First Ever Contract.......scared.....

[chef]

I don't know who Hector is - should I? I guess you mean HRMC?

Hector the Tax Inspector

[northernladuk]

Hope you have a good pot of money set to one side to cover the long spells you are out of work!!

[Rivendell]

Hope you have a good pot of money set to one side to cover the long spells you are out of work!!

no - but then when I have friends with similar experience in the same neck of the woods who have not been out of work for more than a month in over 3 years, why would I need one?

EDIT: sorry, slightly bullish reply, I'm just a bit tetchy because this is a difficult decision and I'm really looking for reasoned advice so I can properly assess the risks - and not alarmist stuff like above.

[lukemg]

IF you know there is a market for your skills AND you can talk your way into contracts (not through people you already know) then go for it, you will regret it otherwise and even if it doesn't work out - it won't be your last job.
You sound young, hopefully with less to lose, take some risks now before the weight of responsibilities make it impossible. I could not believe companies were paying me so much for contracting that I kept my expenses same as when I was perm and stashed the rest just in case.
After a few years of getting contracts I relaxed and it was quite pleasant to spend most of the pot I had built up on a Porsche 911. No perm job I could get at that time would have enabled that to happen !!

[BlasterBates]

If you need to pay a mortgage I would be sure about the market first.

Have you seen this?

http://forums.contractoruk.com/busin...ml#post1197824

I would at least wait for an offer of a contract before you resign.

If you get one easily then you should be OK.

[northernladuk]

no - but then when I have friends with similar experience in the same neck of the woods who have not been out of work for more than a month in over 3 years, why would I need one?

EDIT: sorry, slightly bullish reply, I'm just a bit tetchy because this is a difficult decision and I'm really looking for reasoned advice so I can properly assess the risks - and not alarmist stuff like above.

Well I would happily stick neck my neck out and say your friends are small and rare set. I also know some people that have been in work for a long periods but I also know alot of people who have been out for a a few months a time if not more. Check out General thread and you will see some horror stories here.

You need to look at worst case. Rose tinted spectacles are all very nice but they don't keep your house or your car when you have a dry patch. If you take a worst case scenario then you can't go wrong. If you ask why should you need a warchest then I will be visiting the auctions when your house comes up very soon.

[chef]

I'm just a bit tetchy because this is a difficult decision and I'm really looking for reasoned advice so I can properly assess the risks - and not alarmist stuff like above.

You asked for advice because you're nervous, northernlad and I both simply pointed out that having money for the hard times is a must before you take the big jump in our opinions and I certainly wouldn't class it as "alarmist". It's a simple fact that I wouldn't recommend you take such a big gamble if you have no savings to back you up especially with a "hefty CSA payment" to make regularly. We're not your parents or significant other who are here to blow sunshine up your @ss and massage your ego, if you don't like what you hear then don't ask the questions and as I've said to several other newbie wannabe's over the years, you need to develop a thick skin in contracting as you're looking after yourself.

You said your friends have not been out of work for more than a few months in over 3 years and they do the same as you, erm, so if you were an employer and looking to hire someone would you go for the new guy who has never contracted before OR would you go for the 3 guy with 3+ years experience? Quite possibly the reason they haven't been out of work is because of that 3 years experience they gained during the good times and it's now paying dividends during the bad??? But then I could just be being "alarmist"..

You have got 2 months saved up haven't you? 1 month for the first month you work, then the other month for the 30 day payments terms as detailed in your contract? Oh and then there's travel expenses and accomodation expenses for those 2 months aswell, plus 2 months worth of normal personal outgoings and things?

Alternatively if you don't like my response then how about this:

"ahh wow, well done on thinking of moving into contracting, don't worry everyone there is sooo nice and sweet, agencies are lovely and never try to screw you, clients are great and always pay on time, in fact they most pay in advance, accomodation expenses are extremely reasonable in the capital and getting there/back is a joy and sooo cheap. It's so good that those lovely agents have told you they'd find you work straight away and wouldn't dream of using your low level CV to bolster a favourite candidate that they're also putting forward, I mena why would they lie? it's not like that's there job is it? and all those doom and gloom posts on CUK about "who's in work?", "job's being outsourced" and "move over on the bench" by those long term contractors, ignore them, you're such a great great guy that you'll be the best contractor in the world and very rich very very soon just like your contractor mates told you you would, what's that "Rivendell, wake up now, it's time to get up and get dressed, it's time for school".. ahh what a great time life is for everyone...

if you can't take some harsh truths before you even start out then I look forward to your future posts on here such as "help, the agency say they're not paying me, it's so not fair" or "can i spend my tax money to cover my CSA payments? will HMRC mind?".. etc. etc.

[chef]

Chef's Advice for Newbie Contractor Wannabe's


1st tip - always read your contract

2nd tip - ALWAYS READ YOUR CONTRACT

3rd tip - if you direct your eyes to the right of the screen

---------------------------------------------------->

under the title CUK Navigation

look 6 lines down.. there you go

"First Timers"

read this section in great detail !!

4th tip - look about 1/4 down this page, 6 headers in you'll see a button that says "Search", use it before posting anything about needing your hand holding or arse wiping..

5th tip - if you expect to get any help from most people on here the best way to approach a question is something like "i would like advice on... I have searched and found some conflicting advice which is ... and would like some help"

that way it shows that your not the lazy f eckwit your intial post implies and dont expect to be nannied and given hard earned advice for free

6th tip - learn to grow a thick skin, you'll need it

7th tip - never trust what an agent says

8th tip - nothing is certain until its written in the form of a contract, if it's not in the contract it doesnt exist no matter what mr agent says it doesnt exist

9th tip - get yourself an accountant, they're there to ensure you meet all your financial legal obligations and to help

10th tip - get your contract checked by a professional, its not just a bit of paper, it's the thing that you will rely on when your not paid, your told to work 16hrs a day for your standard daily rate, mr taxman comes a knockin and wants the 40% tax + interest in 3 years time based on your working practice

and finally welcome

[Rivendell]

chef - your first post was appreciated and full of useful advice.

Your second one was patronising and sarcastic in the extreme and not appreciated.

I'm perfectly well experienced in the hardships life can deal beleive you me - my only minor gripe was that the post warning me of the long spells I would be out of work was not helpful - this person has no idea of my experience, field or the market in my neck of the woods.

With respect - I don't need a patronising diatribe telling me how naive I am for daring to question the advice of someone who has been there and done that.

[chef]

With respect - I don't need a patronising diatribe telling me how naive I am for daring to question the advice of someone who has been there and done that.

I just tell it how I see it and you must have missed my top 10 tips for newbie wannabe contractors