cancel
Showing results for 
Search instead for 
Did you mean: 

IT Contracting

Community Veteran
Posts: 1,585
Thanks: 59
Fixes: 2
Registered: 17-06-2007

IT Contracting

Given the state of the current long term jobs market I'm looking at going contracting for the next 6 months or year. Do I need to set up a company and do all of that sort of stuff or can I simply get paid directly and then do my NI payments every quarter and keep all my payment details for my tax return?
9 REPLIES
Community Veteran
Posts: 6,735
Thanks: 12
Registered: 02-02-2008

Re: IT Contracting

It's a PITA to do it yourself, unless you have clients who know you and are prepared to take you on directly as self-employed.
Not to mention all the insurance you'll need, and chasing agencies for payment if they are involved (they usually are).
Best to go via someone who offers different options. I've used JSA several times in the past, have a look at what different choices they provide.
(other organisations are similar) http://www.jsagroup.co.uk/
Community Veteran
Posts: 1,585
Thanks: 59
Fixes: 2
Registered: 17-06-2007

Re: IT Contracting

Thanks for that  Smiley
Community Veteran
Posts: 6,735
Thanks: 12
Registered: 02-02-2008

Re: IT Contracting

You're welcome.  Wink
I never actually set up my own company when I went via JSA (or ever). Though I did end up as a director of one of theirs for a year or so in order to get paid partly in dividends (not sure if that is still valid or worthwhile now with IR35 etc., it was a while back).
I'm now self-employed as a part-time IT consultant but I get all my business directly with no agencies involved and mostly by personal recommendation; personally I wouldn't ever recommend starting that way and larger businesses just will not deal with you.
Community Veteran
Posts: 1,571
Thanks: 3
Registered: 13-04-2007

Re: IT Contracting

Most IT jobs you must be a limited company or they wont touch you. I dont know any agency that would employ you if your not a LTD as you need public liability if you go on a contract for 3 months and its a £50,000 project and you screw up they will want to sue you. A few agencies may offer to act as a umbrella company  and pay you PAYE but they take a big cut if they do that.
As a LTD company you can claim travel a PC and all sorts of things so its well worth it as you save a fortune. What rate are you looking for as you need to pitch at the right rate for the jobs you can do? I used to get £250+ a day but if you are only doing first line support you are only looking at £7-10 per hour
N/A

Re: IT Contracting

Steve - one of our forum users, Sean Branagh fairly recently did a similar thing and at last report things were going OK. Might be an idea to PM him to see what advice he has to offer.
Moderator
Moderator
Posts: 17,256
Thanks: 905
Fixes: 105
Registered: 11-01-2008

Re: IT Contracting

Might also be worth looking at his http://www.nerdsonsite.co.uk/intro/UK/default.asp, if you can get over the name  Smiley
Will Moderate For Thanks
Community Veteran
Posts: 1,585
Thanks: 59
Fixes: 2
Registered: 17-06-2007

Re: IT Contracting

Quote from: Samuria

As a LTD company you can claim travel a PC and all sorts of things so its well worth it as you save a fortune. What rate are you looking for as you need to pitch at the right rate for the jobs you can do? I used to get £250+ a day but if you are only doing first line support you are only looking at £7-10 per hour

Oracle DBA work. I've been looking round at stuff and if I have to set up a Ltd co then there are set-up costs and wind down costs and potentially all the hassle of accounts. As I'm starting out work will be coming through agencies and its going to specific projects or support work so I'm not going to be able to skip round IR35 and I don't think I'll be looking at contracting as a long term career path, unless it really does turn out so well that I can then afford to put myself on the next set of Oracle courses.
Community Veteran
Posts: 2,938
Thanks: 172
Fixes: 3
Registered: 05-04-2007

Re: IT Contracting

Hmm, I may have to think about doing the same.
Though I've only been looking for 3-4 weeks so far, had a good payout from my other company.
So not broke yet Smiley
I worked back there for 3 months on a short term contract, but they managed to get me back on the payroll .. so I was being paid hourly but it was all going through PAYE.
Never really considered contracting really, but if I don't get much joy with the permanent job market over the next few months, I may have to.
Community Veteran
Posts: 1,585
Thanks: 59
Fixes: 2
Registered: 17-06-2007

Re: IT Contracting

Thats my way of thinking Alex, I think that in the short term contracting is more likely to work than a permanent job because it allows the companies to be more flexible and it keeps head counts down.
Depressingly there is not much work out there in some of the fields unless you're willing to work for either peanuts or at the other end of the country (often for peanuts too).