Permanent to Contracting (IT) - anyone done the move?

Dooksy said:
I'm one step down from an architect now and tbh it's boring as sin, I'd rather go back into support. So much paperwork to do to please people who have no other job than to make people like me do pointless paperwork.
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It's quite a mind-shift being an architect (sorry for the BS bingo there). Even though I spent the first eight years of my career being hands-on (and a natural techie in my opinion - wrote my first program at the age of 5), I got bored of the responsibility of having to support systems.

Being an architect you get to play with the toys but not be responsible for them, however in the larger corporations you don't really have any hands-on at all, unless setting up a proof of concept or whatever. But yes, it's ultimately a job about governance and there is a lot of paperwork involved. It does vary between companies though.
 
another update

i told my employer i can contract at £200 a day until end of year on a month by month basis

they came back with a £160 a day offer, im tempted to meet them at £180 absolute lowest otherwise not worth it for me

what you reckon?
 
Dooksy said:
What do you do? I personally don't think it's worth contracting for less than £200 a day.
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basically Third Line IT Infrastructure.

thing is i do not want to be here and with the unknown fact about contracting and time to get a contract, this could be my way in and looks good on CV that i have already contracted, albeit for 3 months.

that would leave me with enough cash to have Xmas off and then start looking for work in Jan

or leave end of Sept and start fresh :)
 
3rd line at £200? Sorry but that's a really bad rate IMO. Should be £300 minimum depending on experience. In your shoes I would have asked for £400+ considering they seem keen to keep you on. They are probably trying their luck to get you in at £150.

Also if contracting and you have gaps in your employment you may get asked why, be prepared to have a good answer, ie home renovation, courses/exams. Sitting on your bum for 3 months sometimes doesn't look too good and may make the employer/interviewer think you are unemployable for whatever reason.
 
lmfy2k said:
another update

i told my employer i can contract at £200 a day until end of year on a month by month basis

they came back with a £160 a day offer, im tempted to meet them at £180 absolute lowest otherwise not worth it for me

what you reckon?
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I'd say no, you offered £200 a day

seems pretty low to me regardless tbh... what rate was the other contracting offer for? They ought to be paying well above that to compensate both for the tax and the short term nature of this month y month deal.

Otherwise just walk away
 
lmfy2k said:
I've told management £200 per day or i walk, lets see what happens

they need me more than i need them right now :)
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Beware .... Even if they pay that rate, I bet they will pay you as slowly as they can. I hope you are looking for real contracts in parallel and at a better rate. You should make a clean break.

Much as recruitment agencies are maligned, they do protect you from slow paying clients.
 
Also bear in mind that's £200 +VAT... but that should affect them as they are most likely VAT registered..

BTW register for VAT (follow accountants guide).. I'd go on the normal VAT scheme initially whilst you make all your company purchases (including any pre-setup costs ;)).. and once you've settled and stopped spending, go on the flat rate scheme, to save yourself a few hundred a month.
 
If the agents are to be believed (...) and you have a strong CV then it sounds like you are underselling yourself. £200/day for someone with at least 9 years experience in IT sounds pretty low, especially as you would presumably be the ideal candidate with 9 years experience at that company and they know you can do the job well. I wouldn't worry too much about 4 weeks notice period - sure you might miss out on the some contracts but depending on the role a 4 week wait may be acceptable, plus if you have any annual leave accrued you could potentially use that to shave a bit off. In fact must be nearly down to 3 weeks now having handed your notice in.

The flippant side of me might be tempted to tell them that while they've been dilly-dallying over your very reasonable £200/day offer, you've been researching the market and your rate is now £250/day (I wouldn't actually recommend this as it puts them in a position where they lose face, but it's a way of pushing back on their derisory £160/day offer) :)

Start applying for jobs on more reasonable rates (i.e. £300/day+) in any case, nothing to lose and having already handed in your notice you should be in a reasonable position, most contractors will be lining up their new roles with less than a month remaining on current anyway.
 
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As you're going from staff/permie to contract in the same role at the same company, is £200/day even worth it as IR35 will be in effect?
 
alx said:
As you're going from staff/permie to contract in the same role at the same company, is £200/day even worth it as IR35 will be in effect?
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No and nor is doing 3rd line work on the back of 9 years experience for that rate.

I know service desk guys on £155-£200 and 2nd line on £250-300.
 
While we're on the subject of contracting and accounting, has anyone ever moved from a Ltd company to an umbrella company? I don't mean one of these dodgy Isle of Man scheme ones, I mean a legit one such as Contractor Umbrella?

I have no issues at all with my accountant, but I am crap with money and crap with paperwork, having a steady monthly income without worrying about any tax etc does seem appealing.
 
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I started when I was 24, I'm 30 now.

The UK is a bit of a ****er really in what they do tax wise. Contracting out of here though, I get subjected to normal tax (though France favours families etc. so I actually pay ~20% tax without ltd company etc).
Though it's worse than it was in the UK, a good accountant will help you expense what you can through the business and you can do a fair chunk. Home office can sometimes be applicable up to 450 a month (used to be, no idea what it is now), phone bills etc etc. so what you end up paying yourself in salary and divs ends up being much more your money.
 
Im a CS student, havent even finished my degree yet, but how many years of permie exp did you guys have before you moved? Any idea how contracting would work over in a place like Dubai?
 
so just an update on this and to close the thread

handed notice in at work (4 week notice)

they asked me to stay on as contractor but would not pay me my asking rate

2 weeks into my notice whilst i was looking for contracts, I had an offer for a permie role close by to home and and at a decent salary

went for interview (1st one in 9 years), got the job 2 days later

starting in October

im on my last 3 days notice at current place and looking forward to the change

so my dream of going from permie to contracting didn't happen this time around but made me get up from my "comfort" zone and secured a new job with a large salary increase

going to wait a few weeks to see how i get on then i need to close my LTD and Business bank account which i had setup for contracting


Thanks again for all support and advice :)
 
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You don't need to close your Ltd company, it can be dormant I think (not 100% but an accountant will advise better) and just fill in zero returns.

Business bank account is also a strange one, it can be left alone but I suppose if there's a charge for it (wouldn't imagine they would be fee free) then closing it would be the best option.
 
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