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Any reason not to consult on the side for a while?

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    Any reason not to consult on the side for a while?

    I've had ambitions of beginning consulting for a while now but didn't have enough saved up (and a young family) to do it with a reasonable amount of certainty. An opportunity has come up to begin consulting for around 10 hours per week at a fair rate. I was considering doing this for a while in addition to my permanent employment (but at different times, not dual dipping my time).

    I wouldn't actually need any of the money to withdraw as I'm already in the higher tax bracket. So I was considering just leaving the money in the company until i have a reasonable war chest in there to allow me to make the move fully.

    Obviously the company would have the same amount of overheads as people who are contracting full time (accountants costs, insurances (PII, PLI etc), ipse+ membership and other things I'm not thinking of right now). I've currently got costs at around £150/month with around £350 one off setup costs so that's not too bad. I'd obviously need to fund a laptop and additional things but a fair one comes out at just over £2k (convenient eh?).

    Other than that reduction in the profitability of the company is there a reason not to do this?

    My permie company are fine with me contracting as they're aware of my ambitions and I've checked this with them first.

    #2
    When you say other things you've got to be careful it's the right things to qualify.

    Do you really need to be spending 2k on stuff when you are only doing 10 hours a week?
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      Not initially at all, no. I obviously won't be using my permie company's equipment but I have a perfectly decent desktop at home and the role is 100% remote. I'd probably need to invest in a company laptop at some point as I present at events and use a fair few VM's which can eat up resources fairly quickly. I can use my (admittedly beefy) company machine at these events as they consider it 'personal development' but it would be mickey taking to then rock up and sell myself as a consultant using their hardware.

      It's a fine line I suppose with that one, I'm just trying to play it as safe as possible with stuff like this.

      Edit: Also, I'd like to be able to ramp this up slowly if possible with the ambition of it becoming full time. At some point I'd probably have to make the investment in hardware whether that was personally or though the company.
      Last edited by Burns; 1 March 2018, 16:08.

      Comment


        #4
        Originally posted by Burns View Post
        I've had ambitions of beginning consulting for a while now but didn't have enough saved up (and a young family) to do it with a reasonable amount of certainty. An opportunity has come up to begin consulting for around 10 hours per week at a fair rate. I was considering doing this for a while in addition to my permanent employment (but at different times, not dual dipping my time).

        I wouldn't actually need any of the money to withdraw as I'm already in the higher tax bracket. So I was considering just leaving the money in the company until i have a reasonable war chest in there to allow me to make the move fully.

        Obviously the company would have the same amount of overheads as people who are contracting full time (accountants costs, insurances (PII, PLI etc), ipse+ membership and other things I'm not thinking of right now). I've currently got costs at around £150/month with around £350 one off setup costs so that's not too bad. I'd obviously need to fund a laptop and additional things but a fair one comes out at just over £2k (convenient eh?).

        Other than that reduction in the profitability of the company is there a reason not to do this?

        My permie company are fine with me contracting as they're aware of my ambitions and I've checked this with them first.
        Out of interest, what are the £350 one off set up costs?

        Comment


          #5
          2K for a laptop? You an Apple fan boi then?

          I bought my Lenovo T450s for 750 notes and the only extra I've purchased is a 6 cell battery for £75.

          Since I'm bored doing documentation here's one I spec'd up for you.

          Fill yer boots.

          qh
          He had a negative bluety on a quackhandle and was quadraspazzed on a lifeglug.

          I look forward to your all knowing and likely sarcastic and unhelpful reply.

          Comment


            #6
            Originally posted by northernladyuk View Post
            Out of interest, what are the £350 one off set up costs?
            At the moment I have £266+VAT for IPSE+ and £50+VAT for company set up. I'm sure there's things I'm missing but I don't *yet* have an accountant to ask.

            Comment


              #7
              Originally posted by quackhandle View Post
              2K for a laptop? You an Apple fan boi then?

              I bought my Lenovo T450s for 750 notes and the only extra I've purchased is a 6 cell battery for £75.

              Since I'm bored doing documentation here's one I spec'd up for you.

              Fill yer boots.

              qh
              Yeah, looks a fair machine. The noticeable differences is that I'd specced 32GB RAM (I'm a SQL Server guy), an office subscription and a 2TB SSD (again, for those VM's). The £2k did also include a monitor to use it at around £150 but no big deal to start with.

              Comment


                #8
                If your confident that his will be a long term thing then go for it!

                However think if this current part time client bins you for whatever reason you will struggle to find another part time client. Would you then simply close the company?

                Also think about burning out. 10 hours doesn’t seem a lot but it adds up on top of a permie role. And you may end up creeping into your 9-5 time at least your focus will.

                Just some considerations

                Comment


                  #9
                  Originally posted by Burns View Post
                  At the moment I have £266+VAT for IPSE+ and £50+VAT for company set up. I'm sure there's things I'm missing but I don't *yet* have an accountant to ask.
                  Small point. IPSE+ is a recurring annual cost, not one off.

                  Comment


                    #10
                    Do it, no brainer if you can balance the work load. I'm balancing multiple clients and the financial rewards are great - just don't stretch yourself too far and make sure you can deliver.

                    A £2K setup is neither here nor there, totally legit business expense - however, lots of contractors think it's free equipment - it will still eat into your profits. Try Pcspecialist or similar if you need a bespoke beast.

                    This might be the opening into bigger and better consultancy gigs. You'll kick yourself for not trying. What's the worst thing that can happen, egg on your face for underperforming?

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