Talk to me about contracting

[TheAngryDog]

I may have the opportunity to go from being employed with zero actual benefits, to being contracted instead.

I know very little about contracting. Could someone be kind enough to give me some info / advice please?

Would I be able to claim tax relief against travel to and from work etc?

Thanks.

[Nick Grant]

Here's a place to start...

http://www.sjdaccountancy.com/about/ourservices/be...

Expenses....

http://www.sjdaccountancy.com/about/ourservices/sj...

[Kapenta]

Some very good reading for you...

http://www.contractoruk.com/

You can claim travel from your business premises (home usually) to a temporary place of work (your clients) at 45.5p per mile for first 10000 miles...or the actual cost of travel if using public transport. There are different rates for bicycles / if you exceed 10000 miles in the tax year.

[Mashedpotatoes]

Travel and much much more.

[TheAngryDog]

Thanks guys I'll take a look at those links.

I dont have a pension etc through my work.

I realise any time off I have is unpaid.

Would you recommend going onto contracting?

[worsy]

Kapenta said:

Some very good reading for you...

http://www.contractoruk.com/

You can claim travel from your business premises (home usually) to a temporary place of work (your clients) at 45.5p per mile for first 10000 miles...or the actual cost of travel if using public transport. There are different rates for bicycles / if you exceed 10000 miles in the tax year.

45p*

[New POD]

TheAngryDog said:

Thanks guys I'll take a look at those links.

I dont have a pension etc through my work.

I realise any time off I have is unpaid.

Would you recommend going onto contracting?

Oh god yes. Any particular skill you are selling?

I'm assuming Ltd Company and not umbrellor.
I'm assuming you'll google the following IR35, Starting a business, Business link, Flat Rate Vat Scheme.

Remember it's a business, not a JOB. In the same way a freelance plumber is running a business.

I've been ltd company contracting for 4.5 years, and haven't really got a bad thing to say about it.

My company pays into a pension for me, I claim appropriate and justifiable business expenses, like: B&B, 45p (or 25p once 10K reached) a mile, PPE, Computing, Printing, a phone for business use, meals when away from home, flights (I've worked in Berlin for a couple of weeks), taxi's etc.

[va1o]

Last couple of places I've been (an SME and FTSE 100) contractors don't get treated well, very much an 'Us and them' divide.

[worsy]

In the place I'm at most people are not even aware that I am a contractor. I can't recall a gig I've had where I was treated badly.

[Mr Pointy]

TheAngryDog said:

Would you recommend going onto contracting?

It depends on your circumstances. If you have a wife, young kids & a mortgage the risks are greater than if you're single.

Do you have a saleable skill that others apart from your current employer wants?
Do you have enough money saved to be out of work for three to six months?
Can you accept you could be out of work at a week's notice?

If you can then go for it. I did & it's unlikely I'd go back to being employed.

[worsy]

Mr Pointy said:

TheAngryDog said:

Would you recommend going onto contracting?

It depends on your circumstances. If you have a wife, young kids & a mortgage the risks are greater than if you're single.

Do you have a saleable skill that others apart from your current employer wants?
Do you have enough money saved to be out of work for three to six months?
Can you accept you could be out of work at a week's notice?

If you can then go for it. I did & it's unlikely I'd go back to being employed.

These are good questions. Mentally you have to be able to handle the countdown to your contract expiring. Very often this is every 3-6 months. A 6 month contract is a long one! Even seasoned contractors get jumpy.

On the flip side though, after a year or so, once you've built your rainy day fund, you'll be in a better position than most permies given redundancy.

[IainT]

I'm considering going back to contracting after 5 years in permy-land.

Current company has just let me down on a long-promised raise. Difficult thing will be timing notice and contract starts - i.e. finding a client willing to wait. On the plus side I've now added more team and tech-lead years to my CV and am coming from a largeish consultancy and have added bio-tech so it's not too bad.

[toasty]

I left IT contacting after 5 years to go back permie.

I got no training as a contractor thought clients and the software I specialised in would not train non-clients so I was falling behind the pack. I also got fed up working away from home.

Now 6 years back in permiedom I'm not sure I'd want to go back contracting. It works well for some but not all and I'm happy where I am.

[New POD]

worsy said:

In the place I'm at most people are not even aware that I am a contractor. I can't recall a gig I've had where I was treated badly.

