Too late to start? And other questions...

[mace]

1. I'm 38 years old - I guess one of the benefits of contracting is that you can build up a nice little nest egg and retire at 50. That's only 12 years away for me, not much chance to build a significant lump sum. So I'd have to work later than 50 - not a problem for me, but I rarely see older subcontractors. Is there a significant element of ageism to subcontracting?

It's easier to make money when you're young and single and not so daft as to spend it all. It becomes harder/impossible once you've got a wife and kids.
Assuming, you're in the latter category I wouldn't recommend contracting unless you get pushed from a permie position.

2. The last five years have been spent in team and project management. I haven't exactly kept my techy skills (C++ development) up to date, but I reckon it's a bit like riding a bike if you have good code structure. I want to market myself as C++ and Java coder (not without some preparation on the Java side, I should add!), but realistically, will I get a contract without recent technical work?

It's a pyramid. Most contracts like most permie jobs are for coders. There are contract PM positions but not many team management contracts apart from short term interims. The problem that you'll have is that the rates are good the higher up the pyramid you are, but the opportunities are rarer, so you'll find yourself with long periods on the bench. If you're willing to travel both in the UK and abroad then you can most likely stay in work on a near permanent basis, however. If you want to go back to coding, you'll need to keep your skills up to date and ageism will likely be a problem as most employers will consider a 25 year old to have a more flexible mind than a 40 year old.

3. Bearing in mind point 2 above, what sort of starting rate should I expect to get, and what would I be able to build up to after I'm back in the swing of things?

Depends on your skillset and what the market rates that as. The only way of telling is to get your CV out there and talk to a few agents. At the moment, PM roles can go as low as £200 per day (which is about £40k as a perm), so you'd be better off being perm in current climate. In the good times, the same role could pay £500, however.

4. How easy is IR35 to avoid, realistically?

Not many successful prosecutions but it's the fear factor more than anything. As another poster says, you can just put any excess money in to a pension, thus reducing your tax rate without worrying about it.

5. Any other advice, links etc?

Stick at being a perm until the job vacancies are on the way up again. Check out old.jobstats.co.uk to determine when that would be. I'd probably start thinking about it February next year now, as there's always a massive dip from mid-December to mid-January.

[BrilloPad]

Hi,

I've had about enough of my current company. I'd like to know more about contracting, but I suspect my situation isn't normal:

1. I'm 38 years old - I guess one of the benefits of contracting is that you can build up a nice little nest egg and retire at 50. That's only 12 years away for me, not much chance to build a significant lump sum. So I'd have to work later than 50 - not a problem for me, but I rarely see older subcontractors. Is there a significant element of ageism to subcontracting?

2. The last five years have been spent in team and project management. I haven't exactly kept my techy skills (C++ development) up to date, but I reckon it's a bit like riding a bike if you have good code structure. I want to market myself as C++ and Java coder (not without some preparation on the Java side, I should add!), but realistically, will I get a contract without recent technical work?

3. Bearing in mind point 2 above, what sort of starting rate should I expect to get, and what would I be able to build up to after I'm back in the swing of things?

4. How easy is IR35 to avoid, realistically?

5. Any other advice, links etc?

Thanks
W

1. dont get divorced or have kids.
2. I suggest fluffing your CV.
3. go in low for first contract : but dont get ripped off by pimps
4. IR35 is virtually dead
5. dont believe everything you read on cuk. particularly in general. I think you would have got better replies from a post in business/contracts.

HTH

[milanbenes]

i
i cannot advise you either way, you need to do the maths and consider the risks

Milan.

[Stan.goodvibes]

I'm 45 and still contracting. Mind you I have the body of a 20 year old so people think I am a lot younger. And if you are only as old as the woman you feel that makes me 29 at the moment :-)

[nomadd]

Currently, expect to struggle as there are thousands of hot PM's and Coders chasing the work round the country. If you do score something, start thinking about your next job because 3 months contract pay ain't going to cover you for long.
Many people turn to contracting when they have nothing to lose or have a nice payoff to give them some backup, I would suggest these are the only people who should be trying to get in the game at this point, the market is vicious currently.

To the OP: WHS (quoted above.)

