Working on contract?

[The Mad Rapper]

I've been working in London for over a year now, in a permenant position. I've been offered a 6 month contract in Birmingham, with the possibility of that being extended.

I have no real desire to leave London (for personal reasons) but they are offering me £450 per day.

I have never worked on contract before and haven't got the first idea how to go about it. Do I need to set myself up as a company? How much tax would I have to pay on that roughly?

Any advice from any contracters out there?

Just trying to decide whether this is worth it or not.

TIA.

 

[panthro]

I have found, in the industry I am in, you have to be very experienced as a contractor and know what your doing, because when you join our company as a contractor, they expect you to know everything from day one. The pay is (as you have stated) a lot better, but remember you have to make provisions for not having paid leave, sick pay and other company perks.

 

[Admiral Huddy]

Contract market isn't what it used to be.. I'm assuming you are talking about IT contracting.

If you are, please consider IR35 implications. You might be best off working under an umbrella company for a while, rather than having the hassle of setting up your own Ltd company. Giant, for example, will calculate your pay, TAX and divididends saving you a fortune on TAX and NI for a small fee.

 

[[DOD]Asprilla]

I'm a non-IT contractor working under an umbrella company.

I do jobs here and there, including outside of London and it's pretty easy really. The only things that you have to watch out for are making sure that you have enough money to cover yourself for when you aren't working, in between contracts and it can make it a little hard for you to get a mortgage if you want one.

Other then that it's great. My umbrella (DMS-London) allow me to take home 80% of my gross after all deductions without having to go though the rigmarole of claiming expenses back, which is great. That would put you on £360 a day take home.

Can't complain about that really, can you?

 

[ALLI]

I have found, in the industry I am in, you have to be very experienced as a contractor and know what your doing, because when you join our company as a contractor, they expect you to know everything from day one. The pay is (as you have stated) a lot better, but remember you have to make provisions for not having paid leave, sick pay and other company perks.

but you can claim a heck of a lot in expenses so swings and roundabouts.

i was on £20 an hour on my last contract (which lasted for 12 months) and claimed £25 a day for food allowance, and mileage @ 40p/mile

i used an umbrella company, and they paiid 2.50 per day on top of my £25 towards holiday pay.

have a look at a company called giant strongbox, my old csm was someone called amanda pickton if she's still there.

 

[Admiral Huddy]

but you can claim a heck of a lot in expenses so swings and roundabouts.

i was on £20 an hour on my last contract (which lasted for 12 months) and claimed £25 a day for food allowance, and mileage @ 40p/mile

i used an umbrella company, and they paiid 2.50 per day on top of my £25 towards holiday pay.

have a look at a company called giant strongbox, my old csm was someone called amanda pickton if she's still there.

I used them for a bit last year.. i was quite impressed since for ten years i was runing my own ltd co. Much easier.