New(ish) to contracting - advice please

[lje]

I don't understand why "get an agent" is good advice. Surely they just take the cream off the top so to speak?

Look at the name of the person who suggested you get an agent and guess what he does for a living...

[kaiser78]

Hi all, just joined the site as I'm in the enviable position of being offered a role I can either take as a contract or a permanent position.

I contracted for a few months a couple of years ago but am currently a permie. During this contract I used an umbrella company but this time round I'm thinking of going the whole hog and setting up a limited company.

If you could give a newbie 1 piece of invaluable advice, what would it be?

1 piece of invaluable advice - get an accountant from the start to make sure you are set up properly based on your preference of going Ltd route.

[Old Greg]

There is a very good beginner's guide on the SJD website - you need to register (for free).

Other than that, CUK has an excellent Q&A service for any questions, no matter how basic. See my signature.

[SueEllen]

1 piece of invaluable advice - get an accountant from the start to make sure you are set up properly based on your preference of going Ltd route.

Another important bit if advice - make sure you control the company bank account solely regardless of whether you are married or not, and make sure you know who you are making payments to.

[TraceRacing]

Well, I've spent 2 days trawling these fora and am a lot wiser!

I have the final interview tomorrow and assuming I get the gig, this is my plan...

• As there is no agency involved discuss a IR35 friendly contract (offer to produce one)
• Appoint accountant (SJD looks good), get a Ltd established
• Join PCS (PCG?) or QDOS and get a contract produced (see above) and also get the "IR35 indemnity insurance"
• Open bank account
• Apply for VAT registration
• Get contract signed
• Sort out some software for accounts / invoices etc
• Start contracting

What have I missed?

[northernladuk]

Well, I've spent 2 days trawling these fora and am a lot wiser!

I have the final interview tomorrow and assuming I get the gig, this is my plan...

• As there is no agency involved discuss a IR35 friendly contract (offer to produce one)
• Appoint accountant (SJD looks good), get a Ltd established
• Join PCS (PCG?) or QDOS and get a contract produced (see above) and also get the "IR35 indemnity insurance"
• Open bank account
• Apply for VAT registration
• Get contract signed
• Sort out some software for accounts / invoices etc
• Start contracting

What have I missed?

Shedloads of detail I would say. They are very high level points but are on the right track.

Couple of points.

Make sure you are aware of the basics of IR35. It is about working practices not just the contract.
I am with SJD and happy with them
PCG. You don't join QDOS, you buy stuff from them, particularly PI/PL insurance which comes with some free IR35 contract checks. PCG is a different beast but there is a little crossover. Still worth joining.
IR35 insurance is a moot point. I don't and don't think many do but PCG has options around that with their membership. Take some time to dig a little more here.
On the VAT thing go for Flat Rate Scheme (FRS) as well. Much easier to work and you get a 1% discount for first year.
SDJ provide a very good accounts spreadsheet and have lots of sample invoices and the like.
Get in your head the difference between YOUR money and the COMPANY money.
Read up on allowable expenses and get used to the 'wholly and exclusively' rule of thumb

Enough to keep you going there. You are on the right track so keep going.

[TraceRacing]

Things progressing nicely. Had a face to face interview yesterday.

I've abandonded the idea of taking a permanent role (unless it's silly money) as the company is not nearly as "mature" as the big corporate I work in at the moment and the role isn't going to be as fulfilling as my current perm role so why change?

From a contract viewpoint for the right money I'd take it for 6 - 12 months. There's no doubt a lot of tulip involved as part of the role is to introduce formal process and procedure (my view is that the company is running at CMM Level 1 and it's clever techies keeping the business growing) as they are looking to take on bigger clients and need a level of seniority and business acumen which is pretty much currently only the directors.

One thing I did notice is that they still had a load of people working at around 6:15 last night when I left... not knowing what time they started, I'm concerned that this is normal (it isn't for me!) which is one of the key reasons of not taking a permie role.

How do you guys deal with additional hours? Do you accomodate it in the contract (hours above 40 hours per week charged at daily rate / 8 ) or just say "No"? My gut feel is just saying no will piss the clientco off?

[northernladuk]

How do you guys deal with additional hours? Do you accomodate it in the contract (hours above 40 hours per week charged at daily rate / 8 ) or just say "No"? My gut feel is just saying no will piss the clientco off?

You are not going to get a useful answer to that here. We do every role from PMO up to senior managment. Each has a different expectation. Each of us has a different client that has different opinions and if that isn't enough each of us has a different work ethic.

The only answer to this is to do what you feel is right for you and your client. I personally put the time in whereever needed but my client is flexible with me in return so am happy to do so. I also don't like 9-5. My previous client wanted 9-5 on the dot and didn't care if I went with outstanding urgent issues as everyone did it.

Think about what you want or are willing to do to make you happy and balance that with what the clients expect and will make him happy. Remember your needs don't always win but it's how much sacrifice you are willing to make.

[lukemg]

WHS, you have to adapt to the prevailing culture to some extent. If you are already getting big bucks then I would suck it up and do a fair chunk extra without asking for more. If the rate is about the market then I would be looking for additional cash for >40 hours (normal hourly rate except w/ends). Could also propose TOIL if they are worried about money. Note - you might come under the microscope when submitting these claims with queries over lunch, internet use etc so better make sure you are squeaky clean....