Moving into IT Contracting for the first time? I'm clueless!
Discussion
Hi all.
I'm basically looking to move into IT Contracting. I've had a pretty crappy career history to be honest, and I'm feeling pretty down in the dumps currently. I got a job I really liked, but it is ending in the middle of April thanks to them not being completely happy with me.
I'm gutted, but need to use this as some kind of positive opportunity. At 31 years old, I'm fed up of never really having been a success and feel genuinely determined to finally do something about it.
I've had a tough 12 months in all honesty. Moving house, leaving my previous job because I got sick of putting up with a workplace bully and being offered zero protection from HR or my manager, etc. etc.
It seems this place didn't like the working habits I came with from my old job, which included using Skype to communicate with people during the day, the boss got the hump with me reading the paper at my desk on my lunch, and so on. I stamped all of this stuff out when it was raised, but it still seems to have been held against me, which is really disappointing.
But I've never worked anywhere for more than maybe two and a half years. I get bored, I get de-motivated, I start wanting to move on and I think it has really negatively affected me up to this point.
So I've decided to start looking at contracting. I've always fancied it but been a bit scared of the uncertainty I associate with it. But the money on offer seems to be much better than the equivalent permanent job. I really like the idea of going in and doing 6 to 12 months somewhere then moving on to a new project.
I've come to the conclusion that it is much more rewarding to have a specialism, so I'm going in for my MCITP for Exchange 2010, then upgrading it to an MCSE MEssaging for Exchange 2013 over the course of this year. I'm worried it will be difficult to get onto Exchange contracting roles in the beginning, but I am sure I will find something.
What I really want to know is what other peoples' experiences of moving into contracting have been, and what I should consider regarding setting up a LTD company, going with an Umbrella company etc. I'm not sure how difficult it is to do your own tax, and how you work it all out etc. as surely you don't know exactly what you'll earn over the course of a year?
Any advice would be appreciated. I need to get out of this rut and do something with my career!
I'm basically looking to move into IT Contracting. I've had a pretty crappy career history to be honest, and I'm feeling pretty down in the dumps currently. I got a job I really liked, but it is ending in the middle of April thanks to them not being completely happy with me.
I'm gutted, but need to use this as some kind of positive opportunity. At 31 years old, I'm fed up of never really having been a success and feel genuinely determined to finally do something about it.
I've had a tough 12 months in all honesty. Moving house, leaving my previous job because I got sick of putting up with a workplace bully and being offered zero protection from HR or my manager, etc. etc.
It seems this place didn't like the working habits I came with from my old job, which included using Skype to communicate with people during the day, the boss got the hump with me reading the paper at my desk on my lunch, and so on. I stamped all of this stuff out when it was raised, but it still seems to have been held against me, which is really disappointing.
But I've never worked anywhere for more than maybe two and a half years. I get bored, I get de-motivated, I start wanting to move on and I think it has really negatively affected me up to this point.
So I've decided to start looking at contracting. I've always fancied it but been a bit scared of the uncertainty I associate with it. But the money on offer seems to be much better than the equivalent permanent job. I really like the idea of going in and doing 6 to 12 months somewhere then moving on to a new project.
I've come to the conclusion that it is much more rewarding to have a specialism, so I'm going in for my MCITP for Exchange 2010, then upgrading it to an MCSE MEssaging for Exchange 2013 over the course of this year. I'm worried it will be difficult to get onto Exchange contracting roles in the beginning, but I am sure I will find something.
What I really want to know is what other peoples' experiences of moving into contracting have been, and what I should consider regarding setting up a LTD company, going with an Umbrella company etc. I'm not sure how difficult it is to do your own tax, and how you work it all out etc. as surely you don't know exactly what you'll earn over the course of a year?
Any advice would be appreciated. I need to get out of this rut and do something with my career!
TroubledSoul said:
Hi all.
I'm basically looking to move into IT Contracting. I've had a pretty crappy career history to be honest, and I'm feeling pretty down in the dumps currently. I got a job I really liked, but it is ending in the middle of April thanks to them not being completely happy with me.
I'm gutted, but need to use this as some kind of positive opportunity. At 31 years old, I'm fed up of never really having been a success and feel genuinely determined to finally do something about it.
I've had a tough 12 months in all honesty. Moving house, leaving my previous job because I got sick of putting up with a workplace bully and being offered zero protection from HR or my manager, etc. etc.