Cheers,

Nomadd

[lukemg]

Retire at 50 - yeah right. There are a sprinkling of contractors able to coin it for numerous years, most will have good times and bad as the technology/economy changes and they try to adapt.
Think slightly nicer car/house/holiday.
If we talk about whole life earnings, I suspect there will be little difference against someone who does say accountancy, becomes senior finance chap, gets decent company pension till he is 85.
The contractor might start earning more at an earlier age but don't get carried away that this will last forever, my yearly earnings graph looks like a scary rollercoaster (thankfully at a high point now !)
I do however enjoy the competition for jobs (when I win) and the buzz from starting somewhere new, the challenge etc.
Fortunately, there is an easy way to find out if there is any demand for you, apply for jobs from the boards (through contacts is good but isn't really the teeth of the market). I would pitch that you are available immediately due to the company downsizing.
You will rapidly find your personal level of demand out there. Currently, expect to struggle as there are thousands of hot PM's and Coders chasing the work round the country. If you do score something, start thinking about your next job because 3 months contract pay ain't going to cover you for long.
Many people turn to contracting when they have nothing to lose or have a nice payoff to give them some backup, I would suggest these are the only people who should be trying to get in the game at this point, the market is vicious currently.

[VectraMan]

1. I'm 38 years old

38 is too old to do anything but slow down and wait for death. I'm 38 too.

2. The last five years have been spent in team and project management. I haven't exactly kept my techy skills (C++ development) up to date, but I reckon it's a bit like riding a bike if you have good code structure. I want to market myself as C++ and Java coder (not without some preparation on the Java side, I should add!), but realistically, will I get a contract without recent technical work?

PMs earn more than developers without having to do any actual work. If you have the right acronyms on your CV, maybe you should stick to PM'ing. If not then you're not going to find it very easy to sell yourself as a developer without having done any for 5 years. If you're serious, find something to work on, like your own project, or something open source that you can point to in an interview as recent relevant experience. Remember nobody is going to pay a contractor to learn on the job.

Also don't assume you can get a development job with just knowledge of a programming language. A lot of the C++ jobs I see at the moment want either Oracle or SQL Server, financial experience, or a maths degree, in addition to code monkeying. It's the specific industry knowledge that makes you stand out and gets you the higher rates.

[NotAllThere]

I wanted to retire at 40 with a nice lump sum. But then my lifestyle increased to absorb my income. Well - you can't take it with you.

[Lockhouse]

I'm 47. No issues finding work at the mo.

[Durbs]

but I rarely see older subcontractors. Is there a significant element of ageism to subcontracting

Eh? The bulk of the contractors i've worked with have all been old. Its not often i've seen a contractors younger than me and i'm not particularly young. Perhaps thats just the places i've worked and the role i do though?

[Peoplesoft bloke]

1. Yes, but I have also worked with plently of older contractors - if you are good, you can probably overcome the ageism. In my last contract my contractor colleagues were 42, 56 and 64

2. dunno

3. dunno

4. Impossible to say as it's badly drafted and unclear at best, but people seem to be having some success - have a search on this site - go on!

[RSoles]

1. build up a nice little nest egg and retire at 50? probably not.
Ageism. Yes there is probably a lot.
Agents want twenty years experience from a twenty-year old.

I'm 51. been contracting for 8 years. Not rich, comfortable.
Recently took a year off. Could take another if push came to shove.
But see answer to 2.

2. will I get a contract without recent technical work?
Why not look for a PM contract?
'you're only as good as your last two contracts/years' is a phrase you'll hear more and more.

3. what sort of starting rate should I expect to get? Check what's being offered on Jobserve, check if you can live on it, ask for more then you can negotiate down.

4. How easy is IR35 to avoid, realistically? Wish I knew.
Go inside IR35, take a small salary, put all the rest in pension?

[Clippy]

Have you tried searching this site?

[wanstronian]

Hi,

I've had about enough of my current company. I'd like to know more about contracting, but I suspect my situation isn't normal:

1. I'm 38 years old - I guess one of the benefits of contracting is that you can build up a nice little nest egg and retire at 50. That's only 12 years away for me, not much chance to build a significant lump sum. So I'd have to work later than 50 - not a problem for me, but I rarely see older subcontractors. Is there a significant element of ageism to subcontracting?

2. The last five years have been spent in team and project management. I haven't exactly kept my techy skills (C++ development) up to date, but I reckon it's a bit like riding a bike if you have good code structure. I want to market myself as C++ and Java coder (not without some preparation on the Java side, I should add!), but realistically, will I get a contract without recent technical work?

3. Bearing in mind point 2 above, what sort of starting rate should I expect to get, and what would I be able to build up to after I'm back in the swing of things?

4. How easy is IR35 to avoid, realistically?

5. Any other advice, links etc?

Thanks
W