Contracting or Permanent job?

Hello,

Just wanted to know which is a better option?
1)Permanent role or 2)Contracting??

I am working in a Software firm as Permanent employee..But getting tempting offers to work as a contractor..It is very lucrative from salary point of view..

But wondering , what are the drawbacks of Contracting ??And if there are none,why is every1 not a contractor??

Thanks
Ashish

Basically, contracting is more risky which is why they pay loads of money, that's the trade off. You'd also either have to use an umbrella company or incorporate yourself and have an accountant do the paperwork for you which will decrease the profit making. if you do the paperwork yourself, this is not my recommendation but I do it myself but if I had to do it again, I'd probably prefer eating dirt glass before going through it again. NOw that I have done it, there is no reason for me to have someone else help me with it.
The other part of its your pension, which you will have to figure out yourself too but there are many options which you can use to take care of it.

You have to also consider if you like moving from company to company and starting over again and again. There is something to be said about working in one company that you like and are comfortable with so it really is a personal choice.

The major reason people do not opt for contracting is the stress of adjusting to a new environment every 6 months.

In a perm position you stay on for years, get comfortable with the people, their expectations, work style etc, basically you stay within your comfort zone once you are settled.

In contracting you are always on your toes. It can be stressful, but there are people who like that kind of lifestyle.

Hmm..
No wonder contractors are paid so much then!!

Thanks for the info..

Ashish

Dear Ashish,

Contracting has pros and cons.. but i can only see pros and no cons, ever since i started contracting..

Like most of the Indians i want to go back to india after a few years. whats the point in me working as an employee and getting paid peanuts..

Most of the indian IT guys are good and with HSMP you have independence to work for any company. why not contract then?

Working through Paye umbrella would once again mean being someone elses employee and getting peanuts after loads of tax cut.. Forming a limited company is easy get a good accountant and they will do everything for you mate...

My accountant can help you out.. search for contractorsinuk(dot)co(dot)uk

-ss

Hi

Contracting means more risk as many people discussed about, it is not always true that you will be toes. Ofcourse as a consultant companies expect you to be more knowledgable and techhi. I am doing contracting since last 5 years and only changed two projects

My first one went for two years and then had to leave because of taxation issues. (If you work at some company/same project for more than 24 months you cannot claim expenses)

second one also almost went for two years.

So what I am saying here is, you may not always need to change the contracts every 6 months. As market is good, it is not even that stress ful. When I changed the projects I hardly had few days in between.

Again it all depends on how you take it.

get £5000/ a month home and can take more holidays with out pay
or get £2500 a month and get paid for your leaves


Coming to forming company or using Umbrella companies,

recently Gordon Browen changes the rules (many people are not aware of) and made a lil bit tough about your expenses (which is major part as expenses are tax free), Now it is easy for a bigger comany to show expenses then smaller ones. Well, that is altogether a seperate discussion.

if anyone interested I can discuss about that and can tell you how to get away with less tax..

Hi frns,

Right now i am in permanent job.
But i want to shift to contracting jobs.
I have uploaded to many job portals. I am not getting calls.
Is this because i am new to UK?
Is there any other way to get contracting jobs.
I am into testing field with 6 years of experience with HSMP.
Do you know any consultants who recruit testers?
Please guide me.

Thanks!!
Niruv

Hi Nerav,

It all depend on how you present your experience, your past experience and clients you worked with. Testing is really in boom you should definitely get calls atleast.

We can help you in marketing your cv. Send me your cv to Azlan.san@gmail.com

I can advise you more after looking at your CV.

Best wishes
Azlan

Hi Azlan,

I have sent my CV to your mail id.

Please update me ASAP.

Thanks!!
Niruv