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new to contracting, what daily rate should i go for

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    new to contracting, what daily rate should i go for

    Hi

    Im currently on 50K ( as of april) and thinking of going contracting, if I go contracting Ideally i would like to take home at least 1k extra every month (thats after tax). on that basis what daily/ hourly rate should i seek ?

    the other quesiton is todo with job security, lets say i sign a 6 month contract. is it possible for the employer to terminate the contract early? and does it happen very often ?

    im new to contracting and have limited savings. I can survive up to 3-4 month only, it be a disaster if I resign from my permie role and also end up having my first contract terminated early.

    what are the measures I can take to ensure my first contract goes smoothly and doesnt get terminated before agreed end date?

    I guess one option would be to only consider long contracts for now, ideally 6+ month rolling contracts?
    any other advice?

    Thanks

    #2
    Originally posted by calacik View Post
    Hi

    Im currently on 50K ( as of april) and thinking of going contracting, if I go contracting Ideally i would like to take home at least 1k extra every month (thats after tax). on that basis what daily/ hourly rate should i seek ?

    the other quesiton is todo with job security, lets say i sign a 6 month contract. is it possible for the employer to terminate the contract early? and does it happen very often ?

    im new to contracting and have limited savings. I can survive up to 3-4 month only, it be a disaster if I resign from my permie role and also end up having my first contract terminated early.

    what are the measures I can take to ensure my first contract goes smoothly and doesnt get terminated before agreed end date?

    I guess one option would be to only consider long contracts for now, ideally 6+ month rolling contracts?
    any other advice?

    Thanks

    If you are on 50K then shoot for 500 pd contracts. Obviously this depends on your skillset and the industry you are targetting. Is it banks mainly ?

    Cntracting does not provide job security. Only your skills will provide you with security you need. If you are good you finish a contract and jump into another and so on. No contract is long term, there is a reason why you get paid more.

    To ensure your contract does not terminated make sure you do your job properly and pray that the economy does well and there are no economic catastrophe triggers like Greece exiting Euro, Spain defaulting, UK going to IMF begging for cash etc etc.
    Vote Corbyn ! Save this country !

    Comment


      #3
      Originally posted by fullyautomatix View Post
      If you are on 50K then shoot for 500 pd contracts. Obviously this depends on your skillset and the industry you are targetting. Is it banks mainly ?

      Cntracting does not provide job security. Only your skills will provide you with security you need. If you are good you finish a contract and jump into another and so on. No contract is long term, there is a reason why you get paid more.

      To ensure your contract does not terminated make sure you do your job properly and pray that the economy does well and there are no economic catastrophe triggers like Greece exiting Euro, Spain defaulting, UK going to IMF begging for cash etc etc.

      WTF!

      £50k <> £500 p/d. He needs to be aiming at £700 p/d minimum to cover for bench time.

      Don't give crap advice.
      What happens in General, stays in General.
      You know what they say about assumptions!

      Comment


        #4
        Originally posted by MarillionFan View Post
        WTF!

        £50k <> £500 p/d. He needs to be aiming at £700 p/d minimum to cover for bench time.

        Don't give crap advice.

        I really doubt that in this economic climate anybody who is on 50K permie role will get a contract role for 700 p/d. I could be wrong but I have my doubts. You are looking at solution architects, programme managers and they wont be on 50K salary as permie.
        Vote Corbyn ! Save this country !

        Comment


          #5
          Originally posted by calacik View Post
          Hi

          Im currently on 50K

          I guess one option would be to only consider long contracts for now, ideally 6+ month rolling contracts?
          any other advice?

          Thanks
          You would be absolutely bonkers to quit that role and go permie in the current economic climate. Especially given the salary, and your other commitments, it's a no brainer. Just consider what you would be giving up, security for starters. Not that any role is really secure these days, what with the cuts and off shoring. Then there is the support, where will you be without your boss breathing down your neck, one to ones, 360's and treating you unfairly. Who needs all that eh ? so go for a contact role asap, the future will take care of itself. It's a no-brainer




          (\__/)
          (>'.'<)
          ("")("") Born to Drink. Forced to Work

          Comment


            #6
            Originally posted by calacik View Post
            Hi

            Im currently on 50K ( as of april) and thinking of going contracting, if I go contracting Ideally i would like to take home at least 1k extra every month (thats after tax). on that basis what daily/ hourly rate should i seek ?

            the other quesiton is todo with job security, lets say i sign a 6 month contract. is it possible for the employer to terminate the contract early? and does it happen very often ?

            im new to contracting and have limited savings. I can survive up to 3-4 month only, it be a disaster if I resign from my permie role and also end up having my first contract terminated early.

            what are the measures I can take to ensure my first contract goes smoothly and doesnt get terminated before agreed end date?

