Need to enter contracting world...

[Cpplinuxdeveloper]

you dont need x times of years experience.

If you are good enough you are old enough!

I think in IT after 5-10 years (depending on how good you are), it does'nt matter no. of years rather how good you are...

I know my friend who has been doing contracting for 2 years and this is the only experience he has in IT.....

[Cpplinuxdeveloper]

This is a FAIL aswell.

employee != contractor

Its a shame that you have assumed my knowledge about contracting. I do understand difference b/w employee and a contractor, the term was not used in that sence, this was not the question in the first place. The fact that I already have a limited company running from 2008, should be good enough for me to know things about it.

My orignal question was not about a difference b/w contractor and employee.

[Cpplinuxdeveloper]

I did not explain myself properly in my orignal question

You need to read the first timers guide to the right and actually understand what you are getting in to. You cannot just switch your role from perm to contractor. You will be inside something called IR35 which probably won't make efficient for you to do it.

You can't just want to go contractor just because everyone else is. They made a lifestyle/career choice and jumped in. You need to do the same. Just switching your relationship with your employer is not being a contractor.

Do the other contractors explain to you they do not paid for holidays, dont get any sick pay, have to travel to where the work is, could possibly do a 3 month gig and then spend the same again on the bench, run small LTD's and have to understand all the legistlation and rules around it as well as understanding their accounts?

I think you reasons for wanting to become something you don't appear to grasp fully are wrong. Have a good look at the guides and then have a think.

Also as a contractor you are expected to find your own work, run your own business and make your own decisions. Researching how much roles go for on sites like Jobserve is the thing to do, not ask people.
I never asked for job role, rather running rate... please revisit my question

Sorry to sound harsh but contracting isn't a joy ride that you can be carried through like permie land.

May be I should have explained about myself in more detail orignally, I know the things that contractor have to cope with. I know that there is no sick pay, holiday pay etc etc.... with contractors.

I already have a limited company with company bank accounts running that I will be using for the payment. I opened a limited company back in 2008, but mostly inactive. Hence that all is not something new to me.

IR35 I understand may come into play but I see contractors not being effected by IR35, seems as if I put this question in a wrong way.

As a contractor I am not looking to only switch my relationship with employer but also open to new contracts

[Cpplinuxdeveloper]

Fail.

You won't make double the money, your Ltd might, but you won't - YOU might make less.
yes, but then again I own the company hence its an assest for me...
Read more, your don't get it yet. It's more of a mindset than earning more. Read more...

Did I ever say that I dont know what a limited company is or how it runs.. I have seen contractors practically earning 3 times more, limited company can be more tax efficient and you can include alot more of the expenses.

[northernladuk]

Did I ever say that I dont know what a limited company is or how it runs.. I have seen contractors practically earning 3 times more, limited company can be more tax efficient and you can include alot more of the expenses.

So you will know what you see is what their LTD charges, not what the contractor earns.

but anyway.. from what I see you have two options. Stay perm or go contracting... choice is yours. There are plenty of resources on this site to get you up to speed so time to put your money where your mouth is.

[northernladuk]

As a contractor I am not looking to only switch my relationship with employer but also open to new contracts

Hmmm, this just doesn't sound right for some reason.

[mudskipper]

Did I ever say that I dont know what a limited company is or how it runs.. I have seen contractors practically earning 3 times more, limited company can be more tax efficient and you can include alot more of the expenses.

Yes, if your employer agrees, you can switch from perm to contract doing exactly the same role. But you will be inside IR35, so take that into account for your calculations. And, as you've already been there 2 years, you will not be able to claim subsistence expenses through your limited (see the 24 month rule).

[Wanderer]

Its a shame that you have assumed my knowledge about contracting. I do understand difference b/w employee and a contractor, the term was not used in that sence, this was not the question in the first place. The fact that I already have a limited company running from 2008, should be good enough for me to know things about it.

My orignal question was not about a difference b/w contractor and employee.

Ahh, don't worry about it. Anyone who says the wrong word here is routinely beaten up by the permie speak police.

mudskipper is exactly right, you can switch from permie to LTD but you will be caught by IR35 so you will pay a lot more tax than your fellow contractors. Don't think you can fiddle it either because you will get investigated at some time down the line (probably a few years) and they will have an open and shut case for a Friday to Monday contractor as they call it which is what IR35 was brought in to combat. When you get caught, you will have to pay back the tax owed plus interest and penalties of up to 100% of the tax owed.

Go contracting if you want to but you can't realistically go permie to contractor with the same client and avoid IR35.

[stek]

Need to enter contracting world...

Why start a ltd and not use it?

And if you are in 40% tax bracket and contractors u know are earning 3/4 times that much they are committing financial suicide effectively paying about 60% tax. The trick is to draw as little as possible to fund a war chest for when times get hard.

[BolshieBastard]

Hello,
I have been working in permanent roles for last 6 years, My current permanent role I've been doing for 1. 3 years now. I need to either swith my permanent role into contracting as I see 30% of employees in my company as contractors, it was 40% when I joined (doing same job as me and taking home 3 times more the salary I get)

If I leave the company within two years than I have to pay them back the expensis and relocation cost that they invested in me (around £3-4K ), however if I leave the company after two years I only have to pay 50% of it. So at times I think its worth waiting for another 7-8 months before I start looking for a contracting role and in the meantime, I will gain 2 years of experience with this company which gives me more product knowledge (as it a huge product, developed and mantained by 2000-3000 developers) and then after 2 years I may stand a better chance of my contract being switched from perm. to contract.

Ideal situation for me would be to have a strategy where I can switch my current position to contract, as with my current emplyer there is'nt a diffference b/w when perm. does and what a contractor does. Its at 20 mins drive from where I live. And I have also seen contractors with the company for 6 years some are other contractors doing over 10 years, So whats your take on this? I know that contracting is far different as I may have to sit home for 2-3 months in a year but if I know that I can make double the money or even more in a year eventually I would take it.


Also please suggest what is good practical hourly rate for C++/linux developer in City and greater London, I know itjobwatch have the figures but information directly from someone in market is sometimes better.

Thanks

LOL! If ever there was a misconception about contracting and permie, this is it.

I wouldn't want to be in the shoes of contractors who've been at your place for 6 years never mind 10!