Contracting for the first time

Dial Hard

So, today I got offered a project management role that is a fantastic opportunity and is paying more than a 50% increase on my current salary. For the first time, however, I'll be working as a contractor as opposed to an employee so just looking for advice/insight/experience from anyone who has done the same.

My dad has been self-employed for years so I'll have a good long chat with him when he gets back from his holidays and he's also going to set up a meeting with his accountant but I said I'd also ask here in the meantime, knowledge being power and all that.

Thanks in advance for any advice.

bren2002

Are you being placed by an agency? They can take 10-20% commission

Dial Hard

bren2002 wrote:

Are you being placed by an agency? They can take 10-20% commission

Nope, I'll be invoicing the company directly, no agency/middle man involved at all.

First Up

Dial Hard wrote:

Nope, I'll be invoicing the company directly, no agency/middle man involved at all.

Best to get expert advice but you might consider setting up as a sole trader. If you treat your new "employer" as a client, there is scope to offset costs (including overheads and depreciation) against income.

Nody

Dial Hard wrote: »

So, today I got offered a project management role that is a fantastic opportunity and is paying more than a 50% increase on my current salary. For the first time, however, I'll be working as a contractor as opposed to an employee so just looking for advice/insight/experience from anyone who has done the same.

Thanks in advance for any advice.

Also keep in mind you are going to have to pay taxes, social insurance, holidays, sick leave etc. as well so don't take it as a 50% higher net salary.

Squall Leonhart

.. Plus you won't be paid for public holidays, annual leave or sick leave. Yes the money is better but if you take 4 weeks holidays year it's a months salary less you're being paid, just something to be mindful of - you've gotta plan more for time off than as an employee.

Good luck with it

Stheno

DId you post that in the wrong thread?

Dial Hard

Squall Leonhart wrote:

.. Plus you won't be paid for public holidays, annual leave or sick leave. Yes the money is better but if you take 4 weeks holidays year it's a months salary less you're being paid, just something to be mindful of - you've gotta plan more for time off than as an employee.

Yeah, I was aware that I'd literally only get paid for the hours I worked when pricing it. It's likely to be a 3-4 month contract (term isn't fixed, it's "however long it takes") so I'm not too concerned about leave, I can take time off after it wraps up.

Stheno wrote:

DId you post that in the wrong thread?

Me? No.

fits

Im in same position OP. Moving to external consultant role come April 1st. Probably advisable to get professional advice about best way to do it.

bren2002

Have you agreed terms for overtime? Lots of places have a sweat the assets attitude so best to clarify expectations.

Stheno

Dial Hard wrote: »

Me? No.

no twas another poster.

bren2002

There was a thread running a while back quite a bit of it is dev iirc but lots should be applicable.

http://touch.boards.ie/thread/2057445546/1

Dial Hard

fits wrote:

Im in same position OP. Moving to external consultant role come April 1st. Probably advisable to get professional advice about best way to do it.

Yeah, will be meeting with my dad's accountant next week, just said I'd ask here in the meantime. Best of luck with your move.

bren2002 wrote:

Have you agreed terms for overtime? Lots of places have a sweat the assets attitude so best to clarify expectations.

Project scope already in place and a detailed project plan is one of the first tasks we've agreed once I've spent a week or two getting a detailed understanding of the business. I'll be invoicing for hours worked so it's not a case of "Hammer her for all we can between 9 and 5". Anything over 37.5 hours will be chargeable at time and a half.

Squall Leonhart

Dial Hard wrote:

Project scope already in place and a detailed project plan is one of the first tasks we've agreed once I've spent a week or two getting a detailed understanding of the business. I'll be invoicing for hours worked so it's not a case of "Hammer her for all we can between 9 and 5". Anything over 37.5 hours will be chargeable at time and a half.

In a project management role you stand to make good overtime with that deal. I'd very verrry surprised if you get your 37.5hr weeks, but if you enjoy the work and the experience then that's not a bad thing at all.

Mrs OBumble

Dial Hard wrote: »

Nope, I'll be invoicing the company directly, no agency/middle man involved at all.

Make sure you have appropriate professional liability insurance in place.

I once worked with a woman who was dopey enough to say "you only need that if you're incompetent": she was contracting to one of the largest commercial entities in the country, and had no concept that they could cause her to lose her home just by deciding to sue her and being able to afford better lawyers.

Musicman2000

Probably better off setting up and umbrella company , than going down the sole trader root its less hassle .

fits

Could someone pm me the name of a good umbrella company? Im not in IT, Im a research scientist. Relocating to Ireland.

Stheno

fits wrote: »

Could someone pm me the name of a good umbrella company? Im not in IT, Im a research scientist. Relocating to Ireland.

Contractingplus and icon would be the two I know best

fits

I contacted icon and they gave me some very clear information and documentation. Question now is whether to go for paye or director option. I need to buy some equipment and being able to claim it from tax is appealing (director option). Main advantage to paye is being a class a prsi contributor which gives illness and unemployment benefit. I'm married so I guess if I were unemployed I can transfer tax credits to husband.

Don't know what to do.

bren2002

I'd go director. Social welfare is worth f all realistically.