Hi all,
I've read the first timers guide and plenty of other sources about switching from perm to contract. I'll give my current situation, then I have a few questions.
I'm currently a 25 year old Systems Engineer in Oxfordshire, earning circa £35k before tax, I mainly work with Linux, general Sys Admin tasks, etc, some networking skills. Due to the nature of my employers work (a massive estate, we're an ISP with lots of services), I'm not much of an expert in one thing, but fairly skilled in many things. I have a Uni degree (BSc) and this year, I'll be coming up to 4 years experience.
For many reasons - including extremely boring work, work that's not even related to my job but I have to do, no career progression etc - I'm thinking of leaving. It won't be for a year yet, as I need to buy a house and get some more emergency savings together first.
Jobs like Linux Systems Engineer seem within my reach and skillset. Although my skills are thin in some of the areas, due to lack of exposure, I'm a fast learner and can quickly pick up a lot in a weekend of reading.
1. One of my worries after a lot of reading is IR35, my primary reason for wanting to switch to contracting is to earn a fair bit more money, IR35 could ruin this. From what I've read, am I right in thinking that shorter (i.e. 3/6 month) contracts are better, and 'project contracts' are better for IR35 avoidance than ongoing work contracts 'with possible option to extend' etc - which are more likely to be deemed 'employed' than 'self employed'?
2. Using contractor calculators, it looks like registering as an LTD can net you a lot more money - but there must be a reason that lots of people don't do this?
3. How much headaches do agencies save you? I hate the idea of giving away a good chunk of money to someone who simply searches for jobs for me, but are they worth it?
4. I know this is difficult to judge, but how much (roughly) would you expect to earn on a £300 or £400 daily contract in an IT related job? Using Parasol's calculator, they return £5,258.39 on their ClearSky limited plan - that seems far too high for me? Some other calculators give much lower estimations.
If anyone could nudge me in the right direction with the above, it'd be appreciated.
The rest of my concerns are largely ones I need to make personally. For example although my job is mundane and not the best pay, it's extremely easy (a bad thing too, as there's no challenge), it's right next to my house which means I can spend lunch at home walking my dog and I can turn up whenever I want (flexi-time) in jeans and a t-shirt. Contracting means much longer hours, commuting and lots of challenges (and wearing a suit, my pet hate), but it seems the only way to start earning real money.
Cheers,
SysEng.
I've read the first timers guide and plenty of other sources about switching from perm to contract. I'll give my current situation, then I have a few questions.
I'm currently a 25 year old Systems Engineer in Oxfordshire, earning circa £35k before tax, I mainly work with Linux, general Sys Admin tasks, etc, some networking skills. Due to the nature of my employers work (a massive estate, we're an ISP with lots of services), I'm not much of an expert in one thing, but fairly skilled in many things. I have a Uni degree (BSc) and this year, I'll be coming up to 4 years experience.
For many reasons - including extremely boring work, work that's not even related to my job but I have to do, no career progression etc - I'm thinking of leaving. It won't be for a year yet, as I need to buy a house and get some more emergency savings together first.
Jobs like Linux Systems Engineer seem within my reach and skillset. Although my skills are thin in some of the areas, due to lack of exposure, I'm a fast learner and can quickly pick up a lot in a weekend of reading.
1. One of my worries after a lot of reading is IR35, my primary reason for wanting to switch to contracting is to earn a fair bit more money, IR35 could ruin this. From what I've read, am I right in thinking that shorter (i.e. 3/6 month) contracts are better, and 'project contracts' are better for IR35 avoidance than ongoing work contracts 'with possible option to extend' etc - which are more likely to be deemed 'employed' than 'self employed'?
2. Using contractor calculators, it looks like registering as an LTD can net you a lot more money - but there must be a reason that lots of people don't do this?
3. How much headaches do agencies save you? I hate the idea of giving away a good chunk of money to someone who simply searches for jobs for me, but are they worth it?
4. I know this is difficult to judge, but how much (roughly) would you expect to earn on a £300 or £400 daily contract in an IT related job? Using Parasol's calculator, they return £5,258.39 on their ClearSky limited plan - that seems far too high for me? Some other calculators give much lower estimations.
If anyone could nudge me in the right direction with the above, it'd be appreciated.
The rest of my concerns are largely ones I need to make personally. For example although my job is mundane and not the best pay, it's extremely easy (a bad thing too, as there's no challenge), it's right next to my house which means I can spend lunch at home walking my dog and I can turn up whenever I want (flexi-time) in jeans and a t-shirt. Contracting means much longer hours, commuting and lots of challenges (and wearing a suit, my pet hate), but it seems the only way to start earning real money.
Cheers,
SysEng.
Comment