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    • JamesFuller
    • By JamesFuller 23rd Aug 17, 11:30 AM
    • 30Posts
    • 14Thanks
    JamesFuller
    HELP! Thinking of going into Contracting and have many questions. Please answer?
    • #1
    • 23rd Aug 17, 11:30 AM
    HELP! Thinking of going into Contracting and have many questions. Please answer? 23rd Aug 17 at 11:30 AM
    Hi there,

    I am thinking of going into contracting type of jobs.

    What type of option is better? Umbrella type or Ltd?

    How does it affect taxing?

    Also, how do you negotiate payments from the employing company when taking on contracting work?

    May have more questions as I learn more from your replies so any help welcome
Page 1
    • agrinnall
    • By agrinnall 23rd Aug 17, 3:50 PM
    • 18,426 Posts
    • 14,141 Thanks
    agrinnall
    • #2
    • 23rd Aug 17, 3:50 PM
    • #2
    • 23rd Aug 17, 3:50 PM
    Buy a book.
    • sangie595
    • By sangie595 23rd Aug 17, 6:22 PM
    • 3,723 Posts
    • 6,098 Thanks
    sangie595
    • #3
    • 23rd Aug 17, 6:22 PM
    • #3
    • 23rd Aug 17, 6:22 PM
    Buy a book.
    Originally posted by agrinnall
    I have to admit, I saw this post earlier, and my immediate reaction was not dissimilar. If you can't work out how to find the answers yourself, then this is possibly the worst idea you could have. Running your own business, and that is what contracting is, is not easy, and has loads of disadvantages. If you need to ask such basic "first step" questions, then you aren't ready.
    • ThemeOne
    • By ThemeOne 23rd Aug 17, 9:43 PM
    • 1,108 Posts
    • 923 Thanks
    ThemeOne
    • #4
    • 23rd Aug 17, 9:43 PM
    • #4
    • 23rd Aug 17, 9:43 PM
    You may find specialist contracting forums more helpful.

    Personally I wouldn't bother with umbrella companies, but you'll find others who will say they're worth the cut they take.

    Similarly, I do my company accounts myself, but others don't have the interest / patience and prefer to pay an accountant to do it.

    As regards negotiating rates, customs may vary between different fields of work. In my experience a lot of companies set the rate, and it's basically take it or leave it. For other clients I negotiate my own rates - for what it's worth my advice is don't go in too cheap or clients will think you're no good. Personally I've never had a client push back on rate so I'm clearly not charging enough!

    If you're negotiating your own rates, it's also a good idea to present terms and conditions to cover matters such as cancellation, postponement, travel on client business etc.

    Hope that helps as a starting point.
    • motorguy
    • By motorguy 23rd Aug 17, 10:53 PM
    • 15,374 Posts
    • 8,775 Thanks
    motorguy
    • #5
    • 23rd Aug 17, 10:53 PM
    • #5
    • 23rd Aug 17, 10:53 PM
    Hi there,

    I am thinking of going into contracting type of jobs.

    What type of option is better? Umbrella type or Ltd?

    How does it affect taxing?

    Also, how do you negotiate payments from the employing company when taking on contracting work?

    May have more questions as I learn more from your replies so any help welcome
    Originally posted by JamesFuller
    Get yourself over to forums.contractoruk.com

    Lots of helpful guides and people over there who are knowledgeable in that arena.

    Limited company is still the way to go if you're planning on doing it for more than one contract. The tax advantages arent what they were but its still worthwhile.

    You'll soon get to know how to pitch your day rate, however most adverts give a range anyway so sound out the agency but dont sell yourself short.

    Check out the likes of www.cwjobs.com, www.reed.co.uk and jobserve.co.uk.

    Look for the job roles, then talk to an agency. Dont expect an agency to find you work.

    I aim to have 80% of the pre-requisites for a job role (and ensure they are well documented on my CV) before i apply. For every 10 jobs i apply for, i expect to hear back from an agency for maybe 5 of them. For every five i hear back from i expect to get may 2-3 interviews. For every three interviews i expect to be offered one or two job roles.

    Rough rule of thumb of course.
    You are not special. You are not a beautiful and unique snowflake.
    • motorguy
    • By motorguy 23rd Aug 17, 11:00 PM
    • 15,374 Posts
    • 8,775 Thanks
    motorguy
    • #6
    • 23rd Aug 17, 11:00 PM
    • #6
    • 23rd Aug 17, 11:00 PM
    I have to admit, I saw this post earlier, and my immediate reaction was not dissimilar. If you can't work out how to find the answers yourself, then this is possibly the worst idea you could have. Running your own business, and that is what contracting is, is not easy, and has loads of disadvantages. If you need to ask such basic "first step" questions, then you aren't ready.
    Originally posted by sangie595
    I disagree. If you have the right marketable skills then the mechanics of how to minimise your tax liabilities and how best to pitch your rate and very much secondary and are easy to get advice on.

