Perm employee looking to transition into the contracting world

[JackD]

Hi All,

Appreciate any help and advice you can provide - I work in Information/Cyber Security and have always had permanent roles so far. I’ve always been curious about contracting and obviously the day rates are extremely appealing! I’m planning on uprooting to London in the near future, so this is a perfect time for me to take the leap.

I’m inundated with recruiters sending me roles on LinkedIn - but these are all perm roles as that’s the field I’m currently in, I don’t have much of a network in the contracting world, so my first question is, where’s best to find contracts? I specialise in Incident Response and Security Operations. Please can people recommend sites or recruiters they know of.

Secondly, I’m slightly naive on the IR35 inside/outside, but I think I have a good basic grasp now. In terms of setting up my own ltd company for outside - what’s required? What should I be prepared for?

Also, any other nuggets of wisdom you can share with me would be much appreciated!

Thanks all

[eek]

What's you notice period - contracts usually start within a week so 3 months notice isn't good.

[Lance]

Hi All,

Appreciate any help and advice you can provide - I work in Information/Cyber Security and have always had permanent roles so far. I’ve always been curious about contracting and obviously the day rates are extremely appealing! I’m planning on uprooting to London in the near future, so this is a perfect time for me to take the leap.

I’m inundated with recruiters sending me roles on LinkedIn - but these are all perm roles as that’s the field I’m currently in, I don’t have much of a network in the contracting world, so my first question is, where’s best to find contracts? I specialise in Incident Response and Security Operations. Please can people recommend sites or recruiters they know of.

Secondly, I’m slightly naive on the IR35 inside/outside, but I think I have a good basic grasp now. In terms of setting up my own ltd company for outside - what’s required? What should I be prepared for?

Also, any other nuggets of wisdom you can share with me would be much appreciated!

Thanks all

read the first timers guide over here -------------------------->>>>

As for finding roles, Cyber Security should be pretty easy to get roles right now. The easy way is to get your CV updated and uploaded to JobServe. Also set your LinkedIn profile to 'seeking new opportunities'.
Make sure CV and LinkedIn agree with each other and make sure relevant skills are prominent.
I wouldn't bother with a LTD company until you get an outside IR35 role. It only takes a day or 2 to get one setup so not a cost you need to concern yourself with now. If inside IR35 then it's just a job with an end date. Make sure you're aware of what umbrella companies do, and how to choose one.

[JackD]

What's you notice period - contracts usually start within a week so 3 months notice isn't good.

I’ve recently moved roles - my level/tenure at my previous place had 3 months. I’m relatively new into this role and wouldn’t normally be looking but as I’m relocating it’s the right time. So, my notice is currently 1 week, it’ll go up to 4 weeks in a couple of months if I’m still here

[JackD]

read the first timers guide over here -------------------------->>>>

As for finding roles, Cyber Security should be pretty easy to get roles right now. The easy way is to get your CV updated and uploaded to JobServe. Also set your LinkedIn profile to 'seeking new opportunities'.
Make sure CV and LinkedIn agree with each other and make sure relevant skills are prominent.
I wouldn't bother with a LTD company until you get an outside IR35 role. It only takes a day or 2 to get one setup so not a cost you need to concern yourself with now. If inside IR35 then it's just a job with an end date. Make sure you're aware of what umbrella companies do, and how to choose one.

I’m on my phone at the moment - not sure if you linked a noobs guide but I couldn’t see it. I did check the sticky’s before posting, but granted I may have missed it.

thanks for the advice re setting up limited companies. I’ve just updated my CV, I’ll create an account on JobServe and take a look around.

I’ve read a little bit about umbrella companies, in your view are they a positive or a negative? The take home pay for own ltd vs umbrella seemed drastically different

[WTFH]

I’m on my phone at the moment - not sure if you linked a noobs guide but I couldn’t see it. I did check the sticky’s before posting, but granted I may have missed it.

It's a link on the side bard:
https://www.contractoruk.com/first_timers

The take home pay for own ltd vs umbrella seemed drastically different

It is if you're comparing Outside IR35 via Ltd and using dividends etc, compared to inside IR35.
If you see somewhere offering a take home over 80%, it is most likely extremely dodgy evasion/avoidance that will come back and bite you. For a new contractor, starting out, I would strongly recommend using a good umbrella until you have built up a bit of a war chest.

