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Contracting 23:53 - Sep 24 with 1201 viewsgreyhound

Anyone on here do it.

Got an interview lined up. I'm currently full time employed with a very good benefit package, but money on the 18 month contract is a 75% increase.

Just interested in some risk vs reward experience from people. See. S like a huge leap. No holiday pay etc
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Contracting on 06:59 - Sep 25 with 1115 viewspennblue

Pro's: you get more cash, you don't get involved in politics

Con's: easy to never take a holiday, perception is you have more than you do, not neccesarily good for career, ie. if you want to end up at the top, contracting is not usually the best route

If cash > career; contract

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Contracting on 07:26 - Sep 25 with 1069 viewsdeliasplums

I’ve been doing it for about 4 years. I personally haven’t looked back but I was director of a company before so had some idea about running a business. You need to think of it in those terms otherwise you can come unstuck with admin, accounts etc.
Good luck!

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Contracting on 07:34 - Sep 25 with 1058 viewsNictate

I have been doing it 7 months now. Highly recommend it.
I had the luxury of a settled contract from previous employer so had a decent safety net.
As you know the pay is better, a decent accountant is invaluable to help best manage this, national insurance, divs, tax etc...
Quality of life is better, is my own opinion. Go for it.
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Contracting on 11:42 - Sep 25 with 971 viewsgreyhound

Contracting on 07:34 - Sep 25 by Nictate

I have been doing it 7 months now. Highly recommend it.
I had the luxury of a settled contract from previous employer so had a decent safety net.
As you know the pay is better, a decent accountant is invaluable to help best manage this, national insurance, divs, tax etc...
Quality of life is better, is my own opinion. Go for it.


Thanks for the replies on this. Good to hear some balanced opiniins

I'll do the interview and see where it takes me
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Contracting on 13:07 - Sep 25 with 914 viewsAinsleyBlue

Yep, for a decade or so.

Pros - avoiding politics, move on if a job doesnt suit, autonomous working, rewards still outweight the aggo of managing one's company finances

Cons - navigating govt's frequent system and tax changes, discipline to maintain a pension, presenteeism pressure - booking leave can be tricky, risk of gaps between contracts and having a fallback fund to see you through, can be stressful given client expectations

A good accountant is a must. Umbrella companies tend to be crap. Happy to share further tips if you do take the plunge.

All the best with yr interview!
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Contracting on 13:48 - Sep 25 with 858 viewsOldsmoker

Have you created your own Limited company?
This is the best way to go about contracting but you could use an Umbrella company. Anything you deem essential for your work such as a mobile phone, Computer, Broadband connection can be paid through the company and this eats into your profits which attract corporation tax. The lower the profits the lower the corporation tax.
You will need a second person to be your Company Secretary.
Pay youself a nominal amount of salary so you pay NI which will give you the state pension. Don't pay all your salary as Dividends as the taxman does not like this but it is within the law to do so. Dividends are taxed at 10% whereas salary attracts Income Tax, Employee NI and Employer NI and can work out as 40 to 50% deductions.
You will need Public Liabilty Insurance -well thats what it was called when I contracted. It covers any damage you do to people or property at the company you're working at.
Register the company for VAT and claim as much as you can but don't take the p!ss. If they find out you're claiming VAT off your skiing holiday be prepared for a heavy fine.
I found the car mileage allowance quite lucrative. It was 24p per mile travelled so I would rather travel Bristol to Reading and back each day because I could reimburse myself, taking money out of the company before tax. If you stay in a hotel but the daily costs are less than the mileage then claim for the car mileage. Ipswich to Edinburgh every day is a bit of a stretch so be careful. Interviews can be claimed too as a company expense.
Be especially nice to everyone as they might rehire you if you have a non-work period. I tried this hard luck story on a company once and they found me 3 months work. Gave me time to secure another longer term contract.
Good luck.

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