tips on going contracting

**northernladuk** · 5 May 2013, 20:29

Originally posted by manubbo View Post

Hi guys,

this forum seems ideal to ask some questions on the journey from permie to contractor

Background: I've got 5.5 years of experience as a primarily Java developer. I've worked for a couple of well known companies, and having worked with many devs/contractors I think my level is good enough to enter the market. I love what I do, and although I'm not a geek/nerd I tend to code and/or go to meetups in my free time, and I see myself as a professional that could give value to companies with my services.

My CV had a bit of job-jumping as a permie, my current job has started in January and I'm not completely happy about it, before that I had a 6-months period in a betting company (which I left because of upcoming redundancies). One of the reasons I'd like to go contracting is that this way I can feel more challenged and possibly go into different companies regularly at the end of my contracts. Would that be seen as a problem? I would like to switch before end of June as I'm on 1 week notice now, and that could be easily handled by any contract position.

Bearing in mind a contractors can do as little as 3-6 months at a gig it is kinda expected our CV's will have lots of short gigs so I don't think the job jumping is an issue as long as they all show your main skill set and can demonstrate from them all why you are the perfect person to fit that role.

Also - I read a bit on Umbrella vs LTD, I was thinking of going Umbrella for the first months, and then open a LTD if I like contracting. Is there any downside in doing this?

Only that not as much money will hit your pocket for that period. Try some of the calculators to see how much. I would say have a browse around the link below but it seems to be down for me at the moment. Google contractor calculators and you will find a brolly v ltd one somewhere..
http://www.contractoruk.com/calculators/
I did brolly for first 6 months and found it a lot easier but it isn't impossible to go LTD first. Just a bit of a steeper learning curve but a good accountant will handhold you through it. With the market as bad as it is at the moment you could lose just as much opening an LTD then having to shut it in 6 months.

I've already 6 working days booked off in July and 5 off in August - again, can it be seen as a no go by some companies?

Not really, it is in the middle of silly season so everyone will be off. Don't tell them until you have the gig and then mention it. It's far enough off for them to plan around it.

Lastly - not sure if this is appropriate for the forum, but if anyone has got suggestions of a good agency to enquiry for position that'd be appreciated. I'm based in London

Don't look for a particular agent, each one has dibs on certain clients so one agent won't help you. Look for the gigs and just apply to which ever agent has it. Check the sticky threads about 2 references to get an idea of the tricks they pull. Also read the sticky about opt in/out as well as all the guides to the right if you haven't already.

**flambo** · 5 May 2013, 21:55

tips on going contracting

Agree with the above. Ltd companies are something an accountant can sort for you in a few days. Will cost more initially but in the long-term it's the best option. Plus, if you are going to do this properly then you want to be your own man or woman. Owning your own company and treating it as that is important. You need to have that mindset initially as its quite different from the comfy permie world. The reward to risk ratio is much higher, you have to ask yourself if you are ok with being out of work and secondly if you can afford to. You'll hear the term warchest bounded around here. It means we all have a box of cash somewhere we can fall back on when the jobs dry up. It should be enough to last you 6 months minimum, ideally a lot more. This is now more important than ever. I'm a Java dev working for IBs in London and the market in 2012/2013 is poor. Lots of experienced people out there so you'd be up against stiff competition. Companies trying to coax contractors into perm roles and layoffs across a broad technical spectrum. I'm not trying to talk you out of it but give you a realistic view of how things stand. I've never looked back - contracting was the best decision I ever made. Do your research and see how employable you are plus make sure you've got savings. If you are ok with the risks then go or it.

**nomadd** · 5 May 2013, 22:43

Originally posted by manubbo View Post

Any other tips or suggestion more than welcome!

Don't go contracting!

(The Others will be along to depress you even more in a moment...)

**quackhandle** · 6 May 2013, 12:40

Read the guides on here many many times, learn how to run a ltd company, get a good accountant, ensure your CV is up to scratch, learn the pimps dirty tricks, and make sure you have a thick skin.

Tough world out there. Good luck.

qh

**manubbo** · 7 May 2013, 08:25

Thanks all for your suggestions guys - I know contracting is not an "easy way to get money" but at the moment I'm really lacking motivations as a perm. Know it's not gonna be easy but I like pushing myself - plus I think it's the right time for me to start as I can build my warchest with my 1st contract (I already have some cashflow, but I wouldn't call it proper warchest) not thinking about too many commitments (got a gf but no family yet - no mortgage etc).

Going to double read the guides and tips on CV tweaking.

**BlasterBates** · 7 May 2013, 08:28

Whatever you do don´t resign before you have a contract.

The market is totally sh**te.

Good luck.

**manubbo** · 7 May 2013, 08:29

Originally posted by BlasterBates View Post

Whatever you do don´t resign before you have a contract.

The market is totally sh**te.

Good luck.

That's why I'm trying to take advantage of being on 1 week notice

**ThomserveBAS** · 7 May 2013, 12:11

Originally posted by BlasterBates View Post

Whatever you do don´t resign before you have a contract.

The market is totally sh**te.

Good luck.

Although in general this is good advice, I wouldn't necessarily agree - only because I was in this position in August last year - I had been in my last role for 5 years so had a 3 month notice period so once I'd committed to going contracting I shoved my notice in and hit the job boards like nobody's business.

If your notice period is extensive (as mine was) then you will be lucky (read: it's nigh on impossible) to find a client that will wait so long for a newbie - so you might be in the position where you HAVE to hand your notice in to give yourself a fighting chance.

The market was against me when I got my first gig (newbie, applying in August when nobody is hiring) but I had 3 offers on the table - I can't say how the market has changed since August but I wish you all the luck.

EDIT: Oh and I went LTD straight away, registered my company via Company's House and pay an accountant - they save my company significantly more each year than I pay them to do so.

**kevpuk** · 7 May 2013, 12:45

I had a 4-week notice period from permie~dom, and started looking with this being made clear up front. Many potential gigs were (understandably) put off by the notice period, but others were seemingly not. For me, however, I was happy to wait for the right one to come along.....and it did.
Client was happy to wait for my specific experience, and thus I gave notice and then started with Client 4-weeks +1 day later.....no warchest, really, but the 6-month gig I am in will comortably see me through a further 6 months on the bench if necessary (hope not!).
Got myself good accoutants, InTouch, who set up Company for me and are brilliant at hand-holding me through the odd diverse question/scenario I have come up against, and now a month or so in and really happy with it all.

That said, as others will point out, everything hinges on the current gig lasting term, and so each week of invoicing makes me feel a little more secure.....

tips on going contracting