IT Contracting - how do I begin?
Discussion
After having my back stabbed the last 6 months and dealing with total f**kwits day in day out, including hugely incompetant management finally got f**ked off this weekend when I hear that I am being blamed for not clearing up the workshop while I have been away on a traning course all week.... 
I am highly compentant in all areas of IT, run my own sole tradership outside of work hours and have high experience in all areas and I am currently finished traning in Active directory and all manner of server and software deployment.
What do I have to do to start out in contracting? Advice needed to preserve my sanity
Chris
I am highly compentant in all areas of IT, run my own sole tradership outside of work hours and have high experience in all areas and I am currently finished traning in Active directory and all manner of server and software deployment.
What do I have to do to start out in contracting? Advice needed to preserve my sanity
Chris
Set yourself up as a limited company, make sure you engage only in contracts which take you out of IR35. Purchase professional indemnity insurance, etc to verify your status as a company.
Register for VAT, keep ALL receipts.
If you're new to the game and can't get work via recommendations start hawking your CV around agencies most likely to match your skill set.
Good luck - the market is much better these days than it was a couple of years back
Register for VAT, keep ALL receipts.
If you're new to the game and can't get work via recommendations start hawking your CV around agencies most likely to match your skill set.
Good luck - the market is much better these days than it was a couple of years back
IR35 is the governments way of telling you that you are not self-employed and all your income is conveniently taxable. You end up paying National Insurance (twice, employer, employee) plus full tax on any income.
Make sure contracts are outside IR35. There are some reasonable ways of doing this and much advice/guidance on the web.
Have a look at www.sjdaccountancy.com (They aren't my accountants but have a good IR35 advice section). Also look at www.contractoruk.com
Of course, once you are out of work you magically become self-employed in the governments eyes and can't get benefits should you wish, despite paying god knows how much in to the NI kitty.
Learn the rules and beat them at their own game.
Dave
Make sure contracts are outside IR35. There are some reasonable ways of doing this and much advice/guidance on the web.
Have a look at www.sjdaccountancy.com (They aren't my accountants but have a good IR35 advice section). Also look at www.contractoruk.com
Of course, once you are out of work you magically become self-employed in the governments eyes and can't get benefits should you wish, despite paying god knows how much in to the NI kitty.
Learn the rules and beat them at their own game.
Dave
It's not my subject gh0st so I'm not really able to help you myself, but my son Mike was in IT contracting between about 1988 and late 2001. The market seemed to go bad at the end of that period, but Mike did very well out of his work in that field and is now more or less retired - at the age of 40 - and now turns his attention to other things when he feels like it so he's OK.
If the market has indeed made a recovery that's fine, so I hope you manage to do what you want.
By all means contact me if you want to chat about things further, and I'll get Mike lined up to try and help if his information is not too out of date.
Best wishes all,
Dave.
If the market has indeed made a recovery that's fine, so I hope you manage to do what you want.
By all means contact me if you want to chat about things further, and I'll get Mike lined up to try and help if his information is not too out of date.
Best wishes all,
Dave.
Good luck in your hunt for your first contract - if you are capable, professional, flexible and willing to work hard then you should have no problem succeeding.
Don't take this the wrong way but statements such as:
Would mean you wouldn't get a job from me...get real - nobody can make those claims. Just work out what it is you are a specialist in, and concentrate on being very, very good at that.
I am trying to be constructive and help but:
Tells me that you know a bit about Windows / AD and one or two deployment tools, but are far from being an expert, so don't claim to be (I'm not suggesting you will).
Oh, and contracting is most definitely not a magic fix for this:
And being a contractor means you are an even easier target.
Don't take this the wrong way but statements such as:
gh0st said:
I am highly compentant in all areas of IT
gh0st said:
have high experience in all areas
Would mean you wouldn't get a job from me...get real - nobody can make those claims. Just work out what it is you are a specialist in, and concentrate on being very, very good at that.
I am trying to be constructive and help but:
gh0st said:
I am currently finished traning in Active directory and all manner of server and software deployment.
Tells me that you know a bit about Windows / AD and one or two deployment tools, but are far from being an expert, so don't claim to be (I'm not suggesting you will).
Oh, and contracting is most definitely not a magic fix for this:
gh0st said:
After having my back stabbed the last 6 months and dealing with total f**kwits day in day out, including hugely incompetant management
And being a contractor means you are an even easier target.
In answer to your question:
- Work out what you specialise in (if anything).
- Know what you are good at, and what you can't do.
- Know your realistic market worth - don't go asking for silly money.
- How much you will ask for, and why?
- Remember training and badges do not replace experience.
- How flexible are you? Shifts, working away from home etc?
- Understand why you are moving to contracting, and make sure you can articulate that to a potential client
Find a contract - via previous contacts, job agency etc.
The company/accountant/IR35/tax/etc etc etc is the easy bit.
Feel free to mail me offline if you want any help...
