Starts as Contractor career

Hi

Am planning to start career towards software contractor, how the market now for contractors and would like to get some input from members as well.

nm wrote:Hi

Am planning to start career towards software contractor, how the market now for contractors and would like to get some input from members as well.

Utter pants. I've been a contractor since 1992 and have been forced into permiedom, things are so bad. Rates are very low even when there is a real contract at the end. I've seen plenty from under 10 quid an hour. Tesco's in Paddington are paying 12.50 an hour....

The issue is Indian outsourcers, rates have plummeted, what was a £450 a day job is now via aforesaid outsourcers, £180 a day. Not much better than permie.

Look for permie jobs, unless u can survive on such low rates, or consider Germany/NL/Switzerland, that's where I'm off to!

Here lie the Ashes of UK Contracting, RIP....

Oh, read here for the real deal;

http://forums.contractoruk.com/contractor-uk-forums/

Thanks mate, currently am in a permanent role and just thought to give a try.. am really looking out to change my current job as its moving out to outsourced, so just looking for another job.

nm wrote:Thanks mate, currently am in a permanent role and just thought to give a try.. am really looking out to change my current job as its moving out to outsourced, so just looking for another job.

Me too. One of my friend is regularly cashing in £450 a day and I'm envious. He has a bigger car, bigger house, even his dinning table is bigger. All I have is some lousy perma job, where I get 2% increment.

HSMP_maybe wrote:

nm wrote:Thanks mate, currently am in a permanent role and just thought to give a try.. am really looking out to change my current job as its moving out to outsourced, so just looking for another job.

Me too. One of my friend is regularly cashing in £450 a day and I'm envious. He has a bigger car, bigger house, even his dinning table is bigger. All I have is some lousy perma job, where I get 2% increment.

Don't be, contracting is a mindset, not everyone can do it. Remeber out of that £450 a day there is no holiday pay, sickpay, accountnants fees have to be paid, and u have to factor in long periods of not working, scouring jobserve. Part of that £450 goes into a fund which we contractors call a 'warchest' in case of large gaps.

Rates are plummeting that's for sure! I think contracting is now dead, or certainly dying, the rates don't justify it anymore.

Wanderer wrote:

HSMP_maybe wrote:

nm wrote:Thanks mate, currently am in a permanent role and just thought to give a try.. am really looking out to change my current job as its moving out to outsourced, so just looking for another job.

Me too. One of my friend is regularly cashing in £450 a day and I'm envious. He has a bigger car, bigger house, even his dinning table is bigger. All I have is some lousy perma job, where I get 2% increment.

Don't be, contracting is a mindset, not everyone can do it. Remeber out of that £450 a day there is no holiday pay, sickpay, accountnants fees have to be paid, and u have to factor in long periods of not working, scouring jobserve. Part of that £450 goes into a fund which we contractors call a 'warchest' in case of large gaps.

Rates are plummeting that's for sure! I think contracting is now dead, or certainly dying, the rates don't justify it anymore.

Hmm. That's true too.

Hi

What would be the tax rate applicable to contractor.? Do we have any site where i can calculate my income after deducting tax in contract job.? This will give me a concrete idea about what i'll get at the end if i do contracting,i just targetting to get 20% morethan what am getting from my current premimu job.

HSMP_maybe wrote:

nm wrote:Thanks mate, currently am in a permanent role and just thought to give a try.. am really looking out to change my current job as its moving out to outsourced, so just looking for another job.

Me too. One of my friend is regularly cashing in £450 a day and I'm envious. He has a bigger car, bigger house, even his dinning table is bigger. All I have is some lousy perma job, where I get 2% increment.

"Envy is based on an incomplete understanding of the other person's situation."

His might be bigger but he might prefer your dining table.

Vanadil wrote:
"Envy is based on an incomplete understanding of the other person's situation."

I second you on this. Probably, he may have higher risk apetite, different skills. Or present at right place ,right time.

nm wrote:Hi

What would be the tax rate applicable to contractor.? Do we have any site where i can calculate my income after deducting tax in contract job.? This will give me a concrete idea about what i'll get at the end if i do contracting,i just targetting to get 20% morethan what am getting from my current premimu job.

U need an accountant for this but figure on netting 65-70% of gross, remembering to pay ur VAT and also remembering as a limited u pay two lots of NI.

It also depends whether you are caught by IR35.

Suggest you do some googling!

Vanadil wrote:

HSMP_maybe wrote:

nm wrote:Thanks mate, currently am in a permanent role and just thought to give a try.. am really looking out to change my current job as its moving out to outsourced, so just looking for another job.

Me too. One of my friend is regularly cashing in £450 a day and I'm envious. He has a bigger car, bigger house, even his dinning table is bigger. All I have is some lousy perma job, where I get 2% increment.

"Envy is based on an incomplete understanding of the other person's situation."

His might be bigger but he might prefer your dining table.

Not consolation enough, but I'll live.

Tried on google, but i could not get a clear picture on it, say if i do contracting for 300£/day, what will be in my pocket at the end after all tax and fee.?

nm wrote:Tried on google, but i could not get a clear picture on it, say if i do contracting for 300£/day, what will be in my pocket at the end after all tax and fee.?

Depends on whther u r caught by IR35 or not. Let's assume you are, and your expenses are realistic, I'd say u'd get about 70% net to gross but it depends how u do it. U might want to pay ur self a small wage and declare a dividend quarterly.

As u r new to contracting I'd recommend u use an umbrella where you can forget all the accounting tricks and tips and just get PAYE'd. I'd expect u'd return 60% net to gross this way, maybe bit less.