Reply to: Looking to make the jump!

[SueEllen]

While you should use your accountant friend for advice use someone else to do your books. Things can and do go wrong with accountants and you don't want to screw up a friendship.

[WorkShy]

Hi guys,

Thank you for all the feedback, lots of different takes on it!

@quackhandle - No not married. I only have my home as real solid commitment. That's good advice though, a long period with no money coming in would be really tough if you had a family. Fortunately, I'm fairly free in that respect.

I'm not into my 30's yet, and I have a bit of money saved up for rainy days. I've taken a few risks in my life and they have mostly done me credit so far. So I think this is one of those moves I hope I'll never look back on!

I'm going to sit down with an accountant friend of mine and run through the numbers. Hopefully it will work out .

Thanks for the advice guys

[SueEllen]

If you wish to be a contractor then after you have done your research then just do it. People who ask when they will be ready are not ready.

[wantacontract]

don't do it chap......the market is tougher then ever, and the competition due to the supply of candidates is crazy!! Every permie I speak to is telling me, they are going contracting!!

as for me, I'm changing my mind and going back to permie land for a few years until the contracting landscape settles down a bit...too much uncertainty at the minute for me to stomach, (thats with a years war chest as well!)

[NibblyPig]

Once you get to a senior position as a developer and you're half-decent you should be getting hammered by recruiters for perm roles. Safe with the knowledge if it goes wrong you can go back to perm, and enough money to survive completely unemployed for a few months, and you're sure there are contracts matching your skill set, then hand in your notice, pay an accountant, open a business account, buy all of your insurances, join IPSE or whatever, and then follow your accountant's instructions to set up an LTD (or go the umbrella route which is easier but less money).

Then hope for the best.

[GCR99]

Timing is important, knowing when to get in, and more importantly when to get out of contracting.


I got my first contract in May 1996, after being away for a year travelling with my then girlfriend (now the wife). Before JobServe, it was ads in trade mags and newspapers. I answered an ad for an engineer for a 5 week role, I was skint so was willing to take anything to get back into the world of work. That ended up being over 3 years and I was finally canned Dec 30th 1999, after Y2K.

Seeing the carnage on the markets post 2000, I was offered a permie role and took that as I couldn’t see it improving for a while. I rode that for 5 years and travelled to Japan, US, all over Europe, great time all round. I wanted to get back to earning decent dough though, as I had a child by then, so back to Jobserve it was, and in 2005 took another contract and haven’t looked back. Several more since then, and back to back mainly but I’m a network engineer\design guy so there’s always something about, and I can usually do well at interviews\technical tests etc.

Things are not easy though, and the rates haven’t really moved much over time, but I’m not complaining, as I have all but paid off the mortgage and have no debt, so at 49 I’m thinking of scaling back a bit next year. The industry is not as much fun as it was, or maybe I’m a miserable S0d now, I dunno or care.

Anyway good luck, whatever you decide, if you are keen, reliable, upright and sober (most of the time), you can wing it like me for years and get away with it.

[NotAllThere]

There's never a good time to do it, and whenever you make the jump (if you are, in fact, cut out to be a contractor) you'll ask yourself why you didn't do it years ago.

I first went contracting many many years ago, since my permie job wasn't covering my very modest outgoings. I needed more money. I quit without a contract, worked my 4 weeks notice, and found my first contract 3 weeks after that. I took a break from contracting in 2000 and took some management positions, before returning to contracting in 2005, with admittedly, rather more financial security than the first time. I found a contract within 2 weeks and never looked back.

[quackhandle]

The money is certainly a factor but I've stagnated in permie roles hence why I've been doing this for over 12 years, I like the variety.

To the OP: are you married? My gf (now wife) met me as a contractor so the time out doesn't faze her, but could your wife cope with you being at home all day with no money coming in (so to speak) for 6 months, a year?

A decision now could cost you your marriage a few years down the line.

Good Luck.

qh

[LondonManc]

I personally didn't jump for the money, I did it because I prefer project-based work.
Similarly if you're risk averse, don't do it. Also, hope you're happy to go where the jobs are and live a "non-standard" life. I've spent 4.5 of the last 7 years in London and 2.5 in Manchester, meaning that I'm never sure when I'm getting ripped off and when I'm getting a bargain!

[quackhandle]

https://www.youtube.com/embed/SwYN7mTi6HM

qh

[Danglekt]

you need a decent amount of savings to make the jump - dont forget you will need to give notice on your perm job, and no guarantee the gig won't get pulled in the mean time.

Between the dividend tax increase, and the IR35 potential tightening, T&S via umbrella - the temptation to jump into the lower end of the market isn't really there as strongly.

