1st Time Contractor - General Query

[JoMac]

Hi
As the title of this post suggests I'm a first time contractor and apologies for the simple question I'm about to ask.
I'm about to come to the end of my first contract and have had a few interviews for my next possible one and have a couple in the pipeline.
A few contractors I have worked with all say "it's good to have a break between contracts" and those that are also coming to the end of a contract are doing exactly that.
I guess my query is are they suggesting this simply just to recharge the batteries or is there another reason i.e. Tax reasons etc.
Apologies for the simple question but I'm still finding my feet in all of this. Thanks

[malvolio]

Not working and so not earning is a good way to save on tax payments...

Seriously though, you need to realise you're in business now; your job is not being whatever you do for your client, it's being a freelance, independent contractor. Right now the main priority is to keep earning. When you have enough in the bank so you don't worry about some months without income, then you can afford to take a break. However, at this stage - unless you are on stupidly high money - getting the second gig is the really hard part, followed by establishing yourself as a credible contractor. Get that second job sorted, finish it and then see how you feel about deliberately not earning.

And another thing: take financial advice from accountants or recognised experts like paid IFAs or IPSE or as a last resort from the more experienced people on here ( ). Most contractors have little idea on the realities of contracting, much less tax management

[washed up contractor]

There's no right or wrong way about it, it is down to personal choice. Some contractors are paranoid about being unpaid between contracts so must finish on Friday and start anew on Monday. Others like a break especially if they've been in a long contract, lived away from home or had a long commute.

Some clients dont like to see breaks between contracts because even though we're contractors, they think about us with a permie mindset.

All Id say is beware a month break can very quickly become 3 and 4 months (or longer) depending how the market is for your specialism. Plenty will say the market is bouyant. It might be but equally, might not be, you'll be the best judge of that.

[SueEllen]

The reason to have a break is if you have done a long contract and not had a holiday.

Only be aware of you holiday in Europe including the UK and have your CV out you will be taking calls from agents on holiday.

[ladymuck]

Ditto the above comments. It's a personal choice and it's entirely up to you. If you want a break, get the next gig lined up and, when you're settled, say you're taking a short holiday and go off for a couple of weeks. Unless you've got a critical deliverable coming up, no client will be upset. When you come back, there's no gig hunting to do and there's no break on your CV.

[northernladuk]

I like the breaks to catch up with stuff I've put off. I don't take the occasional days here and there like permies and some contractors so the end of the gig is the perfect time. With end to end gigs these jobs tend to pile up.