Thinking about moving into contracting and would love some helpful advice

[cryptic]

Hello all

I have been working in my current job for about 5 years now and feel like I would like a change and to develop some of my other I.T skills (database development and design which is one aspect of my job that I really enjoy). I am considering doing some contracting work to help me to do this whilst still working at my 9-5.

I have just started to consider to actually do this although have been thinking for some time about going down the whole contracting route. In terms of legal/tax issues what would I have to consider? Before I started my reading I was under the impression that I could invoice the client and prior to the end of the tax year pay the additional tax and ni if applicable. Are you able to do this? The jobs that I would take on intially whilst still in full time employment would probably be simple small jobs that dont take long in terms of man hours to do - if i can find such jobs! If the contracting took off then I would probably leave my current role and set up my own limited company.

How competeitive is the database development market from your experinces? I was thinking I would start charging £250per day intially (which is drastically less then what is charged for my services currently but I want to offer a fair service and offer good value esp at the start whilst I find work and build on clientele) do you think this daily rate is fair? I can provide other services besides database development - but what other skills would be useful to have?

Anything else to consider - i know that there will be lots! I would like to start putting things into motion in september so really want to get my brain thinking over any potentiel issues/problems etc...

If anybody has any useful hints/tips/advice regarding my questions above or anything that will help me into my contracting journey (if i decide to go down this path) will be greatly greatly appreciated!

crypt.

[jmo21]

While not impossible to do with a full time job, it will certainly be difficult - you might want to check your permie employment contract to see what it says about doing "other work" (some people might say ignore this however)

Finding little "web site work" type roles would certainly be a little easier to find and do in the evenings than database work I would suspect.

My suggestion would be just go in with both feet and find a proper contract, and chuck the day job!

[northernladuk]

Have a read of the stickies and all the links down the side. There is a wealth of information there from first time guides to indepth articles and accountacy advice would be the best start.

My suggestion would be just go in with both feet and find a proper contract, and chuck the day job!

Although not strictly wrong this is about as much use as a choclate firegaurd.
Make sure you are financially stable first. It isn't impossible to be out of work 2-6 months a time at the moment. Make sure your warchest can suffer this first. Don't kid yourself either. It has to exist. No borrowing money here or credit cards.

Look at your skills and on jobserve and see if there is any jobs on there that you CAN do, not are good enough or can learn, thats permie mentality. You have to be able to deliver from day one. That will also give you an idea idea of rates and how much travelling you have to do. You may have to take a gig the other side of the country.

[v8gaz]

first step - read the free PCG guide to contracting - Home | PCG

[cryptic]

Hello and thank you for all your replies!

v8gaz >> That guide looks great! Will take a look over it in the next few days! Thanks for that!

northernladuk + jmo21 >> Thanks too guys! Although I am finacially stable I want to get a taste of doing some contracting work first before making any major career decisions - so packing in the day job just yet isnt really an option! I really want to plan as much as one can before taking that leap, build my confidence and get to a point where I have work and money flowing in. Ive got some ideas as to how to get work but it will take in my estimation approx 3-6 months before I may reach the stage of leaving my day job if my ideas kick off! Ive already had people interested in me doing some work so may start on those jobs to test the waters.

Do you guys think its safe to work as a sole trader during the "testing the water" time then? These jobs will be simple, short term i.e. no longer than a couple of weeks max. I will read the guide posted by v8gaz as well as check on this site, but if anyone has any helpful input to this will be much apprecaited! Ohw...another idea is to maybe do the first one or two jobs on the house - these are people that i know, the jobs are pretty small and simple and if they like what they see it could potentially lead to lots more work with them and others in the future....

Crypt.

[Fred Bloggs]

If you take work through an agency you cannot be a sole trader.

[jmo21]

Hello and thank you for all your replies!

v8gaz >> That guide looks great! Will take a look over it in the next few days! Thanks for that!

northernladuk + jmo21 >> Thanks too guys! Although I am finacially stable I want to get a taste of doing some contracting work first before making any major career decisions - so packing in the day job just yet isnt really an option! I really want to plan as much as one can before taking that leap, build my confidence and get to a point where I have work and money flowing in. Ive got some ideas as to how to get work but it will take in my estimation approx 3-6 months before I may reach the stage of leaving my day job if my ideas kick off! Ive already had people interested in me doing some work so may start on those jobs to test the waters.

Do you guys think its safe to work as a sole trader during the "testing the water" time then? These jobs will be simple, short term i.e. no longer than a couple of weeks max. I will read the guide posted by v8gaz as well as check on this site, but if anyone has any helpful input to this will be much apprecaited! Ohw...another idea is to maybe do the first one or two jobs on the house - these are people that i know, the jobs are pretty small and simple and if they like what they see it could potentially lead to lots more work with them and others in the future....

Crypt.

If you are confident of getting this work then more power to you, it sounds like a great way to start!