Contracting in IT - Advice needed
19 November 2002, 12:23 PM
#1
Guest
Posts: n/a
I have only worked in permanent positions b4 now but agencies are coming back to me with contract work. I have no idea what is involved with this apart from u get no benefits like holiday/sick pay/pension etc.
What sort of rates should you be looking at for a desktop support role with 4-6 years experience in the city with a very large organisation for a 12 month contract?
What is involved with tax/setting up own company etc? Is all this needed? Is it better if the agency does it or are they just making **** loads more money out of you this way?
I have said 25 quid an hour as they had people anywhere between 18 and 40 quid an hour applying.
Any help or advice would be much appreciated
I would prefer to stay permy but I might not have any choice with going contracting
What sort of rates should you be looking at for a desktop support role with 4-6 years experience in the city with a very large organisation for a 12 month contract?
What is involved with tax/setting up own company etc? Is all this needed? Is it better if the agency does it or are they just making **** loads more money out of you this way?
I have said 25 quid an hour as they had people anywhere between 18 and 40 quid an hour applying.
Any help or advice would be much appreciated
I would prefer to stay permy but I might not have any choice with going contracting
19 November 2002, 12:29 PM
#2
Guest
Posts: n/a
Which ever mod put this in here thanks very much, NOT! [img]images/smilies/mad.gif[/img]
This is not a technical problem on computers or talk of games, its advice required about jobs and it would have got much more exposure in non scooby related if left there!
Feking pisses me off at times, wish u lot would just leave posts alone that dont need to be moved!!! [img]images/smilies/mad.gif[/img]
Put it back there!!!!!
This is not a technical problem on computers or talk of games, its advice required about jobs and it would have got much more exposure in non scooby related if left there!
Feking pisses me off at times, wish u lot would just leave posts alone that dont need to be moved!!! [img]images/smilies/mad.gif[/img]
Put it back there!!!!!
19 November 2002, 12:36 PM
#3
Scooby Regular
Join Date: Sep 2002
Location: Essexville
Posts: 4,391
Likes: 0
Received 0 Likes
on
0 Posts
Hey Bravo,
You could get a job as a moderator, although you will be severely over qualified!!!!
BB
Give Rog a call, he'll sort you out, you could even go on his 'books'
good luck
BB
You could get a job as a moderator, although you will be severely over qualified!!!!
BB
Give Rog a call, he'll sort you out, you could even go on his 'books'
good luck
BB
19 November 2002, 12:39 PM
#4
Scooby Regular
Join Date: Oct 1998
Location: London
Posts: 4,891
Likes: 0
Received 0 Likes
on
0 Posts
How can IT contracting not be computer-related?!?! 
Besides, you want to target the audience of IT types, presumably, in which case this is the best forum. Duh.
Besides, you want to target the audience of IT types, presumably, in which case this is the best forum. Duh.
19 November 2002, 12:42 PM
#6
Guest
Posts: n/a
Yeah I know that Marko but its also job related, not everyone in the know is gonna be looking in the computer related section, I only use that if I want a technical answer on something!
Oh well its stuck here now so tough luck to me
I just wanted the biggest audience and IMHO thats in N/S.
Oh well its stuck here now so tough luck to me
I just wanted the biggest audience and IMHO thats in N/S.
Trending Topics
19 November 2002, 01:33 PM
#8
Scooby Regular
Join Date: Sep 1999
Location: Bedfordshire
Posts: 4,037
Likes: 0
Received 0 Likes
on
0 Posts
b20
Well you could do a search on the web, setting up a limited company is cheap and easy these days. You will need to get yourself a chartered accountant (not certified as they cannot do limited co. audits), I use www.nymanlinden.co.uk in the city, not the cheapest but they were setup years ago and specialise in IT contract accounts and you always have access to a senior partner, I use them now even though I no longer contract, others can probably suggest others. Dont let the agency do it, yes they make enough (too much!) out of you.
I could name and shame a few agencies but wont do it on here, mail me if you want to know whos bad! In the current climate you would do well to get at least a 6month contract so it gives you a decent enough cushion and time to look for something else, 3 months does go frighteningly quick in contract!
Good Luck
Gary
What is involved with tax/setting up own company etc? Is all this needed? Is it better if the agency does it or are they just making **** loads more money out of you this way?
I could name and shame a few agencies but wont do it on here, mail me if you want to know whos bad! In the current climate you would do well to get at least a 6month contract so it gives you a decent enough cushion and time to look for something else, 3 months does go frighteningly quick in contract!
Good Luck
Gary
19 November 2002, 02:17 PM
#9
Scooby Regular
Join Date: Aug 2002
Posts: 151
Likes: 0
Received 0 Likes
on
0 Posts
Speak to an Accountant before doing anything. If they don't know about IR35 rule dont use them. They should be able to arrange company formation, vat registration (> £50K t/over) etc and also give a good idea of your net pay. As a contractor working through a limited company you will have to pay 12%ish NI on your gross 'salary' (read up about IR35), find your own pension contributions, 'pay' for holiday time, Accountant fees (1k)...the list goes on + job security. Think long and hard before taking the plunge.
