Anyone do Contract Consultancy ?
Anyone do Contract Consultancy ?
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Discussion

jacko lah

Original Poster:

3,297 posts

279 months

Monday 11th June 2007
quotequote all


http://www.pistonheads.com/gassing/topic.asp?h=0&a...

Seen a job on Total Jobs which is a contract lean / 6 sigma / business improvement role.

Now I've worked with contractors in Aerospace and most of themn were more permanent than the perms. But in a consultancy / improvement role it's not the same. If you believe the daily posted rate, I could work 8 days every month and still earn more than I do now.

The thing that stops me applying is my self-belief and the potential risk of not having regular work.


Don

28,378 posts

314 months

Monday 11th June 2007
quotequote all
OK.

Going contracting can be a fun way to develop your career. You get to spend time doing different things and if you don't like a project you can always leave to work on another one.

You don't have regular work so you have to build up a warchest of savings. If you simply have to work next week in order to make the mortgage then you have planned your level of income totally incorrectly vs your revenue when employed.

Look at an occupancy of around 60%. You can be lucky and hit a long termer that leaves you in clover - but be aware you then run into IR35 issues.

You will also need to accept that as a small businessman - and worse, a contractor, you are held as being the lowest of the low by Gordon Brown and his Inland Revenue minions. They are TRAINED to assume that you are lying about how much you earn and have endless resources with which to pursue you if they feel even slightly suspicious.

You will need a good accountant. This will cost you a fortune. You'll have to make sure the rates you are getting cover

  • the cost of accountancy
  • all insurances
  • your "holiday" - else you will never take any again
  • pension contributions and savings
  • cost of defence against the Revenue when they try to screw you over (insurance against IR35)
HTH

Bitter. Moi?

trooperiziz

9,457 posts

282 months

Monday 11th June 2007
quotequote all
jacko lah said:
http://www.pistonheads.com/gassing/topic.asp?h=0&a...

Seen a job on Total Jobs which is a contract lean / 6 sigma / business improvement role.

Now I've worked with contractors in Aerospace and most of themn were more permanent than the perms. But in a consultancy / improvement role it's not the same. If you believe the daily posted rate, I could work 8 days every month and still earn more than I do now.

The thing that stops me applying is my self-belief and the potential risk of not having regular work.
I do a similar role, but in a permanent position. I did look at going contracting recently and did a lot of sums.

Make sure the daily posted rate is actually what you will be getting.
Add in pension contributions, private healthcare, life insurance etc...
Assume roughly a 40 week year.

If after all that it works out to be worth it then go for it smile In my case the average contracting rates weren't enough to tempt me away from my permanent role. There were a few high paying contracts out there, but I didn't bank on them always being available whenever I needed them.