Contracting UK
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Not altogether sure if this belongs here but couldn't think of another forum it could go under: I'm getting more than a bit fed up with my job (a common complaint I know) and I've had a ton of friends saying I should switch to contracting. I've got about a decade's worth of experience and I'm hoping to get married this year/early next year so I've got the following things to consider and would value input: 1) Is the pay that much better in the contracting market? 2) Do I start being the sort of contractor who does the A Team thing by going in and being an extra body or do I try to offer services a la rent a coder but with more complete solutions (i.e. providing an end to end website from database backend to the front end and admin tool rather than just a small part) 3) How would I change to being the second type in the above point?
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Not altogether sure if this belongs here but couldn't think of another forum it could go under: I'm getting more than a bit fed up with my job (a common complaint I know) and I've had a ton of friends saying I should switch to contracting. I've got about a decade's worth of experience and I'm hoping to get married this year/early next year so I've got the following things to consider and would value input: 1) Is the pay that much better in the contracting market? 2) Do I start being the sort of contractor who does the A Team thing by going in and being an extra body or do I try to offer services a la rent a coder but with more complete solutions (i.e. providing an end to end website from database backend to the front end and admin tool rather than just a small part) 3) How would I change to being the second type in the above point?
You have to charge more. But remember you are responsible for Income Tax, NI, Holiday time, sickness, overheads, expenses, etc You factor these in when quoting for a job. Also if your turnover exceeds £73,000 pa you will need to register for VAT. (And remember that is turnover, not profit).
--------------------------------- I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave CCC Link[^] English League Tables - Live
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You have to charge more. But remember you are responsible for Income Tax, NI, Holiday time, sickness, overheads, expenses, etc You factor these in when quoting for a job. Also if your turnover exceeds £73,000 pa you will need to register for VAT. (And remember that is turnover, not profit).
--------------------------------- I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave CCC Link[^] English League Tables - Live
True enough, I would expect that the first one at the least would be under an umbrella company so the majority of that shouldn't come into it, just when I get around to setting up my own. I would also expect to hire my own accountant to make sure the books are ok, as I understand it this is pretty common practise.
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Not altogether sure if this belongs here but couldn't think of another forum it could go under: I'm getting more than a bit fed up with my job (a common complaint I know) and I've had a ton of friends saying I should switch to contracting. I've got about a decade's worth of experience and I'm hoping to get married this year/early next year so I've got the following things to consider and would value input: 1) Is the pay that much better in the contracting market? 2) Do I start being the sort of contractor who does the A Team thing by going in and being an extra body or do I try to offer services a la rent a coder but with more complete solutions (i.e. providing an end to end website from database backend to the front end and admin tool rather than just a small part) 3) How would I change to being the second type in the above point?
My understanding of the contracting market in the UK is that it isn't that buoyant at the moment. Companies have been cutting rates (the banks all slashed their contractor rates by a minimum of 10% at the end of last year). There are a lot of out of work permanent employees also seeking contract jobs, which will be depressing the market rates. If you are getting married soon, you might want to postpone the uncertainty of contracting, at least until the market has picked up.
*pre-emptive celebratory nipple tassle jiggle* - Sean Ewington
"Mind bleach! Send me mind bleach!" - Nagy Vilmos
My blog | My articles | MoXAML PowerToys | Mole 2010 - debugging made easier - my favourite utility
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True enough, I would expect that the first one at the least would be under an umbrella company so the majority of that shouldn't come into it, just when I get around to setting up my own. I would also expect to hire my own accountant to make sure the books are ok, as I understand it this is pretty common practise.
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Not altogether sure if this belongs here but couldn't think of another forum it could go under: I'm getting more than a bit fed up with my job (a common complaint I know) and I've had a ton of friends saying I should switch to contracting. I've got about a decade's worth of experience and I'm hoping to get married this year/early next year so I've got the following things to consider and would value input: 1) Is the pay that much better in the contracting market? 2) Do I start being the sort of contractor who does the A Team thing by going in and being an extra body or do I try to offer services a la rent a coder but with more complete solutions (i.e. providing an end to end website from database backend to the front end and admin tool rather than just a small part) 3) How would I change to being the second type in the above point?
End to end solution providing is not contracting, it is consulting and has a whole different set of responsibilities. Contracting you go in do the work required and go home at the end of the day, leaving the work behind. Consultants rarely leave the work in the office.