It seems this place didn't like the working habits I came with from my old job, which included using Skype to communicate with people during the day, the boss got the hump with me reading the paper at my desk on my lunch, and so on. I stamped all of this stuff out when it was raised, but it still seems to have been held against me, which is really disappointing.
But I've never worked anywhere for more than maybe two and a half years. I get bored, I get de-motivated, I start wanting to move on and I think it has really negatively affected me up to this point.
So I've decided to start looking at contracting. I've always fancied it but been a bit scared of the uncertainty I associate with it. But the money on offer seems to be much better than the equivalent permanent job. I really like the idea of going in and doing 6 to 12 months somewhere then moving on to a new project.
I've come to the conclusion that it is much more rewarding to have a specialism, so I'm going in for my MCITP for Exchange 2010, then upgrading it to an MCSE MEssaging for Exchange 2013 over the course of this year. I'm worried it will be difficult to get onto Exchange contracting roles in the beginning, but I am sure I will find something.
What I really want to know is what other peoples' experiences of moving into contracting have been, and what I should consider regarding setting up a LTD company, going with an Umbrella company etc. I'm not sure how difficult it is to do your own tax, and how you work it all out etc. as surely you don't know exactly what you'll earn over the course of a year?
Any advice would be appreciated. I need to get out of this rut and do something with my career!
Where to start.....first of all there are lots of threads on here about contracting. Would be worth looking through. Also try http://www.contractoruk.com/ but don't post in the forum until you've done plenty of research and grown a thick skin. It can be brutal on there.I'm basically looking to move into IT Contracting. I've had a pretty crappy career history to be honest, and I'm feeling pretty down in the dumps currently. I got a job I really liked, but it is ending in the middle of April thanks to them not being completely happy with me.
I'm gutted, but need to use this as some kind of positive opportunity. At 31 years old, I'm fed up of never really having been a success and feel genuinely determined to finally do something about it.
I've had a tough 12 months in all honesty. Moving house, leaving my previous job because I got sick of putting up with a workplace bully and being offered zero protection from HR or my manager, etc. etc.
It seems this place didn't like the working habits I came with from my old job, which included using Skype to communicate with people during the day, the boss got the hump with me reading the paper at my desk on my lunch, and so on. I stamped all of this stuff out when it was raised, but it still seems to have been held against me, which is really disappointing.
But I've never worked anywhere for more than maybe two and a half years. I get bored, I get de-motivated, I start wanting to move on and I think it has really negatively affected me up to this point.
So I've decided to start looking at contracting. I've always fancied it but been a bit scared of the uncertainty I associate with it. But the money on offer seems to be much better than the equivalent permanent job. I really like the idea of going in and doing 6 to 12 months somewhere then moving on to a new project.
I've come to the conclusion that it is much more rewarding to have a specialism, so I'm going in for my MCITP for Exchange 2010, then upgrading it to an MCSE MEssaging for Exchange 2013 over the course of this year. I'm worried it will be difficult to get onto Exchange contracting roles in the beginning, but I am sure I will find something.
What I really want to know is what other peoples' experiences of moving into contracting have been, and what I should consider regarding setting up a LTD company, going with an Umbrella company etc. I'm not sure how difficult it is to do your own tax, and how you work it all out etc. as surely you don't know exactly what you'll earn over the course of a year?
Any advice would be appreciated. I need to get out of this rut and do something with my career!
That aside, I must warn you. Contracting is not for everyone. You need a thick skin and the ability to work with all sorts of people some senior and some not so. In order to be successful you'll need to get on with most, adapt to any working practices, some you might not agree with, deliver sometimes to unrealistic timescales and very usually see the permies take the thanks for your work. Occasionally you might stumble on a fantastic contract where you are appreciated and like the environment.
Additionally it is really bad form (IMO) to start a contract and not finish it. You will build up a better relationship with an agency if you are reliable and especially if you work in a niche market, your reputation might be your best asset.
Reading through your post, I think you need to have a good think about whether it is contracting you want or would a change of career be more beneficial.
Reputation is both everything and nothing all at once, get a good one and you'll not struggle to find work, but if you are lucky enough to have in demand skills and your reputation won't matter so much.
Reading your post through I could see how you could have come across as work shy to your boss, this is the last thing that you need to be appearing as a contractor. Get in early, leave late, know your stuff and always look busy - an idle contractor is one that is begging to be cut. If you aren't working out they'll bin you straight away as a contractor, you are usually there as a quick fix to something that has been festering for a while, so patience will have worn thin before you even start.