Paul
(yes, contractor in case you hadn't guessed!)
gh0st said:
What do I have to do to start out in contracting?
- Work out what you specialise in (if anything).
- Know what you are good at, and what you can't do.
- Know your realistic market worth - don't go asking for silly money.
- How much you will ask for, and why?
- Remember training and badges do not replace experience.
- How flexible are you? Shifts, working away from home etc?
- Understand why you are moving to contracting, and make sure you can articulate that to a potential client
Find a contract - via previous contacts, job agency etc.
The company/accountant/IR35/tax/etc etc etc is the easy bit.
Feel free to mail me offline if you want any help...
Paul
(yes, contractor in case you hadn't guessed!)
Add the following to your TODO list:
1. Look back through this topic (ie. the Business section of Gassing Station) because we have discussed this A LOT!
2. Visit www.contractoruk.com, www.pcg.org.uk, www.shout99.com, www.namesfacesplaces.com
3. Make sure you understand what IR35 is.
4. Remember that the grass isn't necessarily greener on the other side of the fence. Just different.
5. Feel free to ask specific questions when you've done all the above.
Also, the market is only just starting to pick up again. You will be up against a lot of experienced contractors (like me).
You will not be able to waltz into a contract unless you are VERY lucky, and the fact that you are a first timer will count against you.
Oh, and agents will salivate over the fact that you're a first timer and try to shaft you. Well, even harder than they normally do for us veterans.
Remember - they are like estate agents, not theatrical agents. They do not represent you, they do not have your best interests at heart, and they are not on your side.
Anyway, it is all in the above websites. There's no point me regurgitating what you can find out there.
Good luck. Just don't come anywhere near any contracts I want.
1. Look back through this topic (ie. the Business section of Gassing Station) because we have discussed this A LOT!
2. Visit www.contractoruk.com, www.pcg.org.uk, www.shout99.com, www.namesfacesplaces.com
3. Make sure you understand what IR35 is.
4. Remember that the grass isn't necessarily greener on the other side of the fence. Just different.
5. Feel free to ask specific questions when you've done all the above.
Also, the market is only just starting to pick up again. You will be up against a lot of experienced contractors (like me).
You will not be able to waltz into a contract unless you are VERY lucky, and the fact that you are a first timer will count against you.
Oh, and agents will salivate over the fact that you're a first timer and try to shaft you. Well, even harder than they normally do for us veterans.
Remember - they are like estate agents, not theatrical agents. They do not represent you, they do not have your best interests at heart, and they are not on your side.
Anyway, it is all in the above websites. There's no point me regurgitating what you can find out there.
Good luck. Just don't come anywhere near any contracts I want.
Here's some previous threads to help you further:
www.pistonheads.com/gassing/topic.asp?t=127837
www.pistonheads.com/gassing/topic.asp?t=124625
www.pistonheads.com/gassing/topic.asp?t=124116
www.pistonheads.com/gassing/topic.asp?t=121980
www.pistonheads.com/gassing/topic.asp?t=116148
www.pistonheads.com/gassing/topic.asp?t=111101
www.pistonheads.com/gassing/topic.asp?t=106335
www.pistonheads.com/gassing/topic.asp?t=115835
www.pistonheads.com/gassing/topic.asp?t=36109
www.pistonheads.com/gassing/topic.asp?t=127837
www.pistonheads.com/gassing/topic.asp?t=124625
www.pistonheads.com/gassing/topic.asp?t=124116
www.pistonheads.com/gassing/topic.asp?t=121980
www.pistonheads.com/gassing/topic.asp?t=116148
www.pistonheads.com/gassing/topic.asp?t=111101
www.pistonheads.com/gassing/topic.asp?t=106335
www.pistonheads.com/gassing/topic.asp?t=115835
www.pistonheads.com/gassing/topic.asp?t=36109
UpTheIron said:
Good luck in your hunt for your first contract - if you are capable, professional, flexible and willing to work hard then you should have no problem succeeding.
Don't take this the wrong way but statements such as:
gh0st said:
I am highly compentant in all areas of IT
gh0st said:
have high experience in all areas
Would mean you wouldn't get a job from me...get real - nobody can make those claims. Just work out what it is you are a specialist in, and concentrate on being very, very good at that.
I am trying to be constructive and help but:
gh0st said:
I am currently finished traning in Active directory and all manner of server and software deployment.
Tells me that you know a bit about Windows / AD and one or two deployment tools, but are far from being an expert, so don't claim to be (I'm not suggesting you will).
Oh, and contracting is most definitely not a magic fix for this:
gh0st said:
After having my back stabbed the last 6 months and dealing with total f**kwits day in day out, including hugely incompetant management
And being a contractor means you are an even easier target.
Good points, taken onboard.
Thanks so far everyone, I have been speaking to a guy that used to work for my company (left for the same reasons i am pretty much) and he is very very happy.
He totally agrees with most of the comments on this thread (agents will try to shaft, hard work and need to build reputation etc...) but I am willing to work at this.