    Before my first contract i was as clueless. Once you get the first one over you and get to meet other contractors who are like minded then its these things are easy from there on in.

    Yes, there are disadvantages, but i have an awful lot of advantages dropped in to my company bank account every friday....

    But contracting isnt for everyone - a lot of people prefer / need the relative security of a PAYE job.
    Last edited by motorguy; 23-08-2017 at 11:21 PM.
    You are not special. You are not a beautiful and unique snowflake.
    • isplumm
    • By isplumm 23rd Aug 17, 11:00 PM
    • 1,789 Posts
    • 761 Thanks
    isplumm
    • #7
    • 23rd Aug 17, 11:00 PM
    • #7
    • 23rd Aug 17, 11:00 PM
    Get yourself over to forums.contractoruk.com
    Originally posted by motorguy
    Good advise here - I would also look at http://www.sjdaccountancy.com/ - they have a lot of guides you can read.

    Mark
    We’ve had to remove your signature. Please check the Forum Rules if you’re unsure why it’s been removed and, if still unsure, email forumteam@moneysavingexpert.com
    • motorguy
    • By motorguy 23rd Aug 17, 11:24 PM
    • 15,374 Posts
    • 8,775 Thanks
    motorguy
    • #8
    • 23rd Aug 17, 11:24 PM
    • #8
    • 23rd Aug 17, 11:24 PM
    Buy a book.
    Originally posted by agrinnall
    Theres no need. They're questions every contractor asks before their first contract and are easily answered.

    Although if he did buy a book he could offset it against his tax liabilities...
    You are not special. You are not a beautiful and unique snowflake.
    • agrinnall
    • By agrinnall 24th Aug 17, 7:29 AM
    • 18,426 Posts
    • 14,141 Thanks
    agrinnall
    • #9
    • 24th Aug 17, 7:29 AM
    • #9
    • 24th Aug 17, 7:29 AM
    Theres no need. They're questions every contractor asks before their first contract and are easily answered.

    Although if he did buy a book he could offset it against his tax liabilities...
    Originally posted by motorguy
    I did think of adding that to my post .

    It does seem that the OP has very little clue about contracting, so reading a book to get a better idea of the basics (it doesn't even have to be bought, a visit to the library would probably suffice) and then ask specific questions on anything that isn't clear would seem like a good idea.

    When I started contracting in 1992 I also didn't know that stuff, but back then there were no umbrella companies, and a limited company had to be formed by an accountant, so I asked him my questions - although of course there was no internet then so the options were a lot more restricted.
    • ThemeOne
    • By ThemeOne 24th Aug 17, 7:36 AM
    • 1,108 Posts
    • 923 Thanks
    ThemeOne
    The business side of contracting is not difficult at all, but everyone has these questions when they first start, and there's nothing wrong with asking them.
    • motorguy
    • By motorguy 24th Aug 17, 10:01 AM
    • 15,374 Posts
    • 8,775 Thanks
    motorguy
    I did think of adding that to my post .

    It does seem that the OP has very little clue about contracting, so reading a book to get a better idea of the basics (it doesn't even have to be bought, a visit to the library would probably suffice) and then ask specific questions on anything that isn't clear would seem like a good idea.

    When I started contracting in 1992 I also didn't know that stuff, but back then there were no umbrella companies, and a limited company had to be formed by an accountant, so I asked him my questions - although of course there was no internet then so the options were a lot more restricted.
    Originally posted by agrinnall
    Everyone has those same questions when they start out. It doesn't mean they have little clue about contracting as a career choice.

    Given there are exceptional forums for it and we have Google, reading a book is so last century though...
    You are not special. You are not a beautiful and unique snowflake.
    • JamesFuller
    • By JamesFuller 11th Sep 17, 1:22 PM
    • 30 Posts
    • 14 Thanks
    JamesFuller
    Hi,

    Thank you for your replies.

    I agree I should have done some research and I did, however I also thought to seek some info from people here. I appreciate your replies.

    Do you recommend any books or online guides that take you through this thoroughly?
    • directdebiter
    • By directdebiter 12th Sep 17, 4:08 PM
    • 232 Posts
    • 86 Thanks
    directdebiter
    Hi,

    Thank you for your replies.

    I agree I should have done some research and I did, however I also thought to seek some info from people here. I appreciate your replies.

    Do you recommend any books or online guides that take you through this thoroughly?
    Originally posted by JamesFuller
    As mentioned above contracting is alot to take in and consider and cant be given justice in a thread. Umbrella, Limited , IR35 lots to consider. As other posters have said check out www.contractoruk.com which is full of all the guides you will need. They have a first timers section and a forum for any specific contracting questions.
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