Couple of contracting questions... Couple of contracting questions...
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  1. #1

    Default Couple of contracting questions...

    Hi Guys,

    I'm new here, in fact I've just registered

    So I was wondering if I may ask some more experienced contractors a couple of questions.

    I work in IT, as I'm sure many of the guys here do, and am currently and always have been, a permanent employee.

    I was offered a job in the USA, and I accepted.. however after 6 months of waiting, the visa has been refused and while the company still want me, if I can't legally live there I can't work, and so that's off the table now. Which has got me into thinking about what I want to do with my future. Which brings me here...

    I'm considering doing some consulting, so that I can spend some time in Spain between contracts, where I have family.

    Sorry for blabbing on, hopefully I've not bored you and I'll cut to the questions:

    1.) If I were to sign a 6 or 12 month contract, on a daily rate and decided that 3-4 months into the contract that it either wasn't working out, or I needed to travel somewhere for some reason.. what is the general policy with cancelling a contract? Is it the same as a standard employment contract? And/or is it frowned upon to end contracts early, would it give me a bad name in the contracting world.

    2.) IR35 - I've read a bit about this, but I'm pretty unclear as to what comes under this and whether it really costs so much. If a contract is only 3 to 6 months, would IR35 even come into play?

    3.) I've seen SO many websites which calculate how much you need to charge per day to equate your salary to that of an annual salary in a permanent position. I've been reading that LTD company is the way forward, but would you say the extra tax / accountant effort and cost are really justified compared to what you would earn from an Umbrella Company?

    I would like to thank you all in advance for your time to help me with these queries..

    Thanks
    Jon

  2. #2

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    Hello - there is a very useful first timers guide (to contracting) on the rhs menu. Have a read through this, which will answer all your questions + more !
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  3. #3

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    Quote Originally Posted by JonButterworth View Post
    1.) If I were to sign a 6 or 12 month contract, on a daily rate and decided that 3-4 months into the contract that it either wasn't working out, or I needed to travel somewhere for some reason.. what is the general policy with cancelling a contract? Is it the same as a standard employment contract? And/or is it frowned upon to end contracts early, would it give me a bad name in the contracting world.

    2.) IR35 - I've read a bit about this, but I'm pretty unclear as to what comes under this and whether it really costs so much. If a contract is only 3 to 6 months, would IR35 even come into play?

    3.) I've seen SO many websites which calculate how much you need to charge per day to equate your salary to that of an annual salary in a permanent position. I've been reading that LTD company is the way forward, but would you say the extra tax / accountant effort and cost are really justified compared to what you would earn from an Umbrella Company?
    1) You terminate the contract in line with whatever terms you agreed when you signed it. Depending on what you do and how you find work, leaving early might impact that or it might not.

    2) It might. Read the guide on the right over there >

    3) Yes.
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    Quote Originally Posted by RonBW View Post
    1) You terminate the contract in line with whatever terms you agreed when you signed it. Depending on what you do and how you find work, leaving early might impact that or it might not.

    2) It might. Read the guide on the right over there >

    3) Yes.
    And further to that, take a look at the (recently revised) IPSE website - www.ipse.co.uk - and download their Guide to Freelancing. Between that and the various guides on here you should have all the answers you need to understand your new trade properly.
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  6. #6

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    Quote Originally Posted by northernladuk View Post
    TL;DR
    Great addition to the mix, thanks for your input

    Thanks to the others though, I probably should have searched for answers before posting. I'll go an look up the resources you've mentioned now.

    Thanks
    Jon

  7. #7

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    Quote Originally Posted by JonButterworth View Post
    Great addition to the mix, thanks for your input

    Thanks to the others though, I probably should have searched for answers before posting. I'll go an look up the resources you've mentioned now.

    Thanks
    Jon
    Well, its kind of advice. Am sure your next post will be succinct and to the point and you will get lots of advice so kinda helps you
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    Quote Originally Posted by northernladuk View Post
    Well, its kind of advice. Am sure your next post will be succinct and to the point and you will get lots of advice so kinda helps you
    I thought it was to the point, actually, since the point itself was fairly wide-ranging and needed some context.

    YMMV - obviously...
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    Quote Originally Posted by malvolio View Post
    I thought it was to the point, actually, since the point itself was fairly wide-ranging and needed some context.

    YMMV - obviously...
    Sure they did.......
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