19 November 2002, 03:43 PM
#10
Scooby Regular
Join Date: Jul 2001
Posts: 1,112
Likes: 0
Received 0 Likes
on
0 Posts
Do it, just don't p1ss it all up against a wall otherwise the vat man will shaft you and your first born.
£25 p/h sounds a bit poor for London though.
Its about 100 quid for a ltd.co. and a grand for a decent accountant. Its dead easy once you get into the swing of it.
£25 p/h sounds a bit poor for London though.
Its about 100 quid for a ltd.co. and a grand for a decent accountant. Its dead easy once you get into the swing of it.
19 November 2002, 05:05 PM
#11
Scooby Regular
Join Date: Dec 2001
Location: Sutton, Surrey
Posts: 536
Likes: 0
Received 0 Likes
on
0 Posts
Smithkline were looking for good third line support and infrastructure through Lorien but were only offering 18pph.
Also had an agency offer me a "stunning development position requiring loads of AD experience" but would only go to 25pph. Pathetic.
Also had an agency offer me a "stunning development position requiring loads of AD experience" but would only go to 25pph. Pathetic.
19 November 2002, 05:05 PM
#12
Scooby Regular
Join Date: May 2001
Posts: 672
Likes: 0
Received 0 Likes
on
0 Posts
Make sure you do the following *before* you become a contractor - believe me, it's a lot easier
1) get a mortgage
2) get a loan for *anything* more than 500 quid!
3) kiss goodbye to sick days. I've not had one for 3 years, and I've had a broken arm, food poisoning and really bad hangovers!
4) save up some money. You *will* need it when you are out of work for 6 months (or `between contracts` )
5) understand that although agency's are a nessesary evil, curse their names and poison the very air they breathe!
6) forget about worrying about office politics. You will be moving jobs, so you don't really give a **** if your boss is a **** / clueless ****wit / knobend
7) Never worry about salary payments. Expect to get paid about 1.5 / 2 times your previous salary. And don't forget, these are really lean times for contractors..
8) Buy a new scoob. You can now afford to run it
other than that, may I suggest:
www.sjdaccountancy.com - Peter Fallon is a nice bloke. 75 quid am month..
www.contractoruk.co.uk - good sounding board and lots of usefull links.
www.pgc.org.uk - Join up - they helped remove FTV's from the skills shortage list, and have been fighting IR35 since day1.
www.porsche.co.uk - for the new car
www.rolex.com - for the new watch
www.armani.com - for the new clothes
www.iamarichsmug*******.com - for all your mates
1) get a mortgage
2) get a loan for *anything* more than 500 quid!
3) kiss goodbye to sick days. I've not had one for 3 years, and I've had a broken arm, food poisoning and really bad hangovers!
4) save up some money. You *will* need it when you are out of work for 6 months (or `between contracts`
)5) understand that although agency's are a nessesary evil, curse their names and poison the very air they breathe!
6) forget about worrying about office politics. You will be moving jobs, so you don't really give a **** if your boss is a **** / clueless ****wit / knobend
7) Never worry about salary payments. Expect to get paid about 1.5 / 2 times your previous salary. And don't forget, these are really lean times for contractors..
8) Buy a new scoob. You can now afford to run it
other than that, may I suggest:
www.sjdaccountancy.com - Peter Fallon is a nice bloke. 75 quid am month..
www.contractoruk.co.uk - good sounding board and lots of usefull links.
www.pgc.org.uk - Join up - they helped remove FTV's from the skills shortage list, and have been fighting IR35 since day1.
www.porsche.co.uk - for the new car
www.rolex.com - for the new watch
www.armani.com - for the new clothes
www.iamarichsmug*******.com - for all your mates
19 November 2002, 05:39 PM
#13
Guest
Posts: n/a
Nice one folks for the replies
Just about confirms my worst fears tho and should avoid contracting like the plague!
25 quid an hour based on a 7 hour day wont put me on as good a deal as my last permy job with all the perks and I doubt desktop will pay as much as 25 p/h and thats without the payment of accountants etc!
Looks like some major adjustments in my outgoings are going to have to be made as permy is paying w@nk as well
Just about confirms my worst fears tho and should avoid contracting like the plague!
25 quid an hour based on a 7 hour day wont put me on as good a deal as my last permy job with all the perks and I doubt desktop will pay as much as 25 p/h
and thats without the payment of accountants etc!Looks like some major adjustments in my outgoings are going to have to be made as permy is paying w@nk as well
19 November 2002, 05:48 PM
#14
Scooby Regular
Join Date: Oct 1998
Location: London
Posts: 4,891
Likes: 0
Received 0 Likes
on
0 Posts
1) get a mortgage Very true.... although lenders are a bit more contractor-aware these days.
3) kiss goodbye to sick days. I've not had one for 3 years True again. Strangely, an hourly/daily rate makes for more motivation to get out of bed than an annual salary. I've been working for 10 years, contracting for 8, and have only ever had 3 sick days - and two of them were for a broken collabone!
