between you and your clients, taking care of every aspect of your working relationship.

Benefits of Working with A Management Company

The overarching benefit of partnering with an umbrella or management company is the freedom to concentrate on your IT projects without getting bogged down by administrative duties.

Just like working for any other employer, you will work and be paid at the end of each month, while all the nitty-gritty details like PAYE, national insurance, and tax obligations are expertly managed for you.

As an employee of the management company, you gain perks like holiday pay, sick pay, and pension scheme enrollment. This arrangement significantly reduces the stresses of IT freelancing, ensuring your business stays IR35 compliant and adheres to UK HMRC and tax regulations.

Plus, with fewer forms to fill out and no daunting year-end tax returns, you can reclaim precious time. Hightekers not only simplifies your work life but also offers employment continuity, making it easier for you to secure loans or mortgages and providing access to benefits typically out of reach for IT contractors and self-employed workers. 

How to Choose A Management Company?

Not all management companies are created equal, so it’s crucial to carefully consider your options before you sign up to partner with one. Opting for a company that specialises in your industry can greatly benefit you compared to a generic umbrella company that handles multiple trades.

At Hightekers, we specifically focus on IT specialists, creating a tight-knit community of talent.    Our in-depth knowledge of the IT sector enables us to offer the best support for our IT freelancers, and we work together to help everyone reach top positions in their field. 

When selecting a management or umbrella company, ensure they meet all your needs, are fully tax compliant, and provide a level of service that keeps you satisfied as an IT contractor. 

Your success depends on choosing the right partner to support your freelance IT journey.

Choosing Hightekers as your management company will open the door to a world of opportunities. Click here to find out more.