IT Contracting - anyone here do it?
Discussion
So today marks the start of my 6th week here. Really enjoyed it to be honest.
I've got a permanent job starting on the 15th of Oct, so will be hanging up my contracting gloves on the 10th.
The gap inbetween shall be spent at the Nurburgring!
Overall the experience has been good, the only downfall is actually getting paid. My Umbrella company Nasa are brilliant, but the company I'm working for's finance department are very slow on getting payments sent. I'm meant to be on weekly pay and so far have only had pay from the first 2 weeks... I'm not struggling financially so maybe they're doing me a favour if I get the cash in one lump!
I've got a permanent job starting on the 15th of Oct, so will be hanging up my contracting gloves on the 10th.
The gap inbetween shall be spent at the Nurburgring!
Overall the experience has been good, the only downfall is actually getting paid. My Umbrella company Nasa are brilliant, but the company I'm working for's finance department are very slow on getting payments sent. I'm meant to be on weekly pay and so far have only had pay from the first 2 weeks... I'm not struggling financially so maybe they're doing me a favour if I get the cash in one lump!
DanielJames said:
So today marks the start of my 6th week here. Really enjoyed it to be honest.
I've got a permanent job starting on the 15th of Oct, so will be hanging up my contracting gloves on the 10th.
The gap inbetween shall be spent at the Nurburgring!
Overall the experience has been good, the only downfall is actually getting paid. My Umbrella company Nasa are brilliant, but the company I'm working for's finance department are very slow on getting payments sent. I'm meant to be on weekly pay and so far have only had pay from the first 2 weeks... I'm not struggling financially so maybe they're doing me a favour if I get the cash in one lump!
Glad the jump in going contracting is working out for you.I've got a permanent job starting on the 15th of Oct, so will be hanging up my contracting gloves on the 10th.
The gap inbetween shall be spent at the Nurburgring!
Overall the experience has been good, the only downfall is actually getting paid. My Umbrella company Nasa are brilliant, but the company I'm working for's finance department are very slow on getting payments sent. I'm meant to be on weekly pay and so far have only had pay from the first 2 weeks... I'm not struggling financially so maybe they're doing me a favour if I get the cash in one lump!
Are you working for an agency or are you direct to the client? If it's an agency this should be raising very serious red flags and you should be asking your umbrella why they're not chasing this for you. If an agency has cash flow problems then late payments are often the first sign, followed by no payment at all.
If you're not already a member I'd strongly suggest joining IPSE (formerly the Professional Contractors Group), who in addition to many other benefits provide insurances against agencies going under.
http://www.ipse.co.uk/member-benefits
DanielJames said:
So today marks the start of my 6th week here. Really enjoyed it to be honest.
I've got a permanent job starting on the 15th of Oct, so will be hanging up my contracting gloves on the 10th.
Have your umbrella explained the consequences for any travel expenses claims you have, considering this will be your only gig? Big assumption you are claiming, of course I've got a permanent job starting on the 15th of Oct, so will be hanging up my contracting gloves on the 10th.
bigandclever said:
Have your umbrella explained the consequences for any travel expenses claims you have, considering this will be your only gig? Big assumption you are claiming, of course
Nope, please explain? I was told to claim my mileage at around £12 per day, and meal allowance at £10 per day, but not entirely sure where that money goes. Tax reduction isn't it?pespro said:
Hi all,
The only area i can think of is IT security, i know there is high demand for people with skills in this sector. But after looking around it seems without a Computer Science degree, there isn't much chance of learning the skills needed without this degree as a foundation. There are courses such as CCNA Security but without that degree it seems pointless.
I have a degree in Computing Networks. I didnt really enjoy it, it was boring, however i think if i became a network engineer it would be a lot more hands on than the Uni course was. But with no jobs doing network engineer etc i might struggle getting a job doing this.
IT Sec is one of those annoying things that initially it's tough to get a gig in it if you have no experience, but you can't get the experience without a role!The only area i can think of is IT security, i know there is high demand for people with skills in this sector. But after looking around it seems without a Computer Science degree, there isn't much chance of learning the skills needed without this degree as a foundation. There are courses such as CCNA Security but without that degree it seems pointless.
I have a degree in Computing Networks. I didnt really enjoy it, it was boring, however i think if i became a network engineer it would be a lot more hands on than the Uni course was. But with no jobs doing network engineer etc i might struggle getting a job doing this.