Never underestimate the power of human stupidity RAH
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Not altogether sure if this belongs here but couldn't think of another forum it could go under: I'm getting more than a bit fed up with my job (a common complaint I know) and I've had a ton of friends saying I should switch to contracting. I've got about a decade's worth of experience and I'm hoping to get married this year/early next year so I've got the following things to consider and would value input: 1) Is the pay that much better in the contracting market? 2) Do I start being the sort of contractor who does the A Team thing by going in and being an extra body or do I try to offer services a la rent a coder but with more complete solutions (i.e. providing an end to end website from database backend to the front end and admin tool rather than just a small part) 3) How would I change to being the second type in the above point?
my advice: Do it! i switched just over a year ago and its the best decision i ever made. 1. in terms of money, i was bringing in £30k at my last perm job, went from that to a 6 month contract that worked out at approx £78k per year and from that to a £100k+ its best to set up your own limited company and put the income through that. you invoice (+vat) then take that income, pay your expenses (including VAT) out of it and what is left (the company profits) gets taxed @ 20%. Then you pay yourself a minimal salary (normally 7-10k) just to make sure the government still gives you a pension and the rest is paid as share dividends (which don't incur NI etc) with the 20% corp tax you pay on your company profits comes a 10% personal tax credit which means you pay 10% less income tax on the money from dividends. income is taxed as 7k tax free, 35k @ 10%, then its 35% until you hit 150k so with the 10% credit you only pay income tax on income above 42k (and thats at 25%) personally i dont need 42k per year so i dont pay income tax and leave the remainder of my profits in the company, these funds are then used to buy property which the company rents out 2. I would suggest you go for the whole 'sit in the office and be part of the team' style, (although you have to be careful with IR35 witht his style on contract). The market is very buoyant in the UK for this kind of work atm, whereas a friend who tried freelancing from home struggled to find work 3. no idea One thing that a lot of people said to me when i was making the move is that they would be concerned about job security, most contracts have 2-4 week notice period so you can find yourself unemployed from a perm job in just as short a time as a contract (i.e. job security is a myth) .. the difference is that, at the rate of my first contract, i only had to find work for 4 months of the year to break even with my last perm position ... frankly, if i cant find more than 4 months in a year, its probably time to change jobs anyway ;) contract took me from 'treat myself to a chocolate bar once every other month' to 'driving a brand new jag' ..... definately do it :D
Pedis ex oris Quidquid latine dictum sit, altum sonatur
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You have to charge more. But remember you are responsible for Income Tax, NI, Holiday time, sickness, overheads, expenses, etc You factor these in when quoting for a job. Also if your turnover exceeds £73,000 pa you will need to register for VAT. (And remember that is turnover, not profit).
--------------------------------- I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave CCC Link[^] English League Tables - Live
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My understanding of the contracting market in the UK is that it isn't that buoyant at the moment. Companies have been cutting rates (the banks all slashed their contractor rates by a minimum of 10% at the end of last year). There are a lot of out of work permanent employees also seeking contract jobs, which will be depressing the market rates. If you are getting married soon, you might want to postpone the uncertainty of contracting, at least until the market has picked up.
*pre-emptive celebratory nipple tassle jiggle* - Sean Ewington
"Mind bleach! Send me mind bleach!" - Nagy Vilmos
My blog | My articles | MoXAML PowerToys | Mole 2010 - debugging made easier - my favourite utility
I found the complete opposite, my last contract came to an end in feb and I was bombarded with calls from recruiters. I expect it varies by region but the home counties are going pretty strong atm the continent on the other hand is pretty hard up, my brother contracts in holland and theres very little out there
Pedis ex oris Quidquid latine dictum sit, altum sonatur
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I found the complete opposite, my last contract came to an end in feb and I was bombarded with calls from recruiters. I expect it varies by region but the home counties are going pretty strong atm the continent on the other hand is pretty hard up, my brother contracts in holland and theres very little out there
Pedis ex oris Quidquid latine dictum sit, altum sonatur
GParkings wrote:
was bombarded with calls from recruiters.
But are they genuine leads, or references fishing trips? I know a couple of contractors who are currently moaning about the volumes of calls they are getting where the agent is effectively just looking to find names of people who take contractors.
*pre-emptive celebratory nipple tassle jiggle* - Sean Ewington
"Mind bleach! Send me mind bleach!" - Nagy Vilmos
My blog | My articles | MoXAML PowerToys | Mole 2010 - debugging made easier - my favourite utility
-
Not altogether sure if this belongs here but couldn't think of another forum it could go under: I'm getting more than a bit fed up with my job (a common complaint I know) and I've had a ton of friends saying I should switch to contracting. I've got about a decade's worth of experience and I'm hoping to get married this year/early next year so I've got the following things to consider and would value input: 1) Is the pay that much better in the contracting market? 2) Do I start being the sort of contractor who does the A Team thing by going in and being an extra body or do I try to offer services a la rent a coder but with more complete solutions (i.e. providing an end to end website from database backend to the front end and admin tool rather than just a small part) 3) How would I change to being the second type in the above point?