Just got to sit down and work out my exact skillset (as uptheiron suggested) so I can present myself properly. This post was typed rather quickly so I just put stuff in the thread to present my position quickly. Reads pretty bad when looking back at it!
Keep the comments coming, all very useful.
Cheers
Gh0st
He totally agrees with most of the comments on this thread (agents will try to shaft, hard work and need to build reputation etc...) but I am willing to work at this.
Just got to sit down and work out my exact skillset (as uptheiron suggested) so I can present myself properly. This post was typed rather quickly so I just put stuff in the thread to present my position quickly. Reads pretty bad when looking back at it!
Keep the comments coming, all very useful.
Cheers
Gh0st
Ghost, All the comments on here so far have been pretty good. I was made redundant in March and have ended up contracting. It was not a decision such as yours. I was out of work and looking for anything, but with a view that contracting would be nice to get out of the office politics that had driven me to distraction (and was offerig better money than most permenant jobs around at the time). The first few interviews busted out but it didn't take many to find work. I ended up being out of work for 3 weeks, and only that long because I had to setup a company over the Easter Bank holiday weekend.
It is no where near as scary as it can first seem.
You can setup a company numerous ways. I chose to go via an accountant that was recomended to me (for the advice they gave). However, this is expensive compared to setting one up over the internet. The easiest way is to buy an off the shelf limited company. One that is already registered with companies house as a general purpose company (this lets you trade in any area that the directors - you - believes will make money).
Look at the relevant sites such as the Professional Contractor Group www.pcg.org.uk and the others listed here, which have loads of good advice.
Go in with your eyes open. Make sure you research the prospects in the exact areas you want to work in. Update your CV (maybe get professional help with it) and practice your interview technique. Look at all the job sites and research companies that you think you would like to work for.
Once you have your CV sorted post it onto the best jobsites you find for your area of work. With a good description of your skills. Basically like any job hunt. Plus start contacting agencies and companies you thnk have the right sort of work.
Be aware of your status as a contractor. You are an outsider in any company you work in and some permanent staff don't like the idea of contractors being used. Don't burn bridges, you may well be looking for work from that person again later (possibly in a different company). IT is a pretty small world. Make sure you start building a network of people/companies that you can use to find work in the future as most jobs are arranged via people networking, not from adverts.
Be aware that you can be out of work at times and that rates fluctuate, build this into your lifestyle plans (ie always keep some money in reserve for worst case). Also, don't be fixed on a specific rate that you must have, be flexible if the work would be good experience or a good company name to add to your CV.
Get some good accountancy advice as to what you can/can't do. Be very aware of IR35 and that even if you have a watertight case against it you might be investigated (which can cost). Don't rush into getting VAT registered unless you must (there is an earnings limit where you have to), again get advice, it is not always beneficial and isn't a requirement if you are under the earnings limit.
Good luck whatever you decide.
It is no where near as scary as it can first seem.
You can setup a company numerous ways. I chose to go via an accountant that was recomended to me (for the advice they gave). However, this is expensive compared to setting one up over the internet. The easiest way is to buy an off the shelf limited company. One that is already registered with companies house as a general purpose company (this lets you trade in any area that the directors - you - believes will make money).
Look at the relevant sites such as the Professional Contractor Group www.pcg.org.uk and the others listed here, which have loads of good advice.
Go in with your eyes open. Make sure you research the prospects in the exact areas you want to work in. Update your CV (maybe get professional help with it) and practice your interview technique. Look at all the job sites and research companies that you think you would like to work for.
Once you have your CV sorted post it onto the best jobsites you find for your area of work. With a good description of your skills. Basically like any job hunt. Plus start contacting agencies and companies you thnk have the right sort of work.
Be aware of your status as a contractor. You are an outsider in any company you work in and some permanent staff don't like the idea of contractors being used. Don't burn bridges, you may well be looking for work from that person again later (possibly in a different company). IT is a pretty small world. Make sure you start building a network of people/companies that you can use to find work in the future as most jobs are arranged via people networking, not from adverts.
Be aware that you can be out of work at times and that rates fluctuate, build this into your lifestyle plans (ie always keep some money in reserve for worst case). Also, don't be fixed on a specific rate that you must have, be flexible if the work would be good experience or a good company name to add to your CV.
Get some good accountancy advice as to what you can/can't do. Be very aware of IR35 and that even if you have a watertight case against it you might be investigated (which can cost). Don't rush into getting VAT registered unless you must (there is an earnings limit where you have to), again get advice, it is not always beneficial and isn't a requirement if you are under the earnings limit.
Good luck whatever you decide.
icamm said:
icamm said:
Update your CV (maybe get professional help with it
A fine idea. Are there companies that do this?
Yes, but I can't give you any names I'm afraid. I got help with mine from the company that my last employers used as part of our redundancy package.
Oh, post on PH requesting advise on how to write a CV and it's only a matter of time before a HR manager for a large corporate turns up and sorts your out for you
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