Should You Stay or Go in January 2025? Top 3 Job Considerations for IT Contractors

As the new year kicks off, many IT contractors find themselves debating whether to stick with their current role or explore new opportunities. The allure of fresh projects and promises of higher pay can be tempting, but jumping ship isn’t always the best move. To help you navigate this decision, here are three critical factors to consider before making a change.

 

1. Money Talks, But It’s Not Always About More

The first question to ask yourself: Are you being paid enough?

It’s no secret that January often brings enticing job offers with promises of higher rates. However, a bigger paycheck isn’t a guarantee that the grass is greener. A new role might come with hidden costs, less favorable tax implications, or fewer allowable expenses.

Before you make a decision, take a close look at your finances. Consider your current rate and benefits, and factor in any potential tax changes coming in April. A proper cost-benefit analysis will help you determine whether chasing a higher headline rate is worth the effort—or if you’re better off staying put.

 

2. Project Lifetime: Look Beyond the Surface

Are you sure your current gig has reached its natural end?

The market is full of shiny new tech projects at the start of the year, but don’t be too quick to discount your current role. Sometimes, existing projects have the potential for extensions or even exciting follow-up phases that could boost your portfolio.

If you’re working with a sought-after client or a well-known tech brand, it might be worth staying on longer. A strong CV featuring a longer tenure with prestigious clients can often outweigh a string of short stints. Ask yourself whether leaving now might mean missing out on long-term benefits.

3. IR35 Status: Is the Grass Really Greener?

When evaluating new opportunities, don’t forget to consider their IR35 status.

The IR35 rules can significantly impact your take-home pay and how you operate as a contractor. While it’s tempting to leap into roles that appear more lucrative, always check if they’re inside or outside IR35. The compliance burden for inside-IR35 roles can erode much of the financial gain from a higher rate.

Take the time to thoroughly research the market, but remember: a bird in the hand is worth two in the bush. Leaving a secure role for an uncertain one can sometimes backfire, especially if the new position doesn’t live up to its promises.

 

Final Thoughts

Deciding whether to stay or move on as an IT contractor is never a simple choice, especially at the start of the year when opportunities abound. By weighing up your financial situation, assessing your current project’s potential, and carefully evaluating the market (including IR35 implications), you can make an informed decision that aligns with your career goals.

Remember, patience and strategic thinking often pay off more than impulsive decisions. The right opportunity will come—whether it’s sticking with what you’ve got or taking the leap into something new.