Still doable, but make sure you are properly set up (6 months salary in the bank would be my suggestion), you may get lucky - but if you don't the personal/family/stress costs will make you wish you'd never done it.

Oh, and you have A LOT less time if you get back to back gigs - and if you are good, there is a fair chance of that. Taking time off feels wrong, I worked 18 months without a single day off when I set up, plus evenings and weekends to hit deadlines/do accounts/set up company - it is not more relaxing. I see it as having a 10 year shelf life before I want to go back perm for a rest!

[uk contractor]

Hi guys,

I've been going through the boards trying to absorb a lot of the great information and advice you guys have here. It's a very different world from being a permie and some of it is a bit tricky to digest. I wonder if I could ask some advice from you guys?

At the moment I'm working full time in a Admin/Engineer type role doing project type work. I'm currently on around 42k. Although I enjoy my job, I've been there a few years now and would like to move onto new challenges and get a pay bump.

I started looking into contracting because I think it would suit me down to a tee. I love the idea of having more free time, even if it is stressful time looking for new contracts. I like my work to be varied and involve different challenges to keep me on my toes. So I thought this would be something great to explore.

I'm a little bit stuck though trying to decipher the best place to start.

Would you recommend I keep hammering the job boards until somebody takes note, or because I'm so green, should I be going via agencies so they can help guide me. I know my CV is a permie C.V and people will be off put by that. Also, trying to work out the daily rates seem complicated, on paper a rate of 250-300 looks pretty good, but then after the risk if IR35 and all other expenses, risk, I'm not sure i'd be any better off! I've progressed very quickly in my career, but I'm sure I'm going up against people with more years experience.

If anybody has any advice, I'd be really grateful!

Thank you CUK!

Right now these jobs are not paying 250-300 a day due to the EU cough cough far east competition willing to do same roles for 150-200 day! You get what you pay for but clients/agencies can only see the bottom line right now.

Prepare for bench warming downtime if you go contracting & your not an in demand skillset developer or in demand project manager!

There is a lot of smelly BS around about how much people earn in IT the only people earning really high money are professional devs, highly skilled/qualified IT business & IT project managers. Everyone else is in the 150-350 a day bracket same as the perm salaries with a few exceptions here & there.

The IT gold rush ended a few years ago try getting a contract role you feel you are suited to with a perm background CV before handing your notice in as on paper its easy but when clients want the unicorn perfect candidate (who ticks all the boxes & then some) & the agency will always offer you less money as its your first contract & or use you to show the client what a perm to contract candidate interviews like with no intention of actually hiring you!

You see IT recruitment agencies are like estate agents its all a numbers game to them the more candidates they can place the more they earn in commission (their base salaries are pitiful usually) so expect to be lied to constantly & told you are on the shortlist even if your not even wanted!

Good luck but stop believing the hype its far harder to actually land a contract especially coming from a perm background that's a handicap to many clients they want highly skilled contractors who can hit the ground running with a lot of experience of different sites/working practices etc etc

[seanraaron]

I second pr1. In the past I had been tempted by the money, but the fact is that you're giving up a decent rate of pay with paid holidays and sick leave for potentially greater earnings and no certainty. I only took the plunge because I was being made redundant with eight years in the bank meaning I had a cushion of a few months wage behind me. I'm under no illusion this is going to be my new way of life because I have too many responsibilities to meet; if push comes to shove I'll go back to perm before I'll take benefits.

If you don't have anyone else depending on your income it's a different story, but have some savings before you take the plunge because you never know what could happen.

[roach]

I've had so much LESS free time since I started contracting!

[pr1]

Hi guys,

I've been going through the boards trying to absorb a lot of the great information and advice you guys have here. It's a very different world from being a permie and some of it is a bit tricky to digest. I wonder if I could ask some advice from you guys?

At the moment I'm working full time in a Admin/Engineer type role doing project type work. I'm currently on around 42k. Although I enjoy my job, I've been there a few years now and would like to move onto new challenges and get a pay bump.

I started looking into contracting because I think it would suit me down to a tee. I love the idea of having more free time, even if it is stressful time looking for new contracts. I like my work to be varied and involve different challenges to keep me on my toes. So I thought this would be something great to explore.

I'm a little bit stuck though trying to decipher the best place to start.

Would you recommend I keep hammering the job boards until somebody takes note, or because I'm so green, should I be going via agencies so they can help guide me. I know my CV is a permie C.V and people will be off put by that. Also, trying to work out the daily rates seem complicated, on paper a rate of 250-300 looks pretty good, but then after the risk if IR35 and all other expenses, risk, I'm not sure i'd be any better off! I've progressed very quickly in my career, but I'm sure I'm going up against people with more years experience.

If anybody has any advice, I'd be really grateful!

Thank you CUK!

don't jump without a safety net