Try to save as much of your income as you can, plan for extended periods of time without work. You also need to allow cash and time for upgrading your skills, very unlikely you'll be given the space and time to learn new skills as a contractor unlike a permanent member of staff.
Reading your post through I could see how you could have come across as work shy to your boss, this is the last thing that you need to be appearing as a contractor. Get in early, leave late, know your stuff and always look busy - an idle contractor is one that is begging to be cut. If you aren't working out they'll bin you straight away as a contractor, you are usually there as a quick fix to something that has been festering for a while, so patience will have worn thin before you even start.
Try to save as much of your income as you can, plan for extended periods of time without work. You also need to allow cash and time for upgrading your skills, very unlikely you'll be given the space and time to learn new skills as a contractor unlike a permanent member of staff.
worsy said:
Where to start.....first of all there are lots of threads on here about contracting. Would be worth looking through. Also try http://www.contractoruk.com/ but don't post in the forum until you've done plenty of research and grown a thick skin. It can be brutal on there.
That aside, I must warn you. Contracting is not for everyone. You need a thick skin and the ability to work with all sorts of people some senior and some not so. In order to be successful you'll need to get on with most, adapt to any working practices, some you might not agree with, deliver sometimes to unrealistic timescales and very usually see the permies take the thanks for your work. Occasionally you might stumble on a fantastic contract where you are appreciated and like the environment.
Additionally it is really bad form (IMO) to start a contract and not finish it. You will build up a better relationship with an agency if you are reliable and especially if you work in a niche market, your reputation might be your best asset.
Reading through your post, I think you need to have a good think about whether it is contracting you want or would a change of career be more beneficial.
Thanks very much. That aside, I must warn you. Contracting is not for everyone. You need a thick skin and the ability to work with all sorts of people some senior and some not so. In order to be successful you'll need to get on with most, adapt to any working practices, some you might not agree with, deliver sometimes to unrealistic timescales and very usually see the permies take the thanks for your work. Occasionally you might stumble on a fantastic contract where you are appreciated and like the environment.
Additionally it is really bad form (IMO) to start a contract and not finish it. You will build up a better relationship with an agency if you are reliable and especially if you work in a niche market, your reputation might be your best asset.
Reading through your post, I think you need to have a good think about whether it is contracting you want or would a change of career be more beneficial.
I'm certain that contracting is the way to go. I just want to make sure I do everything the right way.
I like changing my environment and I enjoy working with different people.
tankplanker said:
Reputation is both everything and nothing all at once, get a good one and you'll not struggle to find work, but if you are lucky enough to have in demand skills and your reputation won't matter so much.
Reading your post through I could see how you could have come across as work shy to your boss, this is the last thing that you need to be appearing as a contractor. Get in early, leave late, know your stuff and always look busy - an idle contractor is one that is begging to be cut. If you aren't working out they'll bin you straight away as a contractor, you are usually there as a quick fix to something that has been festering for a while, so patience will have worn thin before you even start.
Try to save as much of your income as you can, plan for extended periods of time without work. You also need to allow cash and time for upgrading your skills, very unlikely you'll be given the space and time to learn new skills as a contractor unlike a permanent member of staff.
Thank you. I'm always happy to stay late if it means getting stuff done so that's not a problem. Just have to be very conscious of making sure I'm perceived to be valuable and working hard. Reading your post through I could see how you could have come across as work shy to your boss, this is the last thing that you need to be appearing as a contractor. Get in early, leave late, know your stuff and always look busy - an idle contractor is one that is begging to be cut. If you aren't working out they'll bin you straight away as a contractor, you are usually there as a quick fix to something that has been festering for a while, so patience will have worn thin before you even start.
Try to save as much of your income as you can, plan for extended periods of time without work. You also need to allow cash and time for upgrading your skills, very unlikely you'll be given the space and time to learn new skills as a contractor unlike a permanent member of staff.
During my own time or downtime I will look to fit exams and the like in.
Contractors never stay late. our daly rate is just contracted hours during the day. Anymore then its OT and PO time 
Go for it. I have zero regrets about going contract. It can ber a bit of pain what with VAT, reciepts and HMRC stuff but get a decent accountant and let them do it all. If you can register your company at their (accountants) place so most things get actioned as its not always possible to work near to where you live. Which leads me onto ... would you be willing to work away from home 5 days a week?

