Thinking of taking the plunge...

Re: Re: Thinking of taking the plunge...

Cool thanks for all your replies everyone. I have a host of other questions but will try and answer some more on my own before posting them up on here. Thanks again everybody!

Re: Re: Thinking of taking the plunge...

You can work through some agencies. My second contract was through Computer People and they offered to give me PAYE but i had a ltd co so i didn't want it. Like many have said if you want to test the waters go for an umbrella co and then if you like it you can set up a ltd co. On the other hand if your like me and have a problem with money (e.g liking to spend it when it's not yours) then go for the umbrella cause there is no hassle of tax money and all the money the umbrella co pay you is all Yours.
It is right to save up a couple of months pay cause depending on when your contract starts you may need to wait up to 2 months before you get paid.
As for rate you should look on job serve and find an idea of how much your skills are worth in each are. You don't need to aim low just cause it is your first contract. My first contract was £350 a day in croydon you need to earn what it costs you to live.

Re: Re: Thinking of taking the plunge...

MM

Contractors on PAYE are almost certainly working through an umbrella (unless they are at the real bottom end of the payscle working like office temps).

Running a ltd is the best way to go if you are going to be around for a while.

I have done the odd bit of training (only a week here and there) but that was on very short term fixed price contracts with one of the big trtaining companies. There isnt really big money in training, I suppose if you have rare specialist skills (when I first did training knowing what the internet was counted as rare and specialist and got me £200/day) but IIRC Cojak was a trainer at one point, so she could give you a better idea.

Sorry I wasn't being at all clear. I appreciate that the agencies are there for the roles but I am aware that some of my colleagues have gone through agencies and been put on PAYE ( I guest via the agency) as opposed to starting their own company to route the money through. I was wondering if this was a simpler route to begin with, ie let the agency deal with the tax or have I just got the wrong end of the stick?

Thank you very much for you comments regarding IR35 and the ltd versus umbrella comment. I plan to be in the game for the long term (well at least beyond 1-2yrs) so will definitely go the ltd route and track myself down a good accountant.

On a broader note does anyone here concentrate on contract IT training or are you all more technical/IT management. I have experience on all sides of the business but the training is something I really enjoy. I was wondering if the work was really out there for that or am I gonna have to stick with the coding/IT management to earn the big bucks.

I'm also interested to know that as I'm just starting out is it best to go through an agency? I would like to go the ltd or umbrella route later on but kinda want to get my feet wet first and see how it goes without the hassle of a ltd company.

Using agencies have got nothing to do with operating as a ltd or through an umbrella.

Agencies find you contracts and place you to a client. They then pay you (they are responsible for collecting money from the client, take their cut, and pay you - in theory they have to pay you whether the client has paid them or not, so their relationship with the client is not your problem. That's the theory and it is probably good enough for you in your first few contracts)

Now umbrella or ltd: well, if you intend to be a contractor for a while, not just 3 months, then it's worthnot going through umbrellas. If you find yourself a good accountant, then you will make more money and be more in control as to how you pay yourself - an umbrella will just pay you like an employee, so the only difference between you and a permie is your expenses. Not great. Of course, if you are caught with IR35, then it makes no difference, as the Taxman will treat you like a permie anyway, so an umbrella would do. But in this day and age, it shouldn't be too hard for the agency to draw you what's known now as a IR35-friendly contract. When you talk to agencies and it's all going well and they offer you a contract, be firm and specify that you want an "IR35-friendly" contract. If they drag their feet, tell them which clause(s) to add (substitution etc.). They should do it, otherwise they're cr@p.

Thanks Cojak, some really useful hints. I've made sure I've got enough put away to cover bills for a few months, I was expecting the pay off for the high wages is that you can never really rely on regular money. Also thanks for your tips on the CV aspect, I'll make sure I gear it towards the right audience.

I'm also interested to know that as I'm just starting out is it best to go through an agency? I would like to go the ltd or umbrella route later on but kinda want to get my feet wet first and see how it goes without the hassle of a ltd company.

Any other useful tips greatly appreciated, oh and if anyone could suggest some good agencies in London it would be much appreciated. However as long as they're not as bad as the IT recruiters I've dealth with I think I'll be fine

First of all, £150 - £200 a day is not a good rate range. I wouldn't be happy earning that in Nottingham, let alone London. Only expect that on your first contract to break into the market.

Next - it's no good tripping off what you've done. What did the client get out of it? Always sell yourself from their point of view, not yours.

How much have you got in savings? Many contract jobs need you tomorrow, not in a month's time after you've completed your notice. Be prepared to hand your notice in before you get a job - your going to need to cover your bills for a month just in case.

Be prepared for sitting on the bench (Contractors are never 'unemployed' - that means you would be entitled to job-seekers allowance and they're not - only permies are), and not knowing where your next contract's going to come from - even when you've been promised that year's extention...

And remember - a promise is only as good as the contract it's written on... (and sometimes not even that...)

I currently work in an investment bank in London but have decided to go contracting in the new year to get a more varied working environment and more money obviously

I have been trying to check into the market lately and guage availability, hourly rates, etc. Obviously it varies wildly but I have a number of friends contracting in the city, with very little experience or qualifications, and still getting £150-£200 per day for just basic technical support or system installation. I have a good deal of experience (>4 years split between IBM and current company), first class degree and experience in not only normal tech support roles but also programming in a variety of technologies. I also have experience in multiple Operating Systems and a great deal of high profile customer facing experience.

I guess I'm just looking for a bit of advice. Yes I have looked around so I'm not just being lazy (as some are!) but it's always good to get the view from the inside. How do people currently working in London find it getting jobs, are the rates good, high availability etc. To be honest if I were able to get in on approx. £200/day I'd be happy, not to mention the contracting tax breaks

I guess the other thing is how do you guys/gals find the contracting lifestyle? If anyone has 2 secs to stick down their thoughts especially how it compares to any permie roles you may have had then I would REALLY appreciate it. Many thanks everyone.:rolleyes