Considering leaving Full Time and start contracting

[CFC]

Hello all, and thanks in advance for your input. I'm a fairly young guy ( over 30 but under 35 ) with plenty of years experience in the SaaS consulting world. I've been approached by different recruiters quoting 600£+ and expenses to work on different projects as a contractor. It would be a pretty big hike compared to my current salary ( 80-90k per annum ), but having never done this I have certain concerns.

In this industry, I would be working on short term projects ( 1 year max in general ), but wouldn't be able to take on more than 1 client at a time. It is also kind of hard to have the idea of bringing in a replacement, as the knowledge of the products is fairly niche, and the market itself doesn't have many people available to do it. Would these facts cause issues when it comes to IR35 inside or outside ?

Do you think it would be best to take on abroad contracts, as some contracts in EU countries were quoted by the recruiter as well, because of all this confusion around IR35 , or would it potentially cause more issues down the line ?

[gnarledcontractor]

Hello all, and thanks in advance for your input. I'm a fairly young guy ( over 30 but under 35 ) with plenty of years experience in the SaaS consulting world. I've been approached by different recruiters quoting 600£+ and expenses to work on different projects as a contractor. It would be a pretty big hike compared to my current salary ( 80-90k per annum ), but having never done this I have certain concerns.

In this industry, I would be working on short term projects ( 1 year max in general ), but wouldn't be able to take on more than 1 client at a time. It is also kind of hard to have the idea of bringing in a replacement, as the knowledge of the products is fairly niche, and the market itself doesn't have many people available to do it. Would these facts cause issues when it comes to IR35 inside or outside ?

Do you think it would be best to take on abroad contracts, as some contracts in EU countries were quoted by the recruiter as well, because of all this confusion around IR35 , or would it potentially cause more issues down the line ?

Firstly, if you haven't already, read this - First Timers Guides - for IT Contractors | Contractor UK and clue yourself up on all that you'll need to start contracting. However, IMHO, you've chosen a somewhat challenging time to start this. The first thing to say is take what recruiters say with a pinch of salt. You haven't landed that first gig yet and you should be doing your research and starting to behave like a business rather than thinking like a staff member. Also make sure that you read some of the threads on here talking about the 2020 IR35 changes and how they will impact most if not all of us.

[PCTNN]

I wouldn't leave a 90k permie salary in these times of uncertainty.

Wait 6 months and see if they're sill approaching you with contract roles. If they are, then pull the trigger and good luck to you.

[northernladuk]

You're 30 odd on 90k? F me.

No chance I'd be giving that up right now.

[GhostofTarbera]

Once you have the contract signed/sealed and delivered I would go for it.

But the agent won’t deliver I’m afraid as his lips are moving


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[CFC]

Thanks for the feedback guys, really appreciate it.

My idea about contracting would be to do it for at least 1-2 years, in order to save enough money to go up the property ladder, as even with a high salary, it takes a while to do so. My main concern, like you guys have also pointed out, is IR35 and the changes to the legislation, because of the niche nature of the job. Would it be possible, if I would take a UK based contract, to point a clause in the contract that the employee would bear the cost if there is a blanket decision to place all contractors inside IR35 ? If it my contract would be looked upon separately, then it would be easier to argue the decision, but I'm more thinking in the event of a move similar to what the banks have started doing to cover my potential earnings. Ever seen such a clause or similar ones implemented ?

[ChimpMaster]

Contracting is ruined. I can't believe you're thinking of getting into this now. At £90k a year I wouldn't go contracting for less than ~£1k/day and even then I would question the merits.

[CFC]

Contracting is ruined. I can't believe you're thinking of getting into this now. At £90k a year I wouldn't go contracting for less than ~£1k/day and even then I would question the merits.

Is it really that bad ? Does the IR35 legislation also affect contracts located abroad ? Could get some contracts in Paris, according to the recruiter.

I used an online calculator and at that rate, I would be ending up around 2.5k extra per month in my pocket. Could get even a little bit higher if I put something in the pension pot, pre-tax from the company, at least this is what I understood from reading.

[BR14]

Is it really that bad ? Does the IR35 legislation also affect contracts located abroad ? Could get some contracts in Paris, according to the recruiter.

I used an online calculator and at that rate, I would be ending up around 2.5k extra per month in my pocket. Could get even a little bit higher if I put something in the pension pot, pre-tax from the company, at least this is what I understood from reading.

does this account for the costs of servicing the contract?
travel, accommodation,subsistence, etc?

[GhostofTarbera]

Considering leaving Full Time and start contracting

Is it really that bad ?.

Worse I’ve ever seen the market (by warp factor 10) since I started in 1999

Get your potential contract signed sealed and delivered before you hand in notice


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