Go for it. I have zero regrets about going contract. It can ber a bit of pain what with VAT, reciepts and HMRC stuff but get a decent accountant and let them do it all. If you can register your company at their (accountants) place so most things get actioned as its not always possible to work near to where you live. Which leads me onto ... would you be willing to work away from home 5 days a week?
Edited by Sexual Chocolate on Thursday 14th March 15:07
Edited by Sexual Chocolate on Thursday 14th March 15:09
I was made redundant several years back and decided that having the redundancy money in the bank to tide me over it was the ideal time to have a go at contracting.
I found http://www.pcg.org.uk/ really usefull when I started up, found a good guide on there about the advanteges of limited companies, umbrellas and sole traders, and when I decided to go limited company used an accountant they reccomended.
On the down side it took me 5 months to get some work (though I was surprised to learn I was elagable for Job Seekers Allowance in that time), but then again the contracts I did get meant I earned more in the year than in my previous job. The problem with that was that when I didn't have work on I didn't want to spend money as I didn't know when I'd next have work, and when I had work I did't want to take leave as I was paid by the day
After a couple of years I got a job offer I couldn't refuse from a company I'd done some work through, and since then they've farmed me back out to customers I'd worked for when solo, so I've still not completly made up my mind if I'd have been better off staying contracting or going back to full time work as I did.
The other slight downside of contracting is that you're trading on skills you already have, and nobody is going to hire you to do work you've never done before, whereas working for a larger company that happens all the time. This means you do need the disciplin to learn new skills on your own time, but it sounds like you're already starting to do that so shouldn't be a problem.
I found http://www.pcg.org.uk/ really usefull when I started up, found a good guide on there about the advanteges of limited companies, umbrellas and sole traders, and when I decided to go limited company used an accountant they reccomended.
On the down side it took me 5 months to get some work (though I was surprised to learn I was elagable for Job Seekers Allowance in that time), but then again the contracts I did get meant I earned more in the year than in my previous job. The problem with that was that when I didn't have work on I didn't want to spend money as I didn't know when I'd next have work, and when I had work I did't want to take leave as I was paid by the day

After a couple of years I got a job offer I couldn't refuse from a company I'd done some work through, and since then they've farmed me back out to customers I'd worked for when solo, so I've still not completly made up my mind if I'd have been better off staying contracting or going back to full time work as I did.
The other slight downside of contracting is that you're trading on skills you already have, and nobody is going to hire you to do work you've never done before, whereas working for a larger company that happens all the time. This means you do need the disciplin to learn new skills on your own time, but it sounds like you're already starting to do that so shouldn't be a problem.
Sexual Chocolate said:
Contractors never stay late. our daly rate is just contracted hours during the day. Anymore then its OT and PO time 
Go for it. I have zero regrets about going contract. It can ber a bit of pain what with VAT, reciepts and HMRC stuff but get a decent accountant and let them do it all. If you can register your company at their (accountants) place so most things get actioned as its not always possible to work near to where you live. Which leads me onto ... would you be willing to work away from home 5 days a week?
I would actually, yeah. In fact, I've always had a bit of a thing about wanting to live in London, at least for a short period, so perhaps a contract down there would kill two birds with one stone for me one day.
Go for it. I have zero regrets about going contract. It can ber a bit of pain what with VAT, reciepts and HMRC stuff but get a decent accountant and let them do it all. If you can register your company at their (accountants) place so most things get actioned as its not always possible to work near to where you live. Which leads me onto ... would you be willing to work away from home 5 days a week?
Edited by Sexual Chocolate on Thursday 14th March 15:07
Edited by Sexual Chocolate on Thursday 14th March 15:09
I'd also enjoy working in Manchester, Leeds (where I live), Liverpool and so on.
TroubledSoul said:
I would actually, yeah. In fact, I've always had a bit of a thing about wanting to live in London, at least for a short period, so perhaps a contract down there would kill two birds with one stone for me one day.
I'd also enjoy working in Manchester, Leeds (where I live), Liverpool and so on.
In all honesty most of the contracts are either in London or Edinburgh with a few inbetween so you may well get your wish. You could always rent a room in a shared house somehwere then return to Gods own at weekends. This is what I do and its much better than living in digs. I'd also enjoy working in Manchester, Leeds (where I live), Liverpool and so on.
