Reply to: Going back to contracting?

[SueEllen]

More Mc Laugh In nonsense. Ignore him and his clickbait site. The r real situation is way more complicated but does not include killing off contracting.

He's stared two other threads on it. Interesting...

[malvolio]

Read this before going for contracting. It seems IT contracting will be affected sooner than most of us anticipated. June-17 can be the D-Day. I don't trust these *diots telling me that "no deal is better than a bad deal". So expect the worst from them when the reality of Brexit starts biting on the gvt finances.

Theresa May to Abolish Contracting Profession in June

More Mc Laugh In nonsense. Ignore him and his clickbait site. The r real situation is way more complicated but does not include killing off contracting.

[skysies]

When I think about it more, it's not financial reasons only. Contracting will give me the flexibility to change projects, clients, etc. With my current perm job, once I go past the 6 month probation period, I'll be then bound by a 3 month notice period. This is what actually bothers me most. It's like closing my door to contracting forever.

The notice period..is it someting I can renegotiate with the employer, to say 1 month?

Read this before going for contracting. It seems IT contracting will be affected sooner than most of us anticipated. June-17 can be the D-Day. I don't trust these *diots telling me that "no deal is better than a bad deal". So expect the worst from them when the reality of Brexit starts biting on the gvt finances.

Theresa May to Abolish Contracting Profession in June

[ShandyDrinker]

it seems you are all discouraging him from going contracting!

It is always going to be a leap of faith going from perm to contracting after all most of us have bills to pay.

And for most it is always about money (well at least for all the contractors that I know) ...... though after a while that changes

You just have to man/woman up to your decisions

No risk No reward

I wouldn't view it as discouraging from going contracting, it's about having your eyes wide open to the potential risks that go with the headline figure.

Fundamentally I agree with the no risk no reward comment and is one of the reasons I went contracting in the first place. However, with the rhetoric over recent years and attacks on the contracting sector (just look at IR35 in the Public Sector) means that the risk/reward ratio now needs to be reconsidered.

Given the recent NI budget debacle the government will be looking for other source of tax and our sector is an easy one to attempt to milk.

Only the OP can make the decision to go contracting but for the figures being suggested I think you'd be nuts to chop in a permanent role for the offer on the table. Contracting is only going to get harder for those of us left in the sector as it is now until the perceived advantage we are getting has been well and truly neutralised. I for one am expecting yet another attack in the Autumn budget which will make our lives just that bit more difficult.

[SueEllen]

it seems you are all discouraging him from going contracting!

Yes because people need to be realistic.

There has been an attack both purposely and unpurposely by different Chancellors on contractors.

It is always going to be a leap of faith going from perm to contracting after all most of us have bills to pay.

Lots of contractors I know started either when they were made redundant or when they didn't have kids and a mortgage.

And for most it is always about money (well at least for all the contractors that I know) ...... though after a while that changes

You just have to man/woman up to your decisions

No risk No reward

Yep but people need to be aware of the risks and also need to understand when companies are taking the p*ss.

[css_jay99]

it seems you are all discouraging him from going contracting!

It is always going to be a leap of faith going from perm to contracting after all most of us have bills to pay.

And for most it is always about money (well at least for all the contractors that I know) ...... though after a while that changes

You just have to man/woman up to your decisions

No risk No reward

[malvolio]

When I think about it more, it's not financial reasons only. Contracting will give me the flexibility to change projects, clients, etc. With my current perm job, once I go past the 6 month probation period, I'll be then bound by a 3 month notice period. This is what actually bothers me most. It's like closing my door to contracting forever.

The notice period..is it someting I can renegotiate with the employer, to say 1 month?

Contractors don't have notice periods: it can be argued that they are a bad idea for a contractor anyway. You're there to deliver something but you're also there as a resource to be dumped as soon as you're no longer needed. A lot of contracts don't allow the contractor to give notice anyway.

The one thing you have to do is lose the ideas behind permanent employment. None of them apply: no help, no HR support, no paid time off, no loyalty, no training and no career progression. You can safely bet on not working more than seven months a year on average - which is five months with no income. You are in competition with very good people who have been doing your job for years and are a proven asset. Be very clear about what that means to both you and whatever family you have.

[loden]

Whatever....

When I think about it more, it's not financial reasons only. Contracting will give me the flexibility to change projects, clients, etc. With my current perm job, once I go past the 6 month probation period, I'll be then bound by a 3 month notice period. This is what actually bothers me most. It's like closing my door to contracting forever.

The notice period..is it someting I can renegotiate with the employer, to say 1 month?

[SueEllen]

My reason is financial only. Well, there has to be some leap of faith. Hoping always for the best, right? Otherwise you guys contractors won't be around, right?

Whatever....

[malvolio]

My reason is financial only. Well, there has to be some leap of faith. Hoping always for the best, right? Otherwise you guys contractors won't be around, right?

Yeah, right... Well, best of luck. Let us know how you get on.

[loden]

That's about my day rate, give or take. I wouldn't leave a £85k-ish plus bonus perm job to go contracting if you are doing it for the money.

Why are you thinking of jumping?

My reason is financial only. Well, there has to be some leap of faith. Hoping always for the best, right? Otherwise you guys contractors won't be around, right?

[squarepeg]

1. Are there lots of contracts around for the skills you have? So if you get canned a week after starting the contract because the project is pulled you can find another one. Also be aware that agencies frequently lie about the length of contracts. I've had contracts that the agency has said is 3 months but the client only needed me for two, or the agency said is 3 months but the actual project was planned and lasted just over a year.

2. Do you have a warchest of at least 6 months? So if you get canned you can still afford to pay your mortgage and eat while you sort out another role. I've had projects canned early.

3. Are you prepared to work all over the country plus in Europe to minimise your time on the bench? Are you prepared to see your family only at weekends for years at a time? If you aren't or can't then you need a warchest of 12 months. I know some contractors aren't allowed to work away from home due to agreements with their other half. However their other half makes a decent living so it isn't a problem financially if they don't work for around a year.

4. Do you have any caring responsibilities? Not all clients are happy for you to come in late, leave early or pop off in the middle of the day for a short time to fulfil those responsibilities. However employers do give allowances for permanent staff.

5. Do you want to/have to create/maintain IP without your employer claiming rights to it?

[uk contractor]

If you have a family to support & or mortgage & big bills to pay stay perm contracting is changing rapidly its getting harder to maintain a lengthy in work pattern for most.

[woodyuk]

I have been offered a contract position paying £600 pd, for an initial period of 6 months. My calculations show that the monthly take home pay would be around £4668 when counting only 23 working weeks per year, which is the worst case if they don’t extend the contract after 6 months.

My perm base salary is around net £4500 per month, when counting the bonus it could go up to around £5700, but that can never be guaranteed, and it’s rather tough to get.

Comparing my base salary and my 6 month contract value, it’s seems it’s a no brainer as I’ll earn almost the same for only 6 months.

However, I still have my doubts, especially because of the state of the contract market. Also, this bonus is always at the back of my mind. Any advice appreciated

Out of interest how did you calculations get to £4668 a month from £600 per day rate?

[Crossroads]

Having said that, if you plan to continue contracting, and can be tax efficient with your personal income, and you can get future roles, you will be better off.