Please Advise - im new to contracting!

**mrdonuts** · 18 January 2009, 17:25

Originally posted by newtothis View Post

A colleauge of mine earns a substantial amount compared to me, considering we do the same job, and i found out why,

sure its not because your colleague can spell and you can't

**newtothis** · 18 January 2009, 17:27

Originally posted by mrdonuts View Post

sure its not because your colleague can spell and you can't

Ha ha cheers for pointing out my, error, ive rectified it now. cheers mr donuts.........you fatknacker!

**Crossroads** · 18 January 2009, 17:34

Originally posted by newtothis View Post

A colleague of mine earns a substantial amount compared to me, considering we do the same job, and i found out why, shes a contractor.

Or is it because she has a wealth of experience in the field compared to you, and therefore commands better renumeration?

Originally posted by newtothis View Post

can you negotiate hours with potential employers?
can you choose which geographical areas you work in?
do you negotiate day rates?

Of course you can...you can negotiate to be paid in Rolls Royces if you and the client want.

Originally posted by newtothis View Post

the risk of jacking in a perfectly good job, and going it "alone" riskinging not being employed for a few months is very daunting since i have a mortgage to pay.

Maybe why this is you get paid "less"...less risk, more benefits.

Read all the guides on this website before posting again!

**newtothis** · 18 January 2009, 17:36

Well, so far, you guys arent exactly helping, but thanks anyway. im looking for assistance, not to be ridiculed!

**Cyberman** · 18 January 2009, 17:38

Forget contracting at the moment. The market is dead !! A point I would make though is if you want to contract, then you must be extremely flexible with regard to location, or you will cut your options considerably. Then be prepared to be out of work for possibly long periods.

Your friend may say that he earns more than you, but out of that money he has to pay many taxes, agents fees, accountants fees, possibly lawyers fees, and some of his contracts may fall under IR35, which means that he would have to pay full PAYE, while also having the risk of not having a contract in the current climate and not being able to claim unemployment benefits. You may also have a company pension scheme that could be worth a fair bit, and you can also be paid when sick and take paid holiday. A contractor does not have these valuable benefits.

Think carefully before you jump!!

**pmeswani** · 18 January 2009, 17:40

Originally posted by newtothis View Post

Hi there Guys and Girls

Am looking for advice. I can only hope some of you will appreciate the situation im in, my concerns and my apprehension to go into contracting, so any advice will be grateful, so here goes.

Im a QA Analyst for a large insurance intermediary (namely a well known comparison website.) but thats irrelevant at present.

A colleague of mine earns a substantial amount compared to me, considering we do the same job, and i found out why, shes a contractor.

Further investigation into this, it looks very appealing, but i have alot of questions. a friend of a relative of mine is an I.T buyer, and shes earns bucks as a contractor, but i prefer an outsiders advice and guidance so to speak.

How did you get started?

can you negotiate hours with potential employers?

can you choose which geographical areas you work in?

do you negotiate day rates?

how do they pay you?

do you use an umbrella company, if so, can you recommend one?

is it better to be a ltd company or use a umbrella company?

what exactly does IR35 mean?

the list is endless, im sure you can tell. id go contracting tomorrow if i could, but i the risk of jacking in a perfectly good job, and going it "alone" riskinging not being employed for a few months is very daunting since i have a mortgage to pay.

so i suppose im looking for reassurance and stories of how you guys got into it and if its worth it and if you hav any regrets?

ive looked into umbrella companies, they look good, then i hear about the ltd option, that looks good too, so it seems id take home more money but am still undecided. iv looked at accountancy firms too.

If this thread makes sense (hopefully it does) and you could help this enthusiatic guy out in anyway, id much appreciated.

i reside in peterborough, and would looking to work around the east anglia area, so if you know of amy potential recrutiment websites ic ould look at, it would most grateful.! ;-)

yours gratefully, a willing wanna be contractor!! lol :-)

Is this post an attempt to be the worst post of 2009?

Assuming that you are serious.... why would you consider ditching your permie job to go into contracting in this economic climate? I've been contracting for about a year and have been out of a regular income for the past 6 weeks. My funds are almost depleted and am literally begging for work. If I could get a permie job tomorrow, I would take it. The contract market is not a pretty one at the moment. I would suggest reading the various articles on this website in relation to some of the questions you have asked. In terms of negotiating the rate... it's no different to negotiating a salary for a permie role. Clients have budgets and always look for the cheapest possible employee / contractor. If you are worth it, then the client would consider meeting your rate / salary, as long as it is within their budget. In terms of location... only apply for jobs that are in specific locations.

Your contractor friend is earning no more or less than you are. The only difference is that they are paying less tax than you and have more take home pay.

HTH

**newtothis** · 18 January 2009, 17:42

Originally posted by Cyberman View Post

Forget contracting at the moment. The market is dead !! A point I would make though is if you want to contract, then you must be extremely flexible with regard to location, or you will cut your options considerably. Then be prepared to be out of work for possibly long periods.

Your friend may say that he earns more than you, but out of that money he has to pay many taxes, agents fees, accountants fees, possibly lawyers fees, and some of his contracts may fall under IR35, which means that he would have to pay full PAYE, while also having the risk of not having a contract in the current climate and not being able to claim unemployment benefits. You may also have a company pension scheme that could be worth a fair bit, and you can also be paid when sick and take paid holiday. A contractor does not have these valuable benefits.

Think carefully before you jump!!

Cyberman, thankyou for your advice. i wont be doing it anytime soon because of the recession, just looking for hints and tips really. i know about all the taxes and PAYE, accountancy fees etc etc, but still, even net is a lot more. in terms of geographical areas, i dont like to travel far, i.e 2 hour journey there, and 2 hour back etc. i used to be a BDM for travelex foreign exchange, really put strain on my marriage i tell you!

**newtothis** · 18 January 2009, 17:45

Thankyou for your advice.

Firstly. this is my first post ever on a forum, so i think i can be forgiven for making a fool of myself. i have no intention of becoming a contractor right now, because of the economic climate. i am just looking for general advice for the future. after all, you don't ask, you don't learn.....

**PM-Junkie** · 18 January 2009, 17:46

Feeding the trolls? Must be a quiet Sunday I guess.

Please Advise - im new to contracting!