I would love to get a contract in Leeds/York (close to home) but i get the feeling that finding the holy grail would be easier. Then again I am rather specialised maybe a bit too specialised.
Go for it though, sounds like your ready to make that move.
Sexual Chocolate said:
Contractors never stay late. our daly rate is just contracted hours during the day. Anymore then its OT and PO time 
Daily rate and I'd expect some flexibility, especially on the higher daily rates. I'd be highly unlikely to keep on somebody on an expensive daily rate if they insisted on being paid for every 5 minutes over their contracted hours all the time. Big stuff, like coming in on a weekend or working very late, I'd expect to pay for though.
Hourly rate, particularly something like desktop or server support/implementation that is a much lower hourly rate than your average daily rate and I have no problem authorising OT when its needed.
tankplanker said:
Sexual Chocolate said:
Contractors never stay late. our daly rate is just contracted hours during the day. Anymore then its OT and PO time 
Daily rate and I'd expect some flexibility, especially on the higher daily rates. I'd be highly unlikely to keep on somebody on an expensive daily rate if they insisted on being paid for every 5 minutes over their contracted hours all the time. Big stuff, like coming in on a weekend or working very late, I'd expect to pay for though.
Hourly rate, particularly something like desktop or server support/implementation that is a much lower hourly rate than your average daily rate and I have no problem authorising OT when its needed.
Sexual Chocolate said:
Not all contracts have OT/on-call or even standby provisioned in them. In general you get an hour free after that I am charging. Any permie employ would do the same in fact most permies would have their OT sheets ready as soon as 5PM ticked past. Why should a contractor not do the same?
An hour or so is what I mean, nothing worse than people who turn up exactly at 9am and leave exactly at 5pm. It seems to especially wind up permies when a contractor earning double what the permie is earning starts doing it and causes bad feeling within the team. Personally I think being jealous of how much somebody else earns is a bit sad, if it bothers people that much they are quite welcome to go out contracting if its that easy to earn double. Permies demanding OT for less than an hour's OT would be on a hiding to nothing with me. There will come a time that they need that flexibility in return, car service, dentist, and they'll find that flexibility isn't there.
TroubledSoul said:
I would actually, yeah. In fact, I've always had a bit of a thing about wanting to live in London, at least for a short period, so perhaps a contract down there would kill two birds with one stone for me one day.
I'd also enjoy working in Manchester, Leeds (where I live), Liverpool and so on.
I have the same advice: go for it! The main drawback is that you will not be always able to find contracts near home, but it seems you are ok with it. Setting up a limited company is easy, find a decent accountant and d not register for VAT to keep things simple. You will have to save the money because you will not be sure that you will be able to find always a contract and earn every month. You will have to deal with different people, be flexible and really really skilled. Companies hires contractors even because they to not want the hassle to train them, so you should be a self-started and provide to your own training and be always updated. I am an IT contractor too, but I am a web developer, although I have a couple of M$ certification. If you are happy to work as Windows sys admin, as you said you should get the MSIE and the Exchange certification. Learn configuration management tools like Puppet or Chef (no 1 tools for Unix). Knowing Cisco and networking stuff will be goog too.I'd also enjoy working in Manchester, Leeds (where I live), Liverpool and so on.
Good luck.
Sexual Chocolate said:
In all honesty most of the contracts are either in London or Edinburgh with a few inbetween so you may well get your wish. You could always rent a room in a shared house somehwere then return to Gods own at weekends. This is what I do and its much better than living in digs.
I would love to get a contract in Leeds/York (close to home) but i get the feeling that finding the holy grail would be easier. Then again I am rather specialised maybe a bit too specialised.
Go for it though, sounds like your ready to make that move.
Yeah I'm quite excited by the prospect actually, but not of leaving the Mrs at home on her own all week I would love to get a contract in Leeds/York (close to home) but i get the feeling that finding the holy grail would be easier. Then again I am rather specialised maybe a bit too specialised.
Go for it though, sounds like your ready to make that move.

I'd just need to find a room that didn't eat too much of the salary to make it worthwhile if I did work away from home.
Really appreciate all the advice from everybody so far. I spruced up my CV a bit last night and applied for a couple of tech support type jobs to get me going. Going to speak to an accountant today about setting up a limited company etc. but happy to use an Umbrella just for the first contract while I get my head around it.
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