IT Contracting
07 April 2002, 09:44 PM
#1
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I've just been lucky enough to land my first IT contract, and am in the process of looking into what I need to do in terms of the pros and cons of setting up a limited company, finding an accountant, the implications of IR35 and all those kind of fun things.
I know there are a quite a few people who work in IT out there, so I would be grateful for some recommendations for decent web resources, or any pearls of wisdom for a first time IT contractor.
Cheers,
Christian
I know there are a quite a few people who work in IT out there, so I would be grateful for some recommendations for decent web resources, or any pearls of wisdom for a first time IT contractor.
Cheers,
Christian
08 April 2002, 04:33 PM
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I'm looking at contracting soon. Anyone know how much take home do you get from contracting (as a 1 man i.t. contractor) vs how much take home from permanent. i.e. after income tax/contracting taxes etc. have been taken off.
I know IR35(?) means a bit less take home these days but is it by much???
I know IR35(?) means a bit less take home these days but is it by much???
08 April 2002, 05:08 PM
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PCG Website
As to money it all depends on what you contract in etc..
Real time Defence work then low pay but longer contracts and more secure.
Commercial stuff then high pay but shorter contracts and less security.
JGM
As to money it all depends on what you contract in etc..
Real time Defence work then low pay but longer contracts and more secure.
Commercial stuff then high pay but shorter contracts and less security.
JGM
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08 April 2002, 07:24 PM
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My advice (for what it's worth):-
The contracting market place is in a state, possibly the worst ever time to find a contract in IT.
Rates have tumbled (between 50-60% what they were last year).
Many contractors are out of work or 'between contracts'.
Think very carefully about going contract at this moment in time.
By the time you loose an additional 12% Employers NI due to IR35 you might find you are worse off than in a good permie position, and if you can't get a good permie position you shouldn't even be considering going contract, not right now anyway.
I know plenty of good, experienced and steady contractors who have been out of work since September last year.
Most of the contractors who are coming to the end of their contracts are not getting renewed.
Personally if I was a permie right now I'd stay put.
It should improve towards the end of the year, but it's been on a steady fall since the middle of last year.
Good luck whatever you decide.
The contracting market place is in a state, possibly the worst ever time to find a contract in IT.
Rates have tumbled (between 50-60% what they were last year).
Many contractors are out of work or 'between contracts'.
Think very carefully about going contract at this moment in time.
By the time you loose an additional 12% Employers NI due to IR35 you might find you are worse off than in a good permie position, and if you can't get a good permie position you shouldn't even be considering going contract, not right now anyway.
I know plenty of good, experienced and steady contractors who have been out of work since September last year.
Most of the contractors who are coming to the end of their contracts are not getting renewed.
Personally if I was a permie right now I'd stay put.
It should improve towards the end of the year, but it's been on a steady fall since the middle of last year.
Good luck whatever you decide.
09 April 2002, 12:20 PM
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Listen to Sheepsplitters advice. After many assurances my contract did not get renewed in November, I'm still looking and the rates have fallen....
Anyone out there need a PM with Prince accredition??
Anyone out there need a PM with Prince accredition??
09 April 2002, 12:42 PM
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Congrats on finding a contract!
www.prosperity4.com will take care of it all for you, you'll get paid on PAYE. I've been a contractor for twelve years so have stuck with my limited company but did seriously look at these guys.
NI is where you get really stung with IR35, costs me personally an extra 8k a year plus I can't claim for most of my expenditure, like new PCs, software, training. If you're earning less than 40k as a perm, contracting should see you a bit better off but it's nothing like the old days.
In those twelve years I have never known such a bad time to be a contractor. I have lots of friends out of work. My advice is put that first 10k in a bank account for when you're out of contract, you'll need it.
www.prosperity4.com will take care of it all for you, you'll get paid on PAYE. I've been a contractor for twelve years so have stuck with my limited company but did seriously look at these guys.
NI is where you get really stung with IR35, costs me personally an extra 8k a year plus I can't claim for most of my expenditure, like new PCs, software, training. If you're earning less than 40k as a perm, contracting should see you a bit better off but it's nothing like the old days.
In those twelve years I have never known such a bad time to be a contractor. I have lots of friends out of work. My advice is put that first 10k in a bank account for when you're out of contract, you'll need it.
09 April 2002, 12:46 PM
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I wouldn't get into contracting at the moment. I've been doing it a couple of years, and I think I probably now have a large enough network of contacts to ride out the downturn.
IR35 would have meant a £900 a month decrease in take-home for me, so I had the contract changed (I work directly for a client). I recommend Accountax for your contract reviews
Oh yeah, agents are really quite crap. You need to build up a network of your own contacts. Get on the phone to previous employers etc.