4) save up some money. You *will* need it Everyone told me to do that, but I never managed it. Spend, spend, spend, was my motto. Might live to regret that next year though, having had it confirmed that my contract will be terminated at the end of Dec.
5) understand that although agency's are a nessesary evil, curse their names and poison the very air they breathe! Don't forget to spit on them too.
6) forget about worrying about office politics. Probably the biggest non-financial advantage of being a contractor/consultant. You give your analysis/info/opinion, and it's up to the client to act on it. If they make the wrong decision, given all the relevant information, that's their stupid fault.
7) Never worry about salary payments. Very true. But also expect to get paid late, too - and make arrangements in your contract to add late payment charges when it happens.
Expect to get paid about 1.5 / 2 times your previous salary. You can expand that range. Contractor rates can be as much as 5 times what an equivalent permie would earn.
8) Buy a new scoob. You can now afford to run it Unless you're married.
[Edited by MarkO - 11/19/2002 5:50:55 PM]
3) kiss goodbye to sick days. I've not had one for 3 years True again. Strangely, an hourly/daily rate makes for more motivation to get out of bed than an annual salary. I've been working for 10 years, contracting for 8, and have only ever had 3 sick days - and two of them were for a broken collabone!
4) save up some money. You *will* need it Everyone told me to do that, but I never managed it. Spend, spend, spend, was my motto. Might live to regret that next year though, having had it confirmed that my contract will be terminated at the end of Dec.
5) understand that although agency's are a nessesary evil, curse their names and poison the very air they breathe! Don't forget to spit on them too.
6) forget about worrying about office politics. Probably the biggest non-financial advantage of being a contractor/consultant. You give your analysis/info/opinion, and it's up to the client to act on it. If they make the wrong decision, given all the relevant information, that's their stupid fault.
7) Never worry about salary payments. Very true. But also expect to get paid late, too - and make arrangements in your contract to add late payment charges when it happens.
Expect to get paid about 1.5 / 2 times your previous salary. You can expand that range. Contractor rates can be as much as 5 times what an equivalent permie would earn.
8) Buy a new scoob. You can now afford to run it Unless you're married.
[Edited by MarkO - 11/19/2002 5:50:55 PM]
19 November 2002, 06:47 PM
#17
Scooby Regular
Join Date: Oct 1998
Location: London
Posts: 4,891
Likes: 0
Received 0 Likes
on
0 Posts
It's always best to go direct, then that won't be a problem.
Having said that, it's looking increasingly likely that my client (a major Japanese bank) will be nationalised in a couple of months - so there's no guarantee they'll pay me either.
Having said that, it's looking increasingly likely that my client (a major Japanese bank) will be nationalised in a couple of months - so there's no guarantee they'll pay me either.
20 November 2002, 08:56 AM
#18
Scooby Regular
Join Date: Sep 1999
Location: Bedfordshire
Posts: 4,037
Likes: 0
Received 0 Likes
on
0 Posts
It's always best to go direct, then that won't be a problem
Gary
20 November 2002, 12:13 PM
#19
Scooby Regular
Join Date: Feb 2002
Posts: 183
Likes: 0
Received 0 Likes
on
0 Posts
Felt I had to comment on this as I'm in IT Recruitment
Definately worth credit checking the agency you are going to be working through as in the current climate, there are a lot of them going to the wall. Equate it to buying a 2nd hand Scooby, if you were spending £10K, what is the cost of HPI. Not much. If an agency has you on monthly pay, then you are talking about a similar ammount of money.
Argument about working direct is not conclusive, we had a company go bust on us where we had a contractor, we had to pay the contractor (legal contract) and it cost us £12K + change. Remember that you sign a contract with the agency, it is not your problem if they don't get paid, and they can't wriggle out of it.
Anyone who is looking is welcome to send me a CV though I have to admit I have bugger all in the way of jobs on the permie side, though I do have lots of contract stuff, BA/PM/BPR if anyone is interested, though the rates are crap!
Chris
Definately worth credit checking the agency you are going to be working through as in the current climate, there are a lot of them going to the wall. Equate it to buying a 2nd hand Scooby, if you were spending £10K, what is the cost of HPI. Not much. If an agency has you on monthly pay, then you are talking about a similar ammount of money.
Argument about working direct is not conclusive, we had a company go bust on us where we had a contractor, we had to pay the contractor (legal contract) and it cost us £12K + change. Remember that you sign a contract with the agency, it is not your problem if they don't get paid, and they can't wriggle out of it.
Anyone who is looking is welcome to send me a CV though I have to admit I have bugger all in the way of jobs on the permie side, though I do have lots of contract stuff, BA/PM/BPR if anyone is interested, though the rates are crap!
Chris
Thread
Thread Starter
Forum
Replies
Last Post
robbie1988
Wanted
2
13 September 2015 09:25 AM
Scooby-Doo 2
Wheels And Tyres For Sale
1
09 September 2015 06:51 PM