Contracting - go for higher rate or repeated business?

[pr1]

The irony is killing me......

morning, late start today?

[fool]

The main issue is you should use a separate LTD if you are going to do this, otherwise it can become very messy.
Obviously, if you hold multiple directorships, HMRC tend to take a much close interest in you.

Indeed, don't let a property bust bankrupt your contractor Ltd and don't trade while insolvent or they'll happily lift the veil.

The point is you don't know that when you first consider the option, he's just mulling things over loudly for some reason.

Better to teach than berate.


Oh, btw diseasex, whilst I did make that move to London and am billing those big rates, I took a lot of risk doing it. Whilst it can work for you if you have the right amount of hustle, chrisma and a bit of luck, it can also end poorly. Keep in mind, where there are winners, there are also losers.

[diseasex]

Indeed, don't let a property bust bankrupt your contractor Ltd and don't trade while insolvent or they'll happily lift the veil.

The point is you don't know that when you first consider the option, he's just mulling things over loudly for some reason.

Better to teach than berate.


Oh, btw diseasex, whilst I did make that move to London and am billing those big rates, I took a lot of risk doing it. Whilst it can work for you if you have the right amount of hustle, chrisma and a bit of luck, it can also end poorly. Keep in mind, where there are winners, there are also losers.

Thanks, I will see how it goes after this contract ends in March.
I'm happy with the risks, I left permie, stable job to achieve something in my life, and take more aggressive approach to reach my goals. I can always go back...

[MrMarkyMark]

The point is you don't know that when you first consider the option, he's just mulling things over loudly for some reason.

If you don't know, then you take the time to go and find out .
It seems he is doing more than just "mulling things over", he is already doing it

[diseasex]

If you don't know, then you take the time to go and find out .
It seems he is doing more than just "mulling things over", he is already doing it

I said i have funds on ISA, not on LTD (yet). And before investments become significant I will separate that to second LTD, I said that too

[LondonManc]

The point that is being alluded to is very simple. The SIC code that your company is registered against represents what industry sector your business is trading in. If you start holiday letting from your Ltd that has an Information Technology SIC code, HMRC will send the boys round.

[MrMarkyMark]

I said i have funds on ISA, not on LTD (yet). And before investments become significant I will separate that to second LTD, I said that too

Sounds like you know all in the ins and outs of it then, so, no problem

[CalamityJane]

OK, the danger is that his company will cease to be an IT company, as it will start to be seen as an investment company. Different rules and regulations etc. etc. therefore mixing the two is not recommended.

Here's some stuff to get you started:-

http://forums.contractoruk.com/accou...-property.html

https://www.google.co.uk/search?q=bu...spv=1&ie=UTF-8

Now, that is what I call being helpful.

[WTFH]

I've been slagged off on here for baiting and for trying to crush someone's dreams. All I've tried to do is get him to think about his dreams and to work out how he is going to turn them into goals. Also to understand what the dreams actually are.


When I was 25 I set a target of being debt free by 50. No mortgage, no loans, nothing. At that time I had just bought my first house and had a few loans as well. I've moved house twice since then and am in one that cost 15x the price of the first. I'm still on target to be debt free by 50.


Along the way I have taken out life assurance policies, investments, shares, savings schemes, ISAs, premium bonds, etc. Some have lost money or returned close to the amount put in, some have made money.


I've also had friends who took out big mortgages and juggled money around to pay the bills each month. One of them passed away, leaving his wife with his bills but little means to pay them. Another was being chased by bailiffs a few years ago because he was borrowing to pay bills.
But some of them have also been shrewd with their money, paying for good accountants and making careful investments.


I still have dreams e.g. planting a vineyard, having a 2 seater vintage sports car, going on a grand tour with my wife and dog, making my own gin.
Some of my dreams have dropped off the list - the childhood one of being an F1 driver. In my 20s wanting to be a rock star and marry a supermodel (I managed to play a few gigs and dated a model but neither were as much fun as I dreamt they would be). In my 30s I wanted to own a property in a ski resort. That's been ticked off.


There's nothing wrong with dreaming - the difference between childhood dreams and adult ones should be the reasoning and planning behind them and the ability to take advice from others on how to achieve them.

[CalamityJane]

I've been slagged off on here for baiting and for trying to crush someone's dreams. All I've tried to do is get him to think about his dreams and to work out how he is going to turn them into goals. Also to understand what the dreams actually are.


When I was 25 I set a target of being debt free by 50. No mortgage, no loans, nothing. At that time I had just bought my first house and had a few loans as well. I've moved house twice since then and am in one that cost 15x the price of the first. I'm still on target to be debt free by 50.


Along the way I have taken out life assurance policies, investments, shares, savings schemes, ISAs, premium bonds, etc. Some have lost money or returned close to the amount put in, some have made money.


I've also had friends who took out big mortgages and juggled money around to pay the bills each month. One of them passed away, leaving his wife with his bills but little means to pay them. Another was being chased by bailiffs a few years ago because he was borrowing to pay bills.
But some of them have also been shrewd with their money, paying for good accountants and making careful investments.


I still have dreams e.g. planting a vineyard, having a 2 seater vintage sports car, going on a grand tour with my wife and dog, making my own gin.
Some of my dreams have dropped off the list - the childhood one of being an F1 driver. In my 20s wanting to be a rock star and marry a supermodel (I managed to play a few gigs and dated a model but neither were as much fun as I dreamt they would be). In my 30s I wanted to own a property in a ski resort. That's been ticked off.


There's nothing wrong with dreaming - the difference between childhood dreams and adult ones should be the reasoning and planning behind them and the ability to take advice from others on how to achieve them.

That's a very good defence. Have you shared this before?

Because generally, people are shot down for talking about their dreams. Sure, the OP hadn't thought of everything, and was getting ahead of himself, but he incited a level of scorn that didn't make sense to me.

Contracting is a good earner and anyone who can do it well probably has more brains than your average permie - so I take that into account when someone like the OP comes on here talking about his dreams.

He's probably persistent, resourceful, intelligent and hard working - as well as being grandiose and ambitious.

He will get there in the way that all successful people got there - including Branson - by being optimistic enough to be blinded to just how long and hard the journey ahead is.

Believe me - it's a good thing, oftentimes the cynics realise just how hard it will be and so they don't take the first step.

Life will keep kicking him in the behind as he trundles slowly to where he's going, and he'll become a lot less fanciful and a lot more real.

This forum has given him a small kick in the behind, which will propel him towards where he's trying to go. All I'd question is why we need to mock / scorn him, doubt his abilities as a contractor, just because he has big goals.

And that question isn't specific to you, WTFH, if only because I envy your username.

It's a general query around the cynicism on this forum. We, most of us, make a LOT more money than the average person. A lot more.

I'm not saying we don't earn it, but what right have we to be particularly cynical / sceptical? We've already done what a lot of people can't do, and we are paid well for doing so.

If someone wants to use their brains to do something other than sitting in front of a screen all day, then I'm behind that attitude 100%.