[malvolio]

I’m on my phone at the moment - not sure if you linked a noobs guide but I couldn’t see it. I did check the sticky’s before posting, but granted I may have missed it.

thanks for the advice re setting up limited companies. I’ve just updated my CV, I’ll create an account on JobServe and take a look around.

I’ve read a little bit about umbrella companies, in your view are they a positive or a negative? The take home pay for own ltd vs umbrella seemed drastically different

"A little bit" is utterly useless. If you want to be a contractor, the first thing to realise is that being a contractor is your job, not being a security analyst. Learn to do it properly.

You really have to understand the difference between Ltd and Umbrella, they are not directly comparable. At it simplest, an umbrella will take the payment from the client, via the agency usually, sort out your personal taxes and pay you net, personally (other bits come off along the way as well). As far as tax is concerned you are an employee, with a few (a very few) employment rights. A Ltd Co is just that, a separate trading vehicle subject to a host of legal constraints that you have to operate as a director, from which can take share dividends and a salary (plus other variations we won't go into now).

With an umbrella you are an employee, with a Ltd your are emphatically not.

But if you don't properly understand IR35 and the impact that Section 10 will have on your income, stay with the umbrella option until you do. Apart from anything else a Ltd Co is worse than a chocolate teapot if you are inside IR35. And stop worrying about tax levels until you understand the whole landscape.

Guides are easily accessed from the main Forum website, the mobile version tends to lose bits.

[JackD]

It's a link on the side bard:
https://www.contractoruk.com/first_timers



It is if you're comparing Outside IR35 via Ltd and using dividends etc, compared to inside IR35.
If you see somewhere offering a take home over 80%, it is most likely extremely dodgy evasion/avoidance that will come back and bite you. For a new contractor, starting out, I would strongly recommend using a good umbrella until you have built up a bit of a war chest.

Thanks - I appreciate you sharing the link, I'm going to readup on the first timers articles this evening.

Is it common to take a step down in terms of roles for your first contracting role? There's massive discrepancies in the daily rates I'm seeing - they seem to be £400-1200/day for roles requiring similar experience/skillset to mine

[JackD]

"A little bit" is utterly useless. If you want to be a contractor, the first thing to realise is that being a contractor is your job, not being a security analyst. Learn to do it properly.

You really have to understand the difference between Ltd and Umbrella, they are not directly comparable. At it simplest, an umbrella will take the payment from the client, via the agency usually, sort out your personal taxes and pay you net, personally (other bits come off along the way as well). As far as tax is concerned you are an employee, with a few (a very few) employment rights. A Ltd Co is just that, a separate trading vehicle subject to a host of legal constraints that you have to operate as a director, from which can take share dividends and a salary (plus other variations we won't go into now).

With an umbrella you are an employee, with a Ltd your are emphatically not.

But if you don't properly understand IR35 and the impact that Section 10 will have on your income, stay with the umbrella option until you do. Apart from anything else a Ltd Co is worse than a chocolate teapot if you are inside IR35. And stop worrying about tax levels until you understand the whole landscape.

Guides are easily accessed from the main Forum website, the mobile version tends to lose bits.

I'll be sure to know the pros and cons of both a Ltd and Umbrella before making the leap - although I'm sure I'll also learn alot along the way.

If I'm honest, I don't see the appeal with an umbrella company - is that not against the appeal of going contracting? Ideally outside IR35, but if the role is inside, is this not then dealt with by the hiring company?

[eek]

I'll be sure to know the pros and cons of both a Ltd and Umbrella before making the leap - although I'm sure I'll also learn alot along the way.

If I'm honest, I don't see the appeal with an umbrella company - is that not against the appeal of going contracting? Ideally outside IR35, but if the role is inside, is this not then dealt with by the hiring company?

Hiring companies and agencies don't want the hassle - plus agencies derive benefits from a contract being outside Agency regulations which is 1 of the things that an agency can benefit from when they force you to use an umbrella (another 1 is kickbacks / PSL fees from the umbrella)