Is now a bad time to go contracting ?
11 May 2003, 06:50 PM
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I'm currently a Java lead developer at a small software house in the North that's bucking the general downward trend in the industry and has got more work on over the next 6-12 months than we have people to do it.
However, I've been there for over 5 years and have done just about as much as I can without becoming management, which is NOT something I want to be doing. As well as general restlessness about the job, things have changed for me personally, and I'm no longer really tied to the company, or the area. In addition, I sold my apartment last year and am currently renting on one month's notice, so I'm not even tied down there either.
I'm aware that the industry is a "bit flat" at the moment, but reckon I'm ready to take a punt and just go for it.
However, last time I looked into contracting the market was bouyant and IR35 was still a way off. Are umbrella companies the way to go, or do you effectively tie yourself to an agency for convenience ?
What are your thoughts in general ? Am I mad to even consider it at the minute ? How do I find a good accountant ? What do you do for an address when you're effectively of "no fixed abode" ?
However, I've been there for over 5 years and have done just about as much as I can without becoming management, which is NOT something I want to be doing. As well as general restlessness about the job, things have changed for me personally, and I'm no longer really tied to the company, or the area. In addition, I sold my apartment last year and am currently renting on one month's notice, so I'm not even tied down there either.
I'm aware that the industry is a "bit flat" at the moment, but reckon I'm ready to take a punt and just go for it.
However, last time I looked into contracting the market was bouyant and IR35 was still a way off. Are umbrella companies the way to go, or do you effectively tie yourself to an agency for convenience ?
What are your thoughts in general ? Am I mad to even consider it at the minute ? How do I find a good accountant ? What do you do for an address when you're effectively of "no fixed abode" ?
12 May 2003, 08:47 AM
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Contracting's not particularly wise at the moment, 'cos there ain't a lot of work out there. Having said that, there ain't a lot of work out there if you're permie, either. 
Re: IR35, it's not too much of an issue, assuming you're going to go direct (i.e., no agent), get a decent contract with stuff like zero notice, substitution clauses, etc, and assuming you really are doing consultancy, and not just using your service company as a front for disguised employment.
Bet thing to do is to have a look at JobServe, Monster, Gis-A-Job, etc., and see if there's much out there that would suit you. If there is, it's not difficult to set up a Ltd company in a couple of days and become a contractor 'overnight'.
Basically, if you're already in a job, I'd stay there for a while until things start improving (which they are now, albeit very slowly - but things are starting to pick up). If you're not in a job anyway, you've got nothing to lose, so give it a go!
A good accountant? Talk to Chris Harris at Trafalgar - they've been superb for me. Tell him I recommended them to you.
Re: IR35, it's not too much of an issue, assuming you're going to go direct (i.e., no agent), get a decent contract with stuff like zero notice, substitution clauses, etc, and assuming you really are doing consultancy, and not just using your service company as a front for disguised employment.
Bet thing to do is to have a look at JobServe, Monster, Gis-A-Job, etc., and see if there's much out there that would suit you. If there is, it's not difficult to set up a Ltd company in a couple of days and become a contractor 'overnight'.
Basically, if you're already in a job, I'd stay there for a while until things start improving (which they are now, albeit very slowly - but things are starting to pick up). If you're not in a job anyway, you've got nothing to lose, so give it a go!
A good accountant? Talk to Chris Harris at Trafalgar - they've been superb for me. Tell him I recommended them to you.
12 May 2003, 09:50 AM
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I would say generally a big no the market is still very flat. However if your a good lead developer in java I would imagine that is one skill still much in demand though we are talking London here!
12 May 2003, 10:12 AM
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I'm starting to think it's maybe a little premature to leave the safety of the permie lifestyle, having spent the night working my way through various contractor sites.
Jeez, you thought Scoobynet was full of doom-mongers ... just take a look at the forums on Contractor UK
Jeez, you thought Scoobynet was full of doom-mongers ... just take a look at the forums on Contractor UK
12 May 2003, 10:45 PM
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It's not a good time to be a contractor. I've been contracting (on and off, mostly on) since 1988 and this has got to be the worst period I've ever experienced.
But, if you find work and you don't feel you qualify to avoid IR35 then I can wholly recomend www.prosperity4.com as a vehicle to reduce your tax liability (especially if you have to travel alot)
Good Luck in whatever you end up doing.
But, if you find work and you don't feel you qualify to avoid IR35 then I can wholly recomend www.prosperity4.com as a vehicle to reduce your tax liability (especially if you have to travel alot)
Good Luck in whatever you end up doing.
13 May 2003, 08:05 AM
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Hi Stu, i've been contracting in the general support/projects
arena since late 98; and probably close to the lowest rate per
hour types of jobs except helpdesks. I've not yet been out of work(thankfully), although i know 100's have.
The market as you have seen is quite low, but it was worse.
It is def showing improvement, there seems to be a lot more projects starting up. There are more ads for proj managers.
Before jumping assess all the other "strings to your bow" you may have, and compare with current requirements.
cheers
arena since late 98; and probably close to the lowest rate per
hour types of jobs except helpdesks. I've not yet been out of work(thankfully), although i know 100's have.
The market as you have seen is quite low, but it was worse.
It is def showing improvement, there seems to be a lot more projects starting up. There are more ads for proj managers.
Before jumping assess all the other "strings to your bow" you may have, and compare with current requirements.
cheers
13 May 2003, 10:01 AM
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Perhaps the best idea would be to test the water with a couple of interviews, and see how things pan out. If you get a good contract, it's easy enough to jump ship. My first contract started on a Thursday - on the Monday I was in a permie job, hadn't handed my notice in, and hadn't got a Limited company, etc.!
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