Perm employee looking to transition into the contracting world

[Lance]

They’re definitely not all for the same experience level, I’m seeing analyst at 4-600, specialist at 5-800 and lead roles at 650-1200 (1200 was the highest, being this role: https://www.jobserve.com/gb/en/mob/j...073E127&page=1)

I’m currently in a lead position, but happy to start my first contract at the specialist level.

that "role" (800-1200) is very wide for a good reason. They are struggling to find people who have setup a SOC.

£800 will get them someone who can build out a SIEM and make it operationally ready.
£1200 will get someone who can setup the entire operation (people, processes, recruitment, auditing, compliance).

The problem the agency will have is loads of £800 a day chancers asking for £1200 a day. But they'll have a pretty good idea of what skills are needed for the different rates.

[rocktronAMP]

My dad is bigger than your dad

Rich Dad, Poor Dad?!

Or maybe that's non-PC now, since we are in the year 2022, we should be all inclusive: Rich Mum, Poor Mum.

Seriously, though, as a new contractor you will learn hard and fast that the agents only think about the green, the Benjamins, the Dukes, whatever.

If you are good as you think you are, Jack, then fair dues. The moment your client has doubts in your ability, or perhaps, the project budget runs out, then you will find out that contractors are the first level of people then that have their contract terminated. Ask anyone who work inside investment banking IT in London.

My advice to you (and I even I should have followed this advice, but rarely did though) is always be looking.

[WTFH]

My dad is bigger than your dad

That's true son
My dad is about 1.72m, I'm 1.80m

[cannon999]

Rich Dad, Poor Dad?!

Or maybe that's non-PC now, since we are in the year 2022, we should be all inclusive: Rich Mum, Poor Mum.

Seriously, though, as a new contractor you will learn hard and fast that the agents only think about the green, the Benjamins, the Dukes, whatever.

If you are good as you think you are, Jack, then fair dues. The moment your client has doubts in your ability, or perhaps, the project budget runs out, then you will find out that contractors are the first level of people then that have their contract terminated. Ask anyone who work inside investment banking IT in London.

My advice to you (and I even I should have followed this advice, but rarely did though) is always be looking.

It depends on what you are doing in IT. If you are a developer - you can find the next contract with your eyes closed.

[JackD]

Rich Dad, Poor Dad?!

Or maybe that's non-PC now, since we are in the year 2022, we should be all inclusive: Rich Mum, Poor Mum.

Seriously, though, as a new contractor you will learn hard and fast that the agents only think about the green, the Benjamins, the Dukes, whatever.

If you are good as you think you are, Jack, then fair dues. The moment your client has doubts in your ability, or perhaps, the project budget runs out, then you will find out that contractors are the first level of people then that have their contract terminated. Ask anyone who work inside investment banking IT in London.

My advice to you (and I even I should have followed this advice, but rarely did though) is always be looking.

I haven’t made out I think I’m great… or I haven’t meant to. Obviously anything can happen and it’ll be my first role contracting.

I’ve just put my name forward for a role at ~£650 a day… Ill see what comes from that application.

It’s inside IR35 and through an umbrella, it’d work out at roughly double the take home pay as my perm role now if I’ve used the calculators correctly..

Ideally my first role would be extended from 6 to 12 to give me a feel for it and to set myself up properly for an outside role afterwards.

I do have a question about being paid though- can I expect payment from the agency/umbrella as regular as I’m used to? I’d assume it’s still monthly, but from experience would you say you’ve been paid on the same date without hassle?

[northernladuk]

Ideally my first role would be extended from 6 to 12 to give me a feel for it and to set myself up properly for an outside role afterwards.

Never set an expectation of extensions else you are gonna get unstuck. You contract is as long as it's notice period, and even not that. You can get walked on the day according to your contract. Getting giddy and planning on long contracts and extensions never ends well.

And contracting is about running your company, finding clients, selling your experience. 6 to 12 months on site is just doing the same as a permie and nothing to do with contracting so at best will give you a feeling for that client and nothing more. If you want a feeling for contracting you need a raft of 3 monthers so you can go through all the activities that a contractor will do not a permie. Our skills are finding work, running our companies, getting up to speed quick, delivering better than perms etc. Doing to do at the client desk is the easy part. Even the perms can do it.

I do have a question about being paid though- can I expect payment from the agency/umbrella as regular as I’m used to? I’d assume it’s still monthly, but from experience would you say you’ve been paid on the same date without hassle?

You assume wrong again. It varies. Some agencies will factor payments so it could be anything from 7 days to 30 days. Umbrellas will be monthly as you are employed.

And expect a lot of hassle. Late payments are far too common. Might be missed payrolls by the agency, none payment by the client (contract will say you don't get paid until the agency does), mistakes by both client/agency, disputes. There are more reasons not to be paid on time than to be. It's part of running a business.
I say expect and common. It's not like every month and you could go awhole gig without it being a day late, but your next one could be problematic every payment cycle. These things happen.

EDIT : I'm putting a very negative spin on everything because it's the reality. Everyone can contract if it goes well, but it doesn't always. If you aware of, and have considered the situation when it goes wrong then you'll be much better prepared. You wouldn't believe the meltdowns and panic when some people have the slightest hardship. If you want to see how an idiot deals with contracting and struggles at every twist and turn then read Pyschocandys posting history. Don't be that person.

[rocktronAMP]

And expect a lot of hassle. Late payments are far too common. Might be missed payrolls by the agency, none payment by the client (contract will say you don't get paid until the agency does), mistakes by both client/agency, disputes. There are more reasons not to be paid on time than to be. It's part of running a business.
I say expect and common. It's not like every month and you could go awhole gig without it being a day late, but your next one could be problematic every payment cycle. These things happen.

Also please ask the agency and umbrella company about the payment terms, should you win the gig

"You will be paid in one month arrears" (typical for fixed-term contracts) "subject to full payment of umbrella XYZ by end client-co ABC"

Ergo work, I performed for client-co in the entire month of January 2022 is not paid by the umbrella company until 28th February 2022 or something like that.
Ergo ergo you will need a 1 - 2 month war chest to cover the mortgage, kids school fee, rent, etc ...

[IsayIsayIsay]

I've had a different experience. Weekly invoicing and payment, no issues. Had the choice for monthly, but chose weekly as building up the coffers. Never had an issue with payments or timesheets being signed off etc. Get yourself a good FCSA accredited umbrella company, I can recommend Lucy at Clarity (I think she posts/writes articles on here), very professional, walk you through the process, online portal.

All that being said, it is a case of being prepared for when you don't get paid, things do go wrong. I think I've been lucky with my first one, and I've just heard I've got an interview for another contract with a 30% increase in day rate... fingers crossed!

[hobnob]

Umbrellas will be monthly as you are employed.

I've been through 3 umbrellas so far, and they all paid weekly (which matches how I submitted my timesheets). Some might pay monthly, but it's not a blanket rule.

[northernladuk]

I've been through 3 umbrellas so far, and they all paid weekly (which matches how I submitted my timesheets). Some might pay monthly, but it's not a blanket rule.

Oh interesting. My bad. Thought I was monthly last time I was through a brolly but must admit I can't remember if that was my choice or the only option.