I've had to explain Churlishly that there is no way my name is going on the Holiday list, I'm not permanent, and whilst I will try to fit my down time in with the project, and I'll give you sufficient notice, of when I'm not available, I do not fill in holiday request forms, or go on your departmental list.

I think I have a mental block with this one TBH.

That and the actual hours I choose to be on site. If there is work that COULD be done offsite, I'll do it offsite, with less interuptions.

I want the people I work with to know, that I'm here to do a job, I don't want their job, and I'm quite happy to leave when it's done.

[MagicalTrevor]

Contracting is the best thing I did. I love it, I rarely got training anyway and some of the benefits weren't really worth it. I can now choose my benefits (I have to pay for them but than indirectly you pay for them anyway) and I have full flexibility of what I do and how I work.
I was finding that I got bored after around 2 years anyway so finding work isn't all that different if I can get decent enough long contracts.

[worsy]

New POD said:

worsy said:

In the place I'm at most people are not even aware that I am a contractor. I can't recall a gig I've had where I was treated badly.

I've had to explain Churlishly that there is no way my name is going on the Holiday list, I'm not permanent, and whilst I will try to fit my down time in with the project, and I'll give you sufficient notice, of when I'm not available, I do not fill in holiday request forms, or go on your departmental list.

I think I have a mental block with this one TBH.

That and the actual hours I choose to be on site. If there is work that COULD be done offsite, I'll do it offsite, with less interuptions.

I want the people I work with to know, that I'm here to do a job, I don't want their job, and I'm quite happy to leave when it's done.

I put my name on the holiday list but I don't have to seek approval. It's just a courteous thing to let people know I'll be off. Don't see a problem with it.

[New POD]

Down side of contracting.

7am I logged on to email, to find a question from another contractor (different skills and role but I've worked with him quite a bit) in an office across the road sent yesterday after I'd left:

Have you heard the news?

By 10 am it was clear that all contractors on 4 week notice had been given notice, all contractors in his office had been told that they would be let go at Christmas, by 11 am all the OTHER contractors in my office had been told, and my current hiring manager was playing radio silence.

So of the people I actually know 9 in our office, 15 in matey's floor, I assume at least 200 across the site, with a click of the mouse.

I'm on a weeks notice so assuming boss man is waiting until a week before xmas.


Went to see old hiring manager, who now comes under the current hiring manager, and he said "Our bit hasn't been told to get rid of contractors, but if you had irons in the fire, I'd keep them hot. in times of uncertainty, it's best to prepare, if you find something talk to me, before you make a decision, I really don't want to loose you now."

So anyway, about 40 mins later I got confirmation that I have an interview at MINI's oxford plant next Tuesday.

Can you deal with the uncertainty?

[TheAngryDog]

Thanks for the insight guys.

Things have changed and I have asked for a pay rise. I don't think contracting would be an option right now, as even though my company would be unlikely not to keep it renewed as I work for a service desk who out source me already, they have told me that they cannot afford to let me go. Tbh though, I don't think I will get a pay rise, apparently the budget isnt looking great. I'm underpaid for london already

[MrChips]

Out of interest, what kind of skill set / roles do those contractors on here have?
From my own experience I've only really seen IT contractors (albeit a very wide variety of roles) and Project Consultants who have clear project management skills.

For those who have successfully jumped from the safety of a permanent position, what kind of work do you now do day to day?

[blank]

New POD said:

Down side of contracting.

7am I logged on to email, to find a question from another contractor (different skills and role but I've worked with him quite a bit) in an office across the road sent yesterday after I'd left:

Have you heard the news?

By 10 am it was clear that all contractors on 4 week notice had been given notice, all contractors in his office had been told that they would be let go at Christmas, by 11 am all the OTHER contractors in my office had been told, and my current hiring manager was playing radio silence.

So of the people I actually know 9 in our office, 15 in matey's floor, I assume at least 200 across the site, with a click of the mouse.

I'm on a weeks notice so assuming boss man is waiting until a week before xmas.


Went to see old hiring manager, who now comes under the current hiring manager, and he said "Our bit hasn't been told to get rid of contractors, but if you had irons in the fire, I'd keep them hot. in times of uncertainty, it's best to prepare, if you find something talk to me, before you make a decision, I really don't want to loose you now."

So anyway, about 40 mins later I got confirmation that I have an interview at MINI's oxford plant next Tuesday.

Can you deal with the uncertainty?

This is what scares me about making the jump. What's the role at Oxford out of interest? I used to work there...