First Timer

[Benny_UK]

Hi,

I've decided that now would be a good time to go contracting ... I've been reading alot of useful information on this site, but still have a few questions from some of you Pro's out there.

1) Finding your first contract.

When I'm looking for my first contract, I take it would be better to first have a Limited Company set up and then go hunting for a contract. I'm currently a Permi, so any contract would have to take into consideration that I would have to work a Months notice. Also, where is a good site to find out rates? I work in IBM AIX and have done for the past 6+ years, qualified as a IBM Certified Specialist in AIX ... are there any sites, which would give you a rough indication.

2) Worry about being out of work.

My biggest problem with Contracting is being out of work and not being able to afford the Mortgage. How do some of you cope ... My best thought was to set up a savings fund and transfer any spare coin into there incase it's sometime between contracts.

3) Setting up a company

How long does it take to form a company? Days or Weeks?

4) Location

Ideally I would like my first contract to be close to home, but incase that's not possible I take it most people here just stay in hotels ... is it possible to claim that expense back from the Company your contracting for ... or is it a case of you get enough coin in the contract to factor in hotels expenses. Can you claim them back from tax?

I have some more questions to come ... really excitied about becoming my own boss as such ... although I'm sure the missus thinks she is.

[DimPrawn]

Contracting is a lot more fun if you don't have a mortgage to worry about.

Anyway, a ltd takes a couple of days to setup, week at the tops. Many accountants will set one up for free when you sign up with them for a year.

You need to keep about 6 months living costs in a fund to cover quiet periods.

I personally have never taken a contract that is not commutable or where I can do the bulk of it remotely (ie. from home), but that's my personal choice.

Where are you living?

[brentmeister]

Your excitment about being a contractor will be very short lived if you spend time on this board

[DimPrawn]

That's true. We are all doomed after all.

HTH

[Mordac]

Rates

Have a look on Jobsite, Jobserve & CW Jobs and compare advertised rates. This will also give you an idea of which agencies tend to "specialise" in your field. In most cases they won't be specialists at all, they've just sown up a particular client. Target those agencies. You could also try targeting end-user companies directly, if you know who they are.

[lukemg]

1 - There are no decent resources to determine rate, too many variations in location/job role etc. Jobserve will give you an idea (for the jobs that display rates) this board is as good as anywhere, must state experience, location + how desperate you are in any question.
2 - Maintain expenses at current level and stash money as soon as it starts coming in. Don't start to think that your income now is = to your contract rate. You need a warchest to see you through the down times. If they don't turn up (my first 10 years and 6 contracts = only a weekend between each one) then you can spend some of it. Try to buy stuff instead of getting it on tick, apart from the mortgage, or you will have an outgoing expense every day of the month.
3 - Company takes 20 minutes - a few days to setup (I use managed limited from SJD), get the contract first.
4 - Location - Always managed to be at home (with some hefty commutes around the North West) apart from the first one (stayed with friends of friends). If I was living away, probably would look at B+B/travelodge, then maybe room in a house of someone at work (if they are ok) would feel more of a home and they might like the cash and the fact you go home every friday. You wont get extra coin for living away but can claim expenses (you still have to spend it first though, so it isn't for free !)
Don't get carried away with the 'own boss' situation, usually you are subject to more extreme forces in the job market than the permies which you can't control. Basically, you get paid more for the flexibility and to buy in skills you have learnt elsewhere, think 'hired gun' rather than business partner.

[sasguru]

No insults on this thread? What happend to tradition?

[Mr Crosby]

**** off

[sasguru]

**** off

That's better

[BoredBloke]

"3 - Company takes 20 minutes - a few days to setup (I use managed limited from SJD), get the contract first."

How does this differ from a normal Ltd company? Is it like a composite?