New to contracting, please help

[rb51]

hi all,

New to contracting....

I have been working as Infrastructure Analyst/Engineer - 3rd Line (Herts/London) permie for whole career. Mainly on VMware/Windows/Storage...My last job was getting boring so I decided to join another company, which is/was horrendous/terrible (still on probation - 1x week notice). I have just been offered a contract of 300/d (so desperate to leave that thought I wouldn't even get 300/d in London; should have tried 350/d). Basically it is a short 2x month (with possibility to extend) contract. Central government, via big agency.

It seems that the market is quite competitive at the moment, but I feel that if I do a good job I open a door and when they need someone again they might contact me instead of advertise the position (just guessing, as I am new to contracting).

In terms of maximising opportunities, which sort of strategies should I be looking at? Register with every single agency, ring them to discuss my profile? If I open a Ltd company now, and let's say stay out of work for > 6 months would that be a bad move?

I am looking at retraining and get certs in Linux, AWS, etc (although need the commercial hands-on experience).

I would appreciate comments, suggestions, past/present expiriences, etc.

rb51

[northernladuk]

You need read all the threads about the public sector. It's highly likely you are going to get taxed like a permie so that 300 a day that sounds so good suddenly becomes very disappointing.

[northernladuk]

Have a look at a calculator like the one below. Pick 'inside' for a Public Sector gig.

Remember when the contract ends you won't be earning a penny.

[rb51]

You need read all the threads about the public sector. It's highly likely you are going to get taxed like a permie so that 300 a day that sounds so good suddenly becomes very disappointing.

I will read the PS threads....

Have a look at a calculator like the one below.

Remember when the contract ends you won't be earning a penny.

During interview I was told that rate was being split 50/50 between agency and client. Does it mean that I will take the hit and be inside IR35?

For this initial contract of 2x months, would you guys recommend using Umbrella or to open LTD??

I understand that regardless of Umbrella/LTD, I will have to pay insurance: QDOS - PI(1mi) 159 + PL(1mi) 51 + EL(10mi) 48 = £258/y - Cover for 1 person - 50k-100K TO

Problem is that my currently permie (£44K) role is sooooooo boring and for 2x months I have developed/added nothing in terms of skills. Hence desperation to leave for anything really.

[malvolio]

I will read the PS threads....




During interview I was told that rate was being split 50/50 between agency and client. Does it mean that I will take the hit and be inside IR35?

For this initial contract of 2x months, would you guys recommend using Umbrella or to open LTD??

I understand that regardless of Umbrella/LTD, I will have to pay insurance: QDOS - PI(1mi) 159 + PL(1mi) 51 + EL(10mi) 48 = £258/y - Cover for 1 person - 50k-100K TO

Problem is that my currently permie (£44K) role is sooooooo boring and for 2x months I have developed/added nothing in terms of skills. Hence desperation to leave for anything really.

It will be inside IR35, so your £300 a day will drop very quickly to somewhere around £200 with no allowable expenses. £200 a day in turn will return roughly the same net pay as a £24k a year salary if you manage to work 240 days or more.

Sure this is a good idea?

[eek]

It will be inside IR35, so your £300 a day will drop very quickly to somewhere around £200 with no allowable expenses. £200 a day in turn will return roughly the same net pay as a £24k a year salary if you manage to work 240 days or more.

Sure this is a good idea?

£200x240=£48000 - not £24000 you need to check your maths...

Umbrella Company PAYE Calculator | Contractor Umbrella states that £1500 a week returns £903.24 after tax and umbrella fees. and that is before expenses which you will not be able to claim as this is a public sector contract and therefore is most likely to be inside IR35 come April 6th..

Mind you £903.24*40 weeks is still £36k after tax a year which isn't to be sniffed at if train fair isn't too expensive...

[cojak]

Cloud - Azure or AWS is where it's at these days.

I'm afraid that infrastructure where you get your hands dirty building stuff is a dying trade these days (unless you get a job at one of the regional centres owned by a cloud provider).

I would advise reskilling on cloud; good cloud specialists are a bit rare at the moment. This will change but you're in at a good time to benefit I reckon.

See here https://www.microsoft.com/en-gb/lear...aspx?cid=20533

[northernladuk]

Hence desperation to leave for anything really.

IMO this is the wrong reason to go contracting. Go in unprepared and you'll be even more desperate when you are out-of work for a few months and no income.

[malvolio]

£200x240=£48000 - not £24000 you need to check your maths...

No I don't. I'm talking about effective net take home after all the stuff you have to pay for yourself that an employer takes on as cost of employment. But thank you for destroying the basic argument, that £300 a day is not £44k a year.

Come to that, most expenses are not allowable through an umbrella regardless of IR35 (which doesn't apply to an umbrella anyway since you're an employee) so that's just another red herring.

But apart from that...

[eek]

No I don't. I'm talking about effective net take home after all the stuff you have to pay for yourself that an employer takes on as cost of employment. But thank you for destroying the basic argument, that £300 a day is not £44k a year.

Come to that, most expenses are not allowable through an umbrella regardless of IR35 (which doesn't apply to an umbrella anyway since you're an employee) so that's just another red herring.

But apart from that...

So make that point clearly using words and explain to the OP what you think he is losing out on rather than writing a mathematical statement that doesn't make any sense with no explanation of why you've written it...

Heck I couldn't understand the point behind it and I've years of experience deciphering your posts. A new poster wouldn't have a chance....