Contract advice for a first timer

[unnamedcontractor]

Hi all

I am currently thinking about the possibility of contracting for a while to see if I like it. I did have a couple of questions that I am hoping some generous souls might be able to help me with! Any advice would be gratefully received

1. I am likely to take my first contract through an agency. Computer Futures or Nigel Frank seem likely contenders.
One thing I'm not sure of in this case is, who is responsbile for writing the contract? I've seen reference on the forums that seem to indicate that the agency is going to come up with a contract that will govern the work. Is this the case or should I expect to need to source one that I am happy with?

2. With a contract that the agency is providing is it likely that the contract will be sufficent to keep me out of IR35? Will the agency understand what I'm going on about if I start to insist that the contract must be written in such away as to avoid any IR35 issues? I am almost expecting to wonder what I am going on about based on some conversations I've had with junior members of staff. I'm hoping that dealing with the contracts side of the business, the people involved will be more understanding

My basic issue is that I would very much like to move into contracting, but given the risks involved it is *only* worth me doing it if I do it as my own limited company and any contract would pass IR35. Under all other circumstances I would really just be throwing in a pretty well paying job for one where I am earning a bit more but could be fired at the drop of a hat!

Thanks again for any advice someone can offer

Cheers

S

[jmo21]

1) in {made up large percentage} of cases, the agent wil give you the contract to sign

2) many are, many aren't. Get it reviewed (QDOS, Baur & Cotterell? Spelling?)
Some contract will be found to be ir35 unfriendly, the review should tell you what the issue is. The agent will moan 'no one has ever complained before', but they're lying and just trying to avoid the hassle of changing it

[northernladuk]

Hi all

I am currently thinking about the possibility of contracting for a while to see if I like it. I did have a couple of questions that I am hoping some generous souls might be able to help me with! Any advice would be gratefully received

It's not just a matter of liking it. It's whether or not you understand the risks that come with it as well. Long periods on the bench, binned at a days notice, building a warchest, willingness to travel or stay away for gigs, taking the tulip that permies don't or being scapegoat, willingness to run your own finances properly, ability to stand on your own two feet and research stuff properly as there is no one there to hold your hand. You need to look in to it a lot more first. It's not a matter of getting a contract and bobs your uncle.

1. I am likely to take my first contract through an agency. Computer Futures or Nigel Frank seem likely contenders.

You already have it wrong, you take the gig whoever it is through, agents have a number of clients they service. If you stick to one agent you are banking on the fact that agent finds a gig that is suitable for you in a reasonable timescale and that you can actually get the gig. He won't put you above anyone else, he is working for himself that that's it. He will put the best body in he can to get his money. There is no preferential treatment and he doesn't work on your behalf. He works for him. He sells gigs, nothing more, nothing less, and he will be thoroughly unscrupulous in the way he does it.

One thing I'm not sure of in this case is, who is responsible for writing the contract? I've seen reference on the forums that seem to indicate that the agency is going to come up with a contract that will govern the work. Is this the case or should I expect to need to source one that I am happy with?

Your contract will be with the agency, he will provide you with one that suits him and has been checked legally. You can negotiate some elements sometimes but that's it. They will very rarely take someone else's contract as it may open him to clauses he doesn't understand.

2. With a contract that the agency is providing is it likely that the contract will be sufficent to keep me out of IR35? Will the agency understand what I'm going on about if I start to insist that the contract must be written in such away as to avoid any IR35 issues? I am almost expecting to wonder what I am going on about based on some conversations I've had with junior members of staff. I'm hoping that dealing with the contracts side of the business, the people involved will be more understanding

It is up to you to make sure it's outside IR35 and a contract alone will not do that. IR35 is mainly down to working practices and these will override the contract. The agent doesn't give a monkies about your tax situation. Read up on IR35 and understand it.. very well.

You also need to understand about Opting in or out of the employment regs. There is a sticky discussing this in detail. Another trick the agencies try pull and you need to get right.

My basic issue is that I would very much like to move into contracting, but given the risks involved it is *only* worth me doing it if I do it as my own limited company and any contract would pass IR35. Under all other circumstances I would really just be throwing in a pretty well paying job for one where I am earning a bit more but could be fired at the drop of a hat!

So you want it nice and easy, on a plate, no risk and just sit back and watch the money roll in? Unfortunately so do 1.5 million other contractors and a tulip load of permies who are not contractors yet. If it was so easy everyone would be contracting. You don't pass IR35 either, you are in or you are out. Just a note, contractors don't get fired, they get terminated. The whole point of companies using contractors is that they are a flexible workforce. They can more or less do what they want with us. They can terminate our contracts using the notice periods, claim misconduct and get rid on the spot or they can just say there is no more work and you don't get another penny. We get paid to work, if there is no work we don't get paid. Clients can, and most certainly do all the above. Try searching the forums and you will see. It isn't unheard of to turn up to the gig on the first day for the client to say no thanks and your done. No comeback and back to the bench.

Contracting is not an easy life, it's well paid but it has risks. Many on here have gone back permie penniless, some have lost their houses and are still facing financial ruin through poor payment provider choices.

Your first job is to start researching. Look at the newbie guides to the right and read them all. Learn how to use the search method on here and use it extensively. The link below explains it. Everything is on the forum you could possibly think to ask.

http://forums.contractoruk.com/welco...uk-forums.html

Once you have done all that and still feel it's for you then it's decision time.

[DirtyDog]

2. With a contract that the agency is providing is it likely that the contract will be sufficent to keep me out of IR35?

Nope, because (as your research will have shown), IR35 is based on the reality of the working conditions, not what is written in the contract.

[JPennW]

As I'm about to embark on the contractor life, this is all good advice, which you can find elsewhere on the forum. As NorthernLad states, learn how to use the search function - you will unearth everything you need to start. It's the first place I come with any questions, and as a result I've not yet had to post any questions.

As stated above, if you've really done your research (and I assume you have) you just need to make the decision to contract or not, but make sure you know the risks - more so than the benefits I'd argue. Good luck!