I've been contracting for best part of 10 years, never been out of work for more than two months. There are a few important things to bear in mind before you go contracting: 1) Yes you will earn more upfront, but YOU are your safety net. If you get sick you'll have no money coming in if you're not working. If you want to go on holiday you'll have to bear in mind the money you won't be earning whilst your away. I've been dropped from places within a week when either the economy changes, or conditions change at your place of work. Contracts are there primarily to protect the company from you - not the other way around. If you plan to buy a house or re-mortgage soon be aware that most banks will require at least 3 years accounts for your company - some will take a year but depends on you situation etc. (Best to speak to an independent financial advisor if you are going to do this before you switch). 2) Never spend everything that you earn, save save save. Ensure you always have a stash of cash that can keep you afloat for at least 6 months. 3) Get a good accountant. No need to say anymore. 4) Set-up your own Ltd Company. Umbrella companies are staffed by muppets (well, then ones that answer your queries and you'll never get a straight answer out of them, IMHO, don't be fooled by the sales talk). They also charge shed loads for what they do. Good luck :)
"Benjamin is nobody's friend. If Benjamin were an ice cream flavor, he'd be pralines and dick." ~ Garth Algar "If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." ~ Paul Neal "Red" Adair
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GParkings wrote:
was bombarded with calls from recruiters.
But are they genuine leads, or references fishing trips? I know a couple of contractors who are currently moaning about the volumes of calls they are getting where the agent is effectively just looking to find names of people who take contractors.
*pre-emptive celebratory nipple tassle jiggle* - Sean Ewington
"Mind bleach! Send me mind bleach!" - Nagy Vilmos
My blog | My articles | MoXAML PowerToys | Mole 2010 - debugging made easier - my favourite utility
-
I've been contracting for best part of 10 years, never been out of work for more than two months. There are a few important things to bear in mind before you go contracting: 1) Yes you will earn more upfront, but YOU are your safety net. If you get sick you'll have no money coming in if you're not working. If you want to go on holiday you'll have to bear in mind the money you won't be earning whilst your away. I've been dropped from places within a week when either the economy changes, or conditions change at your place of work. Contracts are there primarily to protect the company from you - not the other way around. If you plan to buy a house or re-mortgage soon be aware that most banks will require at least 3 years accounts for your company - some will take a year but depends on you situation etc. (Best to speak to an independent financial advisor if you are going to do this before you switch). 2) Never spend everything that you earn, save save save. Ensure you always have a stash of cash that can keep you afloat for at least 6 months. 3) Get a good accountant. No need to say anymore. 4) Set-up your own Ltd Company. Umbrella companies are staffed by muppets (well, then ones that answer your queries and you'll never get a straight answer out of them, IMHO, don't be fooled by the sales talk). They also charge shed loads for what they do. Good luck :)
"Benjamin is nobody's friend. If Benjamin were an ice cream flavor, he'd be pralines and dick." ~ Garth Algar "If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." ~ Paul Neal "Red" Adair
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I've been contracting for best part of 10 years, never been out of work for more than two months. There are a few important things to bear in mind before you go contracting: 1) Yes you will earn more upfront, but YOU are your safety net. If you get sick you'll have no money coming in if you're not working. If you want to go on holiday you'll have to bear in mind the money you won't be earning whilst your away. I've been dropped from places within a week when either the economy changes, or conditions change at your place of work. Contracts are there primarily to protect the company from you - not the other way around. If you plan to buy a house or re-mortgage soon be aware that most banks will require at least 3 years accounts for your company - some will take a year but depends on you situation etc. (Best to speak to an independent financial advisor if you are going to do this before you switch). 2) Never spend everything that you earn, save save save. Ensure you always have a stash of cash that can keep you afloat for at least 6 months. 3) Get a good accountant. No need to say anymore. 4) Set-up your own Ltd Company. Umbrella companies are staffed by muppets (well, then ones that answer your queries and you'll never get a straight answer out of them, IMHO, don't be fooled by the sales talk). They also charge shed loads for what they do. Good luck :)
"Benjamin is nobody's friend. If Benjamin were an ice cream flavor, he'd be pralines and dick." ~ Garth Algar "If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." ~ Paul Neal "Red" Adair
Speaking from the US, you need to pay attention to #1 and #2. Note that for #1, even if you budget in, say, 2 weeks holiday, be prepared for the "billing demon". Not only will you have to pay yourself for the time off, but you will also become ACUTELY aware that you aren't billing anyone. It can really bother you if you don't write something down in your own policy manual. :)
Charlie Gilley You're going to tell me what I want to know, or I'm going to beat you to death in your own house. "Where liberty dwells, there is my country." B. Franklin, 1783 “They who can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety.” BF, 1759