Reply to: First time contractor - Decisions to make

[GhostofTarbera]

Wouldn't this be the case at any point in time. I have been working in consultancy for 10 years and would have made the jump to contracting but was always afraid because of the reason you mentioned.

But at some point didn't you just have to make the jump with the risk, I have seen people less skilled than me working the same job on same project but they are contractors.

Think contracting as a swimming pool

You have been hovering above a nice swimming pool full of naked girls and cocktails for 8 of those years, the ninth year the girls were replaced with naked fat bald men and some of the men have died, now you enter the 10th year, everyone has died the pool is a stinky sess pool

You missed the boat


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[northernladuk]

Wouldn't this be the case at any point in time. I have been working in consultancy for 10 years and would have made the jump to contracting but was always afraid because of the reason you mentioned.

But at some point didn't you just have to make the jump with the risk, I have seen people less skilled than me working the same job on same project but they are contractors.

And was standard mantra up to know. Make sure you do you diligence and jump in. That was before the industry imploded and these few months, and many more to come, are the worst time to jump in since contracting started.

[WTFH]

Not true in Scotland. You can provide 4 weeks notice at any time on a rental and know you can leave. Some contracts include a 1/2/4 week notice period for reasons I don't understand. I prefer 0 day reciprocal.

Yes, this. Last time I did a flat share, I agreed with the letting agency on a 4 week notice period, which happened to be the amount of deposit they requested. That was in England. But it required a polite, professional discussion, which may be where others fail.

[Femster]

How long is the contract for? 3 months / 6 months? Have you worked out plan B for what if scenarios?

1. What if the project is closed or you were sent out within a week of starting?
2. What if contract renewals were not offered after 3 months?
3. What if you couldn't find a contract for the next 6-12 months?

Like other's have pointed out, it's not the right time to enter into contracting without a plan for "what if" scenarios.

Wouldn't this be the case at any point in time. I have been working in consultancy for 10 years and would have made the jump to contracting but was always afraid because of the reason you mentioned.

But at some point didn't you just have to make the jump with the risk, I have seen people less skilled than me working the same job on same project but they are contractors.

[Femster]

If you're contracting for a consultancy company they will usually front your travel cost. You claim it back from them. This is assuming you're working on their client site and not commuting into their same offices every day. Depends where your base is.

If inside you're taking home £4000 a month net, I estimate your day rate to be somewhere in the region of £375-400/day.. That's not much for an inside gig requiring potential travel expenses.

The market is not favorable at the moment. I got lucky and got into the market in 2017 when the IR35 debacle in the public sector happened and it was TOUGH. Gig number two and three weren't hard to come by, but I am finding gig number four a bit more of a struggle. On the bench for 3 weeks so far and I've been applying for roles in earnest since late December although, to be fair, I did turn a gig down in Jan because it was going to be horrific.

TLDR; Contracting isn't advisable at this time. Give it 6-12 months and normal service will be resumed.

This seems to be the consensus, even though it is a SC cleared role that they say will run for multiple project, it is not worth the risk. Thanks for all the advice.

[rogerfederer]

<snip>
Don't bother renting a room or flat - you're tied in for at least six months but your contract can be pulled at any moment without notice (despite what you may think). You'll still be liable for the rent.

Not true in Scotland. You can provide 4 weeks notice at any time on a rental and know you can leave. Some contracts include a 1/2/4 week notice period for reasons I don't understand. I prefer 0 day reciprocal.

[PerfectStorm]

I do a gig that occasionally requires staying away from home and very simply when we were doing the contract I put in a note that all accommodation, related travel and meals would be charged to the client with VAT.

Sometimes it's just that simple. I've had one prospective gig recently say "client won't do that" but the rest of the time I'd see it as a very ordinary part of business

[mattfx]

Hi,

I am new to this forum and contracting as I have never done it before. I have always been a permanent employee but always worked with Consultancies so I figured why not branch out.

The perfect role popped up out of the blue and I went for the interview and have received an offer. I cannot ask anyone obviously to make a decision for me but here are a few questions I cannot answer.

1. Expenses for the role would be very high as I would have to stay away from home and pay for it, with my consultancies I just claim it back every other week so never out of pocket. How do I pay for such high expenses as it would probably wipe out anything I make weekly.

2. If it is inside IR35, and I go with Umbrella will I them pay expenses out of my own pocket and have to take it off my take home calculations.

3. If inside IR35 and I take home is calculated at £4000 per month after the various taxes, is there anything else I need to take off?