As it happens, we might be looking into hiring a junior, PM me if you're interested (Permie only though I'm afraid!)
Edited by Tonsko on Monday 29th September 23:06
DanielJames said:
Nope, please explain? I was told to claim my mileage at around £12 per day, and meal allowance at £10 per day, but not entirely sure where that money goes. Tax reduction isn't it?
Umbrellas operate overarching contracts of employment. If you're only intending on undertaking one assignment under that contract then you're not entitled to claim any subsistence or travel expenses as HMRC consider it a permanent workplace.Further details on page 3 on the link below:
https://www.professionalpassport.com/pdfs/Contract...
I suggest you talk to your umbrella company!
oilslick said:
Umbrellas operate overarching contracts of employment. If you're only intending on undertaking one assignment under that contract then you're not entitled to claim any subsistence or travel expenses as HMRC consider it a permanent workplace.
Further details on page 3 on the link below:
https://www.professionalpassport.com/pdfs/Contract...
I suggest you talk to your umbrella company!
I will call them tomorrow, thanks for bringing this to my attention!Further details on page 3 on the link below:
https://www.professionalpassport.com/pdfs/Contract...
I suggest you talk to your umbrella company!
DanielJames said:
oilslick said:
Umbrellas operate overarching contracts of employment. If you're only intending on undertaking one assignment under that contract then you're not entitled to claim any subsistence or travel expenses as HMRC consider it a permanent workplace.
Further details on page 3 on the link below:
https://www.professionalpassport.com/pdfs/Contract...
I suggest you talk to your umbrella company!
I will call them tomorrow, thanks for bringing this to my attention!Further details on page 3 on the link below:
https://www.professionalpassport.com/pdfs/Contract...
I suggest you talk to your umbrella company!
Well I'm back into permanent employment. If I was going to contract again I'd definitely go self employed/LTD compay route. I cant help but think the Umbrella company have screwed me a bit.
For example I've just been paid for my final 2 weeks, £150 a day so £1500 total. I received £840 from that.
What I perhaps underestimated is how sneeky you need to be to make it worthwhile with regard to expenses, and that I would need to pay not just my own NI but also that of the employer.
For example I've just been paid for my final 2 weeks, £150 a day so £1500 total. I received £840 from that.
What I perhaps underestimated is how sneeky you need to be to make it worthwhile with regard to expenses, and that I would need to pay not just my own NI but also that of the employer.
Dr Jekyll said:
DanielJames said:
For example I've just been paid for my final 2 weeks, £150 a day so £1500 total. I received £840 from that.
That's shocking I'd have expected £1000+. Where on earth did the remainder go?oilslick said:
Dr Jekyll said:
That's shocking I'd have expected £1000+. Where on earth did the remainder go?
Assuming a tax code of 1000L deductions would be something like this:Employer's NI 159.89
Employee's NI 88.35
Employee Tax 324.72
Umbrella Fee 80
TheAngryDog said:
That doesn't make contracting look worth while on £150 a day. Im on more than that as a permie.
That's going via an umbrella.Via a ltd co;
£1500 for ten days - say £36000 invoiced per year (48 weeks)
pay a salary £8k ish
= £28k profit
less 20% corp tax and say £500pa accounting fees
= £21900
Assume you took all that as a dividend (tax free) then that's £29900 take home, or the equivalent of a £40k salary.
essayer said:
TheAngryDog said:
That doesn't make contracting look worth while on £150 a day. Im on more than that as a permie.
That's going via an umbrella.Via a ltd co;
£1500 for ten days - say £36000 invoiced per year (48 weeks)
pay a salary £8k ish
= £28k profit
less 20% corp tax and say £500pa accounting fees
= £21900
Assume you took all that as a dividend (tax free) then that's £29900 take home, or the equivalent of a £40k salary.
I want do take on contract work, but I also need to get a mortgage at some point, and the two arent compatible for the first few years. Plus I think I need to hone my skills more in the role I am in, annoyingly.
TheAngryDog said:
That wouldnt be bad. I presume that this is at the lower end of the pay scales?
I want do take on contract work, but I also need to get a mortgage at some point, and the two arent compatible for the first few years. Plus I think I need to hone my skills more in the role I am in, annoyingly.
It's also dodging IR35, something I've never managed to do.I want do take on contract work, but I also need to get a mortgage at some point, and the two arent compatible for the first few years. Plus I think I need to hone my skills more in the role I am in, annoyingly.
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