Reply to: What to do next. Should I panic?

[NorthWestPerm2Contr]

+1 to that. I started contracting so I could finish a gig and then go look for a new challenge. That's the buzz of contracting for me. Sometimes end up with a gig that isn't the best but it's what you make of it. If you don't like the constant change and starting afresh every so often you are in the wrong line of work.

+2

I live the thrill of coming to the end of a contract and knowing I could be out in the wilderness. Makes me feel alive!



Also the possibility of bench time actually excited me, I am still looking forwards to that long break.

[northernladuk]

I just don't get why contract end ==> panic? Contracts end - that's the whole point.

+1 to that. I started contracting so I could finish a gig and then go look for a new challenge. That's the buzz of contracting for me. Sometimes end up with a gig that isn't the best but it's what you make of it. If you don't like the constant change and starting afresh every so often you are in the wrong line of work.

[SpontaneousOrder]

I just don't get why contract end ==> panic? Contracts end - that's the whole point.

[speling bee]

Thanks guys for all advice I have saved about £15k so I guess I should be fine until I find my next job and I have a car that's worth about £12k aswell that I plan on selling because I don't really use it.




Thanks the reason I said us is because there is a team of 4 of us and the impact is on the team. I.e. we will all be finished or none of us will be finished. There are rumours now that we actually won't be let go so hopefully no need to panic yet, although I may be on here with some more questions.

Thanks again.

The more the merrier.

If you have any questions that you need a quick turnaround on, just use the CUK ask the experts service.

[dannywzman]

Thanks guys for all advice I have saved about £15k so I guess I should be fine until I find my next job and I have a car that's worth about £12k aswell that I plan on selling because I don't really use it.

Unfortunately you are completely missing the point of contracting. You are thinking like a permie being paid in a different way. Firstly forget us. The impact is on you and your business. You are delivering to a client. There is no us. So what if there is no budget for staff. You are not staff. Again, you are taking teams, forget teams. You are an independent contractor, what happens to the team is irrelevant. A good contract will be able to manoeuvre themselves to pick up work when perm teams have gone. You are a flexible resource so much more useful than teams of staff who are too inflexible when the budget bites. ?

Thanks the reason I said us is because there is a team of 4 of us and the impact is on the team. I.e. we will all be finished or none of us will be finished. There are rumours now that we actually won't be let go so hopefully no need to panic yet, although I may be on here with some more questions.

Thanks again.

[lukemg]

Working with a contractor like that, blasts every penny on hols, manicures, hair, spoiling teenagers blah blah.
Terrified of losing the contract, can't pay for stuff 'until I get paid', burned through all the tax and VAT cash as well.
Unbelievably stupid and naturally it's not her fault, she had to go away/get that extension done/get a VIP yurt at Glasto etc etc.
Yes, take some time to smell the roses, enjoy yourself but FFS give yourself a buffer of at least 6 months, you will feel a lot better for it.

[Sausage Surprise]

Hi guys. Found this website as needed some advice about career options. About 18 months ago (Dec '12) I got offered a job in a bank (through a recruitment agent contacting me). I was reluctant at first because it was a contract role and there was no pay for holidays no benefits etc. However after comparing the money it was a much better offer even with this considered. I worked for 3 years up until that point netting into my bank account about £2200/month (at the end) , now I net nearly 4 times that , the only sacrifice being I don't get paid for days off if I take them (I don't take many anyway) and you don't get health insurance. I am glad I moved, I like the work etc and it is much more stress free than my last job. However last week we were informed that they were closing down a segment of the business and it may have an impact on us and they think it might mean that they won't have the budget to keep some staff in 4/5 months time. Our team specifically was told we were at risk because we are 'subject to frequent budget review'. But there are other teams that do not appear to be impacted. I am wondering should I start looking already for another job or is there any point panicking until they actually do something? Thanks in advance for advice.

Try using paragraphs....it hurt reading that.

[NorthWestPerm2Contr]

OP: Go on, who's sockie are you?

[northernladuk]

Hi guys. Found this website as needed some advice about career options. About 18 months ago (Dec '12) I got offered a job in a bank (through a recruitment agent contacting me). I was reluctant at first because it was a contract role and there was no pay for holidays no benefits etc. However after comparing the money it was a much better offer even with this considered. I worked for 3 years up until that point netting into my bank account about £2200/month (at the end) , now I net nearly 4 times that , the only sacrifice being I don't get paid for days off if I take them (I don't take many anyway) and you don't get health insurance. I am glad I moved, I like the work etc and it is much more stress free than my last job. However last week we were informed that they were closing down a segment of the business and it may have an impact on us and they think it might mean that they won't have the budget to keep some staff in 4/5 months time. Our team specifically was told we were at risk because we are 'subject to frequent budget review'. But there are other teams that do not appear to be impacted. I am wondering should I start looking already for another job or is there any point panicking until they actually do something? Thanks in advance for advice.

Unfortunately you are completely missing the point of contracting. You are thinking like a permie being paid in a different way. Firstly forget us. The impact is on you and your business. You are delivering to a client. There is no us. So what if there is no budget for staff. You are not staff. Again, you are taking teams, forget teams. You are an independent contractor, what happens to the team is irrelevant. A good contract will be able to manoeuvre themselves to pick up work when perm teams have gone. You are a flexible resource so much more useful than teams of staff who are too inflexible when the budget bites.

Start thinking like a contractor not a permie. You are in business for yourself so it is you you need to be thinking about. How much effort you put in to staying invoicing is up to you. If you want to wait until the axe falls and then cry about it then it's up to you. If you want to cover your back and make sure whatever happens you have billable work at hand then that's your call.

I am assuming reading all this you don't pay much heed to the fact as a contractor you can be binned with zero notice, they can do what they please with you and you have to grin and bear it. Have you also planned for a couple of months on the bench in all these rosy money calculations? You are aware of IR35 and are making sure you act like a contractor and not a permie?

[The Spartan]

Also, proper contractors don't claim JSA but if you are really stuck, search for threads started by psychocandy or PM him. He's our resident expert.

LMAO @ ^^

[speling bee]

Make sure you have enough saved for any bench time, if you think that you will have downtime. Make sure you have enough in the company to pay the PAYE, NI, VAT and corporation tax.

No need to panic, the ability to get rid of contractors easily is why companies engage contractors rather than permies.

Also, proper contractors don't claim JSA but if you are really stuck, search for threads started by psychocandy or PM him. He's our resident expert.

[TheFaQQer]

Make sure you have enough saved for any bench time, if you think that you will have downtime. Make sure you have enough in the company to pay the PAYE, NI, VAT and corporation tax.

No need to panic, the ability to get rid of contractors easily is why companies engage contractors rather than permies.

[BrilloPad]

You should always be looking for another gig to see if there is anything better.

[d000hg]

@ OP: you fell into contracting by mistake. NOW is the time to start thinking like a proper business, or find an employed job. Either way, I suggest you build a LinkedIn profile and connect with all the people you have ever worked with (more or less) and start hitting the job boards. Good luck

Also, read up on contracting... see the "First Timers" link at the top of the right-hand column on this page.

[BlasterBates]

You don't need to panic, but generally banks are not looking great, but plenty of jobs/contracts outside banks, and non-banks, hedge funds etc look better.

Save up the warchest, and don't expect it to go on indefinitely, the bank gravy train seems to be drying up, slowly but surely, projects being offshored etc.

I would just hang in there, but keep your eyes open.