Sorry for the long question, I am genuinely in so many minds as to what to do.

If you're contracting for a consultancy company they will usually front your travel cost. You claim it back from them. This is assuming you're working on their client site and not commuting into their same offices every day. Depends where your base is.

If inside you're taking home £4000 a month net, I estimate your day rate to be somewhere in the region of £375-400/day.. That's not much for an inside gig requiring potential travel expenses.

The market is not favorable at the moment. I got lucky and got into the market in 2017 when the IR35 debacle in the public sector happened and it was TOUGH. Gig number two and three weren't hard to come by, but I am finding gig number four a bit more of a struggle. On the bench for 3 weeks so far and I've been applying for roles in earnest since late December although, to be fair, I did turn a gig down in Jan because it was going to be horrific.

TLDR; Contracting isn't advisable at this time. Give it 6-12 months and normal service will be resumed.

[ladymuck]

Rubbish. I’ve had one work from home contract before. And have two running now.
Rare admittedly. But they do exist.

#metoo

Well, I don't have two at the moment but I have had three on the go at the same time

#thosewerethedays

[Lance]

Doesn't sound like the rate is that good to be honest.....

Nah no-one will get a contractor in and pay expenses for them to travel from home. Never happening unless they're REALLY desperate. Why would they? Not their problem where you live to be honest.....

Only time client cares where you live is that some get twitchy if you live miles away because they get scared you're gonna bail out first chance for a gig closer to home.

Not being funny - £50 a night in a travelodge for 4 nights a week, plus driving there mon, home fri is a fair chunk of that £4K gone. Is it really worth ditching you're permie job for that?

Rubbish. I’ve had one work from home contract before. And have two running now.
Rare admittedly. But they do exist.

[psychocandy]

Thanks for all the replies.

If they come back and agree the contract is outside IR35 would it still be deemed a bad time to leave my perm role?

I was thinking of asking about expenses, is this frowned on after the interview stage has been passed?

Doesn't sound like the rate is that good to be honest.....

Nah no-one will get a contractor in and pay expenses for them to travel from home. Never happening unless they're REALLY desperate. Why would they? Not their problem where you live to be honest.....

Only time client cares where you live is that some get twitchy if you live miles away because they get scared you're gonna bail out first chance for a gig closer to home.

Not being funny - £50 a night in a travelodge for 4 nights a week, plus driving there mon, home fri is a fair chunk of that £4K gone. Is it really worth ditching you're permie job for that?

[psychocandy]

Get it written into your contract that end client will pay your traveling and accommodation expenses - job done

If they say no (most likely) then raise your rate by expenses amount + tax (as you will be paying out of net income)

If you have 2/3/4 year old kids prepare to lose family allowance and 30 free hours of childcare also

Welcome to contracting


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<sigh> yes one disadvantage of going from limited to inside IR35 umbrella. The buggers want the child benefit back....

[psychocandy]

Hi,

I am new to this forum and contracting as I have never done it before. I have always been a permanent employee but always worked with Consultancies so I figured why not branch out.

The perfect role popped up out of the blue and I went for the interview and have received an offer. I cannot ask anyone obviously to make a decision for me but here are a few questions I cannot answer.

1. Expenses for the role would be very high as I would have to stay away from home and pay for it, with my consultancies I just claim it back every other week so never out of pocket. How do I pay for such high expenses as it would probably wipe out anything I make weekly.

2. If it is inside IR35, and I go with Umbrella will I them pay expenses out of my own pocket and have to take it off my take home calculations.

3. If inside IR35 and I take home is calculated at £4000 per month after the various taxes, is there anything else I need to take off?

Sorry for the long question, I am genuinely in so many minds as to what to do.

Is it Inside IR35 or not? BIG question.

Not having a dig but things like whether the rate is worth doing based on location/costs is the first thing to consider before even applying for a role.

Also, £4K take home is pretty poor to be honest - even for an inside role. Even worse if theres accomodation costs involved. Wouldnt go near it.

[GhostofTarbera]

Plus don’t hand in your notice until you have passed all vetting and credit checks

I would chance my arm and ask for expenses if I was you


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[northernladuk]

Thanks for all the replies.

If they come back and agree the contract is outside IR35 would it still be deemed a bad time to leave my perm role?

I was thinking of asking about expenses, is this frowned on after the interview stage has been passed?

Yes. If it is deemed outside it will be in the minority. Its likely any other contracts you take up in the next few years will be inside and again, being a newbie you will be up against many tens of thousands of very experienced contractors.