Need to enter contracting world...

[Cpplinuxdeveloper]

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

[stek]

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

Fail.

You won't make double the money, your Ltd might, but you won't - YOU might make less.

Read more, your don't get it yet. It's more of a mindset than earning more. Read more...

[northernladuk]

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.

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

[kingcook]

I see 30% of employees in my company as contractors

This is a FAIL aswell.

employee != contractor

[northernladuk]

Also......

You have been working 6 years? I bet most of the guys have been working a lot longer than that.

Also......

They do not take home a salary. They charge their time to the client who pays their LTD company. They then get paid from that. They do not get a salary 3 times yours. It will be more as they are specialists with a lot of time under their belts but they have to pay business taxes etc on that money. I assume you have seen what they charge the client and are not just guessing. Accenture charge their clients 1200 a day and the guys doing the work don't see a tiny amount of that.

[Segush]

Fail.

You won't make double the money, your Ltd might, but you won't - YOU might make less.

Read more, your don't get it yet. It's more of a mindset than earning more. Read more...

+1

I was also under that impression and that is not the case, as I contractor your company will make more money but not necessarily yourself. You need to take into account the pension, paid holidays and the rest. And you have to be good at what you do and keep on top of it to secure contracts. Grass is not always greener on the other side, read the first time guide and decide for the right reasons and not just the money side of it.

[MyUserName]

STOP - STOP RIGHT THERE!

You have drastically misunderstood contracting, contracting is not simply an easy way to get cash..

The rates that you have been quoted are not what the contractor gets. It is what their limited company gets and then they pay themselves a salary and/or dividends from that. They also have to pay numerous costs which you do not, insuraces, accountacy fees etc.

If you go into this just for the money you will be disappointed and perm employers will be reluctant to hire you.

[Wanderer]

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.

Ahhh, how long is a piece of string? If the contractors are being paid that much more than you then you are underpaid so ask for a pay rise or get a new job. Don't go switching from permie to contractor at the same job or you will be clobbered by IR35 big time.

Also, if your employer is underpaying you now then they won't give you a decent rate as a contractor either.

Time to move jobs...

[No2politics]

Need to enter contracting world...

Also......

You have been working 6 years? I bet most of the guys have been working a lot longer than that

If you are good enough you are old enough!

[Cpplinuxdeveloper]

pay rise not a good idea

Ahhh, how long is a piece of string? If the contractors are being paid that much more than you then you are underpaid so ask for a pay rise or get a new job. Don't go switching from permie to contractor at the same job or you will be clobbered by IR35 big time.
I did read IR35 but was'nt sure that weather I will come under that...



Also, if your employer is underpaying you now then they won't give you a decent rate as a contractor either.


Time to move jobs...

"Probably I should look for a contract at new place/client, I get paid alot better along my fellow perm employees, And pay rise in permenant job is maximum upto 5-15% if you take of 40% of that as tax (since I am on high earner band) there is'nt much left. So I wont agree with pay rise idea

"Dont think they are underpaying me, I just think that with my limited compnay I can have more tax efficient earnings"