Step by step move from Perm to Contracting

[tim564]

Hi

I'm moving into the contract market for the first time but am currently employed in a permanent position. In what order to I start out?


Do I setup a limited company, get insurance sorted etc first and then start looking for a contract, and then say bye to my current employer?

[cojak]

Welcome!

You'll find a lot of answers to your questions within the CUK website.

On the right you'll find CUK Navigation. >>>>>>>>>

Look down and you'll come to the First Timers section. Have a read through there.

Umbrella or Ltd? Look here: Setting up your company - Ltd or Umbrella?

Basic expenses questions answered here: Contractor Expenses - How to claim Travel and other expenses via Limited Company or Umbrella

Then pay particular attention to IR35.

And here are the rules when using company credit cards: http://www.hmrc.gov.uk/payerti/exb/a-z/c/cards.htm

If you go into the Accounting/Legal forum you'll discover the thread Basic advice when running your own contractor business.

Guide to Contracts also has some good articles.

Do you want advice on the state of the contract market for your specialism/location? Have a look at this website; it will answer most if not all of your questions: IT Jobs Watch, Tracking the IT Job Market

And finally - accountant recommendations - Ta-da!

Happy reading!

[malvolio]

It's not really a step by step thing. It's more akin to sky-diving, where the first step is to leave a perfectly serviceable aircraft and trust to luck (and, to be fair, preparation) so you survive: as the old line has it, that first step out of the plane is a lulu.

However, like sky-diving, you tend to want to keep on doing it.

IMVHO start with a good, contractor-aware accountant; ignore the cost for the first year until you know what you're doing: they are worth their fees and seriously, you have no idea how much you don't know.

Thing is, though, you don't even get on the plane if you are still in a permie role unless you are very lucky. So research the market for your skills so you know if can actually get a gig, resign (i.e., step out of the plane...) and make sure you can live for three months or so with no income on the way down...

[TheFaQQer]

However, like sky-diving, you tend to want to keep on doing it.

And like sky diving - screw it up the first time and you'll not be doing it again.

[tractor]

And like sky diving - screw it up the first time and you'll not be doing it again.

And remember, it's not the fall that kills you, it's the sudden stop at the bottom.