IR35 would have meant a £900 a month decrease in take-home for me, so I had the contract changed (I work directly for a client). I recommend Accountax for your contract reviews
Oh yeah, agents are really quite crap. You need to build up a network of your own contacts. Get on the phone to previous employers etc.
09 April 2002, 01:38 PM
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Just thought I'd add my views to the thread - I'm one of these agent-types Jlanng was so complimentary about 
The IT market is bad Europe-wide - certainly worse than I've seen it my 4 years experience. My colleagues here in Netherlands think it's as bad as it's been since early 90's.
No escape down-under
As mentioned earlier contract rates have gone into free-fall, in certain areas (Web content/Project management) rates have dropped by up to 70% compared to the crazy times just post-Y2K.
Despite a slight pick-up since the start of this year I'm still getting fairly gloomy forecasts from a number of our major clients - job cuts have happened across the board, and they are more to come.
Despite the general reputation of IT rec consultants - some of us have found it pretty tough dealing with the exodus of long-term contractors - it's been a privilege to work with some really top guys (and girls!) - a lot of whom are still out of contract.
I guess it's pretty straightforward - IT skills are a commodity and markets fluctuate but this doesn't make it any easier when one is dealing with indivuals and often whole families relying on entirely on the income from IT contracting.
We've had some buoyant times with a lot of money made by all - WHEN things pick up again I'll deffo be a little more careful with the quids!! It'll ALL be going into the Scoob!!
BTW is there any seriously experienced banking datawarehouse boffins out there (business knowledge as important as technical)?! If so, drop me a line - I've got a juicy contract role in the Netherlands (had to ask )
The IT market is bad Europe-wide - certainly worse than I've seen it my 4 years experience. My colleagues here in Netherlands think it's as bad as it's been since early 90's.
No escape down-under
As mentioned earlier contract rates have gone into free-fall, in certain areas (Web content/Project management) rates have dropped by up to 70% compared to the crazy times just post-Y2K.
Despite a slight pick-up since the start of this year I'm still getting fairly gloomy forecasts from a number of our major clients - job cuts have happened across the board, and they are more to come.
Despite the general reputation of IT rec consultants - some of us have found it pretty tough dealing with the exodus of long-term contractors - it's been a privilege to work with some really top guys (and girls!) - a lot of whom are still out of contract.
I guess it's pretty straightforward - IT skills are a commodity and markets fluctuate but this doesn't make it any easier when one is dealing with indivuals and often whole families relying on entirely on the income from IT contracting.
We've had some buoyant times with a lot of money made by all - WHEN things pick up again I'll deffo be a little more careful with the quids!! It'll ALL be going into the Scoob!!
BTW is there any seriously experienced banking datawarehouse boffins out there (business knowledge as important as technical)?! If so, drop me a line - I've got a juicy contract role in the Netherlands (had to ask
)
04 August 2002, 05:02 PM
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Seamus300, YHM
father_jack - my wife already has a list of things to spend the first 10 grand on
I guess the sorts of questions I have at the moment are principally around finding an accountant, what type of company to go for, and the implications of IR35.
What makes a good accountant?
What sorts of things should they be able to do for you?
What is the going rate for the services they offer?
Does it matter where they are based (i.e. should you choose one near to where you are living/working)?
What accountancy firms would you recommend?
What accountancy firms would you avoid?
Should you go Limited or Umbrella?
What effect does IR35 really have?
Cheers,
Christian
[Edited by Christian_Driver - 4/8/2002 5:03:39 PM]
father_jack - my wife already has a list of things to spend the first 10 grand on
I guess the sorts of questions I have at the moment are principally around finding an accountant, what type of company to go for, and the implications of IR35.
What makes a good accountant?
What sorts of things should they be able to do for you?
What is the going rate for the services they offer?
Does it matter where they are based (i.e. should you choose one near to where you are living/working)?
What accountancy firms would you recommend?
What accountancy firms would you avoid?
Should you go Limited or Umbrella?
What effect does IR35 really have?
Cheers,
Christian
[Edited by Christian_Driver - 4/8/2002 5:03:39 PM]
04 August 2002, 07:09 PM
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Have a look at this site.
Simon Dolan
E-mail Address(es):
simon@sjdaccountancy.com
http://www.sjdaccountancy.com/about/ourservices_prof_indem.html
http://www.sjdaccountancy.com/index.html
All the best,
John Catlin
[Edited by John Catlin - 4/8/2002 8:22:02 PM]
Simon Dolan
E-mail Address(es):
simon@sjdaccountancy.com
http://www.sjdaccountancy.com/about/ourservices_prof_indem.html
http://www.sjdaccountancy.com/index.html
All the best,
John Catlin
[Edited by John Catlin - 4/8/2002 8:22:02 PM]
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