This is step 11 of our guide Contracting in the UK.
Your initial contract will be for three to twelve months. After that your client might offer you a renewal for a further number of months. At this stage you will have the chance to negotiate your contract renewal and increase your rate or improve your contracts terms.
Sometimes clients might offer you an early contract renewal. Whilst this might seem advantageous from a security point of view your bargaining position is weaker in terms of trying to negotiate a better contract rate.
Taking time off for holidays when contracting is similar to permanent employment, except you can now take more days off! Plan well to ensure there is minimal downtime surrounding your holiday periods. Taking holidays between renewals can be a good way of doing this.
Finally, whilst you are earning more money contracting you might need a mortgage or pension to invest some of that hard earnt money.