Hi All,

Recently lost my job as a permy.

Happened to go back to my previous place of work and they wondered if Id be interested in going back to them on a kinda short term basis, I m guessing 3-6 months maybe.

Now, Ive never been a contractor, but think they may wish me to do this on a contract.

So can anyone tell me basically what I would need to do to set myself up to go contracting?

The other question is, this job is only a pretty easy number(not my normal thing, but I can do it easily hence theyd like me back) it probably pays £20k a year to a permy. What sort of rate should I be looking to get.


thanks for any input.

cheers


Andy

 

ADP,
To go contracting, you would prob have to set yourself up as
a ltd company. Search the web, there are comapnies that do these
"off the shelf", costs about £100.
You can find them from
www,contractoruk.co.uk
Then set up a business account with your bank.
If they take you on "direct" from your original employers,
you would probably need to be paid into a business account anyway.

There are advantages in going direct as they would not have to pay
a percentage that an agency would charge, on top of your rate.(say 15% minimum).
You would obviously have to pay taxes at a later date from your
incomings. say 65% is yours, keep the rest back.
If you asked for between £15 - £17, this would equate roughly to
someones £20k perm job.
You dont get paid sick pay, holidays, life insurance, pension etc.
Go for £15 minimum per hour.

Cheers
Glenn




[Edited by Foot_Tapper - 2/27/2003 3:49:04 PM]

 

ADP,
Although what Foot says is the traditional way of contracting, if you are only going to do it for 3 - 6 months, that method is a lot of time, hassle and expense. There are many umbrella companines that will run your accounts etc and pay you at the end of the month as if you were a permie. You won't be able to exercise the tax breaks, but IR35 has all but screwed these for people who contract in the way you suggest you will be. If you want a list of umbrella companies I have got a few I could suggest (no perk for me in doing so). Good luck with the job hunting.
Dan

 

Agree with umbrella companies to avoid IR35 and for 3-6 months I would go for £20/hour.

Good luck.

Phil

 

Sod the umbrella company, they often take 6% + and go in at a higher rate, £30 or more - they can only say no

You often find contract pay comes out of a different budget to permy money.

 

Cheers for all your inputs!

it seems the only way to get work at the moment is to know someone who can get you in, am really struggling even to get interviews as a support person, even though all the jobs I apply for on the face of it are well within my capabilities.

andy

 

ADP, make sure your CV is up to date & well structured.
Make the first part of your CV stand out, pertinent for the role your applying for.
It's the market at the moment, .......not too good.
Although recently i have seen a lot more advertised, but you will
probably have to be prepared to travel.
As the guys said, umbrella may be the way forward, initially
anyway.... you can always decide later to set up your own ltd comp.
But also as said before, the umbrella's will take a percentage as
a fee for their services.