Redundancy...then contracting Redundancy...then contracting
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  1. #1

    Nervous Newbie


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    Default Redundancy...then contracting

    Hi,

    I've been a permi for near 15 years but now am one of the "chosen" few who have been asked to leave the company.

    Don't really want to get into the companies position but rather focus on what to do next. Basically I would be offered around £100k to leave with £30k tax free, and the remainder taxed as normal. As you would imagine I have build up a few contacts in my time so would probably be able to source another position inside the company (bank). but given the company has changed so much I feel I am ready for a new challenge.

    So my Q is - with mobility not being an issue, how is the market there for a newbie, and has anyone recently followed a similar path - although newbie in contracting, I do have years of enterprise scale infrastructure delivery.

    Cheers all,

  2. #2

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    I don't have any experience of your situation, but what I would say is that a large redundancy payment is almost like a free pass to give contracting a try.

    You might struggle to find a contract, so keep your eye on the permie market too, so you can drop back to permie if no contracts are forthcoming.

    Apply for any and all contracts matching your skills, and see what appears. You might be surprised, and find you get something paying well quickly. People often say on here, the second contract is the most difficult to find, but same applies, it's almost like a free pass to find the second one - obviously you current situation matters - any upcoming wedding, children, house move might preclude you from being too adventurous.

    There are a few changes happening in the contractor market the last couple of years, so have a read about them elsewhere on here, read some of the threads by people struggling to find contracts, read the newbie guides (so as not to anger the NLUK bear) so you can fully understand what you are getting into - it's not all massive day rates, cigars, and fast cars (for everyone anyway

  3. #3

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    Quote Originally Posted by jmo21 View Post
    I don't have any experience of your situation, but what I would say is that a large redundancy payment is almost like a free pass to give contracting a try.

    You might struggle to find a contract, so keep your eye on the permie market too, so you can drop back to permie if no contracts are forthcoming.

    Apply for any and all contracts matching your skills, and see what appears. You might be surprised, and find you get something paying well quickly. People often say on here, the second contract is the most difficult to find, but same applies, it's almost like a free pass to find the second one - obviously you current situation matters - any upcoming wedding, children, house move might preclude you from being too adventurous.

    There are a few changes happening in the contractor market the last couple of years, so have a read about them elsewhere on here, read some of the threads by people struggling to find contracts, read the newbie guides (so as not to anger the NLUK bear) so you can fully understand what you are getting into - it's not all massive day rates, cigars, and fast cars (for everyone anyway
    Thanks for the prompt reply. Re the pay-off, yes I was also thinking the same. Having a ready "war chest" will make it a tad-easier. I will check out the other posts/guides as your suggest. As for the changes in the market, is that IR35 or something else? I am fully aware of that one.

    cheers

  4. #4

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    Quote Originally Posted by Aqwsaq View Post
    Thanks for the prompt reply. Re the pay-off, yes I was also thinking the same. Having a ready "war chest" will make it a tad-easier. I will check out the other posts/guides as your suggest. As for the changes in the market, is that IR35 or something else? I am fully aware of that one.

    cheers
    you might also want to consider using a large chunk of the redundancy to put towards a pension. Just don't do that until closer to the year end and you have a better idea of what you are doing.
    Find an accountant (there's a sticky to help). You dont even have to start oayuing the accountant until you get a contract. When you get your first contract the accountant should be able to set up your company in a day or two, that way you don't pay for that until you need it.

    Good luck.
    See You Next Tuesday

  5. #5

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    Quote Originally Posted by Aqwsaq View Post
    Thanks for the prompt reply. Re the pay-off, yes I was also thinking the same. Having a ready "war chest" will make it a tad-easier. I will check out the other posts/guides as your suggest. As for the changes in the market, is that IR35 or something else? I am fully aware of that one.

    cheers
    yip.

  6. #6

    Fingers like lightning


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    Seriously doubt they would give you £100K unless your a board director or senior manager! Statutory redundancy is nowhere near that level even in banking.

  7. #7

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    Quote Originally Posted by uk contractor View Post
    Seriously doubt they would give you £100K unless your a board director or senior manager! Statutory redundancy is nowhere near that level even in banking.
    30 years in the NHS as an IT band 8 would do it.
    Has to be public sector to come close, or ex-public sector (utilities, rail, etc).
    See You Next Tuesday

  8. #8

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    Quote Originally Posted by uk contractor View Post
    Seriously doubt they would give you £100K unless your a board director or senior manager! Statutory redundancy is nowhere near that level even in banking.
    I was recently made redundant by a large US company and I received 6 weeks pay for each year of service. Colleagues on 15 years service were therefore getting almost 2 years of pay. I think that would be standard for a reputable international blue chip company.

    Being permie has its perks.
    Last edited by BlasterBates; 19th July 2019 at 18:25.
    I'm alright Jack

  9. #9

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    Quote Originally Posted by Aqwsaq View Post
    Hi,

    I've been a permi for near 15 years but now am one of the "chosen" few who have been asked to leave the company.

    Don't really want to get into the companies position but rather focus on what to do next. Basically I would be offered around £100k to leave with £30k tax free, and the remainder taxed as normal. As you would imagine I have build up a few contacts in my time so would probably be able to source another position inside the company (bank). but given the company has changed so much I feel I am ready for a new challenge.

    So my Q is - with mobility not being an issue, how is the market there for a newbie, and has anyone recently followed a similar path - although newbie in contracting, I do have years of enterprise scale infrastructure delivery.

    Cheers all,
    1. Brush up on typos / spelling. 'company's' and 'built'.
    2. Chop the 15 years up on the CV into something that more closely resembles projects or moving around. If the bank changed owners or names, use that to your advantage.
    3. In terms of the current market and impending IR35 stuff, it is safe to say, It is challenging.

    So, chuck the CV out there and make it happen. If you want to.

  10. #10

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    Quote Originally Posted by uk contractor View Post
    Seriously doubt they would give you £100K unless your a board director or senior manager! Statutory redundancy is nowhere near that level even in banking.
    Not true. I had a redundancy package in that price range and I know a good number of people who have got that level.

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