Reply to: First timers checklist

[NomDePlum]

Sorry for not replying earlier DeadKenny, but now that I have a contract I am sorting out the business side (for real) and haven't been keeping up with the forum.

Glad to hear the posting has helped you. As far as what you should do in order to get contracts I am not sure I am the best person to ask. I am only on my first contract but here goes. Also I can't comment on going direct as I didn't look into this (yet). I decided to take baby-steps first.

1. Updated CV and reworked for contracting - shorter (2 pages max and no small print), name etc followed by skills at the top in bullet points, job experience next and finally training and qualifications at the end. Left a quite a lot of permie stuff off and reworked experience to make it centered around accomplishments and skills. Planning to rework again to stress contracting experience I have now I am an old hand!!!
2. Get lots of people to read it and comment, stressing that it is for contracting. Ex-managers or other people who hire are best for this.
3. Decide what you want to do - is it development, etc and what skills you are comfortable with. This tells you the contracts you can go for. It is tempting to lie to yourself but especially for a first contract this will show up straight away. Doesn't mean you can't be honest and say that you have 4 out of 5 and can learn. If you do that and they take you(r company) on then fine.
4. Decide on locations and money you need. I knew how much contractors in my old company where getting and used this as a guide. You may want to go a bit lower than this but decide what you are happy with and stick to it. If you know a contract is paying more than your bottom dollar then ask for more, but not top dollar.
5. Put the CV up on Jobserve and CWJobs.
6. Skim Jobserve and CWJobs several times a day. If you see a contract that meets criteria you have decided upon in 4 & 5 then apply for it. If there are several agencies advertising similar/same contracts pick the one you think is best from the experience you have gained talking to them previously. I didnt bother making direct contact/registering with agencies I just talked to them in response to applications/leads generated from CV.
7. Keep note of agencies that you like/dislike. Use the list in future decisions.
8. Have patience. If you are struggling to find a contract then revisit 4 & 5 to see if there is space to move/increase chances. I am based in Glasgow and took decision I would go to London if money was right. Didn't come to it but I would have done it for right contract and may well do in the future.

And that is pretty much what I did. As for contract and IR35 questions at interview I would imagine this doesn't really happen and I wouldn't discuss this with the client. If they bring it up I would still try and avoid the subject. If it was direct different matter maybe. This is really between you and the agent and I wouldn't bring it up until I had an offer.

Decide if the rate is OK inside and/or outside IR35. If you can afford to do it inside IR35 still try and get it outside (Bauer & Cottrell are my recommendations for review/negotiations) it makes a big difference. If you decide you can't do it inside IR35 then again get B&C to do the review negotiations but be prepared to walk away. This gives you a better hand and might sway the decision. Make the above decision can/can't do inside/outside IR35 and that is as complicated as it needs to get. Its your company you make the decision.

Yes, I did form company first as I wanted to get VAT registered, etc. but also as a spur to find a contract when things where taking a bit longer than I thought they would. Owning your own company and makng these decisions for yourself is half the attraction to contracting after all

[Ardesco]

Hmm, quality site, it's timing out at the moment....

Use me instead I do webmail as well

[SallyAnne]

I have just secured my first contract and had it checked by Bauer & Cottrel (slight amendments negotiated by them to be outside IR35 and agreed by agency, so win-win there).

I am pretty confident having read the first timers guides and monitored the forum for advice but thought I would double check by posting here to see if there are any more things/steps I should be considering.

Here's what I have done:

1. Formed Ltd. company via SJD Accountancy
2. Registred for VAT as part of 1.
3. Opening business bank account with Carter Allen (again as part of 1)
4. Secured contract and made sure it is outside IR35 by having review by Bauer & Cottrell

Here's what I think I still have to do:
1. Register domain name to match company name
2. Sign up with SJD Accountancy to handle my company accounts
3. Sign up as member of PCG on PCGPlus
4. Register for PAYE (havent done yet but is part of SJDs company formation service I believe)

Part of doing 3 is so that I can gain insurance cover. Other than the insurance that comes as part of PCGPlus is there any other types I should consider?