            I guess one option would be to only consider long contracts for now, ideally 6+ month rolling contracts?
            any other advice?

            Thanks
            50k is a decent wedge - do you really want to give that up?
            You won't have an employer
            Yes, contracts do get terminated early - all mine have been - which is why I'm posting from under a bridge at Spaghetti Junction.
            +50 Xeno Geek Points
            Come back Toolpusher, scotspine, Voodooflux. Pogle
            As for the rest of you - DILLIGAF

            Purveyor of fine quality smut since 2005

            CUK Olympic University Challenge Champions 2010/2012

            Comment


              #7
              Originally posted by Zippy View Post
              I'm posting from under a bridge at Spaghetti Junction.
              Liar! You're lurking in witchspace in one of those spidery spaceships. We can see you, you know

              Comment


                #8
                Originally posted by calacik View Post
                Hi

                Im currently on 50K ( as of april) and thinking of going contracting, if I go contracting Ideally i would like to take home at least 1k extra every month (thats after tax). on that basis what daily/ hourly rate should i seek ?

                the other quesiton is todo with job security, lets say i sign a 6 month contract. is it possible for the employer to terminate the contract early? and does it happen very often ?

                im new to contracting and have limited savings. I can survive up to 3-4 month only, it be a disaster if I resign from my permie role and also end up having my first contract terminated early.

                what are the measures I can take to ensure my first contract goes smoothly and doesnt get terminated before agreed end date?

                I guess one option would be to only consider long contracts for now, ideally 6+ month rolling contracts?
                any other advice?

                Thanks
                There are calculators you can use, like for like with your 50K salary is £216 per day. This is however much less than you should go for, aim for 500 but settle for 400 I would say. After your first contract, at either of those rates you are up and running.

                Lots of projects gets canned half way through so be prepared for early termination, its nothing you can do about that. Don't consider long contracts just for the security, and be aware of taking a lower rate for a longer contract - they might just bin you half way through anyway.

                Comment


                  #9
                  A contract is only a long as the notice written notice period at most and some aren't even that long..

                  Example:
                  6 month rolling contract, notice period 1 week

                  In 2 weeks time your told that theres a delay on the project, nothing more to be done, go home, we'll call you when it's ready, boss wont sign timesheet as there was no work done, shortly afterwards agent phones up and tells you they've had a complaint about your attitude and therefore it's over.

                  No signed timesheet = no pay.
                  No work and not onsite = no reason to sign timesheet.
                  False claim about attitude = easy cheap reason to get rid of contractor.
                  Taking agent/client to court = expensive way to find out you get very little money.
                  The proud owner of 125 Xeno Geek Points

                  Comment


                    #10
                    If you want to get scientific about it...

                    How much net do you need each month to pay the mortgage and stay alive. Add 30% to cover tax losses (I know, bear with me)

                    How much does it cost to do the job - transport, food , accomodation, whatever. How much will you be paying out on insurance, PCG membership, accountancy fees, critical illness cover, pension provision, training and all the other hidden things you get as a permie that you never see.

                    Add those two together, divide by 20. That's your absolute minimum day rate: not, however, what you need to earn.

                    Work on earning for seven months a year (not unrealistic in today's world; I've been looking for six weeks now). That's 140 days. Still convinced you can cover a £50k salary?

                    As a rule of thumb, the agencies use 10% of permie salary as the day rate, so £50k = £500, as has been said, but that includes thier margins. Alternatively, salary divided by 1000 gives an hourly rate necessary to cover all your overheads and return much the same net. £50 an hour is £400 a day.

                    But you don't get the well paid gigs without being either very good, very senior or very niche; there is way too much competetion from experienced, establlished contractors. Do your sums on £350 a day and see how it works out.
                    Blog? What blog...?

                    Comment

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