Oh no!!!!! You're far too organised!! You're going to be too good at this and steal all the good jobs!!

Seriously - well done. You're more than prepared!

Mal is right on the website not being an urgent thing, but when you get round to it I'd recommend www.switchmedia.com. I use them and havn't had many problems. I'd got my web page (which has got nothing on it really apart fm my CV) and they give you webmail aswell, which is pretty cool (if you've given yourself a cool company name tha is!)

Good luck!

[DeadKenny]

NomDePlum, your post is exactly the kind of questions and check-list I'm after

I've been doing a lot of research, read the same guides, searched forums like this, taken advice from various people, and come to a similar conclusion, but to see someone with the same kind of list is reassuring.

I'm totally at the first step at the moment though. I'm just moving on from permanent with a butload of redundancy behind me (got to love the IT world), a good range of experience, and (having looked at the pros and cons) I'm keen to give contracting a go but I've been stuck at the first hurdle not really know which order I should do things.

Now in my case one concern I've got is how to actually go about securing that first contract. I'm used to agents with permie jobs, but not dealing with them for contracts. Should I just register with an agent telling them what I want and what services I can offer (and what rates I'd expect), and wait?

Once they've got something suitable, am I involved with contract negotiation or do you leave it to them and then have to get the contract checked out for IR35? Given that PCG have draft contracts can I (easily) get them to use one of those or are agents reluctant to do that?

I'm kind of concerned about going along to interviews and having to haggle and talk 'contract' terms, and not really knowing what I'm doing, especially if I get bound into an IR35 trap. Do you even discuss that stuff at an interview, or is it purely between your company and the agent? I want to try and be as businesslike as possible and sell myself and my services, but as a first time contractor I don't really have full confidence.

P.S. Did you do it in that order? i.e. form the company first before securing the contract? Does it help having the company first?


Oh, and apologies if I'm hijacking the thread. Hope it's okay.

[Ardesco]

Some people have to.

Nobody has to use an umbrella.

[ITContractor]

Or if you're one of these sad people who use an umbrella, go through PCG's QU and get membership for free...

Some people have to.

[malvolio]

Or if you're one of these sad people who use an umbrella, go through PCG's QU and get membership for free...

[NomDePlum]

With regards the fees for joing PCG if you join through the SJD Accountancy website http://www.sjdaccountancy.com/about/pcg.html you can get 15% off the first year costs.

From the blurb on the page you don't even have to use SJD just click on the link on the page above. You may however have to register and login to the site - not sure about that one but for 15% off doesn't seem too bad a deal.

[Yatesy]

I second that, HSBC were on the ball when I went in to see them. Walked in with no appointment, walked out fourty five minutes later with fully functioning business account, no fees for twelve months for complete counter service, afetr that I can swithc to phone and net only, and it'll be free for life.

[malvolio]

See I've never understood the love affair with Cater Allen, at least not in the last few years. I got all the toys (debit card, monthly statements, internet banking with BACS and CHAPS, high(ish!) interest deposit account with instant transfers and overdraft facility) from day 1 with my bank, all I had to do was prove the business plan and likely earnings (given I had a 12-monther at £450 a day in my pocket at the time, not too hard to do). OK, they charge me around £6 a month in bank charges, but they pay me around £300 a quarter in interest on average, so big deal.

HSBC. Nasty people, don't touch them with a bargepole. Not...

[Goya]

You should get a company debit card (do Cater Allen do them?) for routine expenses, rather than faff around with expense claims. Way more efficient.

Having recently opened an account with Cater Allen, I enquired about a debit card & was told I could only apply for one after 6 months, unless I could show I had savings stashed somewhere else (in the region of £15K I think).

[malvolio]

Jury service expense cover?

I refer to the previous answer from Mr Matchbox - it's bundled with PCGPlus and is not available separately (at least, not from PCG), but for 90% of people PCGPlus is a no brainer anyway.

[expat]

Am I correct that all I miss out on by only having standard PCG membership is the initial PAYE audit cover ?

Jury service expense cover?

[Lucifer Box]

What do the different PCG packages cost these days?

See http://www.pcg.org.uk

[ITContractor]

What do the different PCG packages cost these days?