Checklist to go contracting?

magooly

Lads

What do I need to do to cross over from a permanent role to contracting at daily rates?. Register as a sole trader?.

Whats the checklist to get me started quickly?

Im a Senior JEE developer / Tech Lead with 15 yrs exp just resigned from my current role & moving West to East.

Contracting market looks very lucrid and fluid.

Thanks
Magooly

Graham

I don't think there's any agencies left that will pay a sole trader. You're probably better off investigating umbrella companies if you're not ready to start your own Limited company.

Check list:

1) Find contract
2) Register with umbrella company
3) Work
4) Get paid

L.Jenkins

On top of what Graham said, be aware of what you will more than likely have to pay as a Contractor. Research Umbrella Companies thoroughly, as they will charge an Admin fee for doing your weekly or monthly pay.

Know what the going rate is for a Contractor with your experience is. With 15 years experience, you may be looking at 400/450+ per day, but you will pay for everything. i.e. PAYE, Employer and Employee PRSI, USC etc, plus your own pension contributions and health insurance.

magooly

Thanks guys exactly the info I need.

14ned

Itzy wrote: »

On top of what Graham said, be aware of what you will more than likely have to pay as a Contractor. Research Umbrella Companies thoroughly, as they will charge an Admin fee for doing your weekly or monthly pay.

Know what the going rate is for a Contractor with your experience is. With 15 years experience, you may be looking at 400/450+ per day, but you will pay for everything. i.e. PAYE, Employer and Employee PRSI, USC etc, plus your own pension contributions and health insurance.

Also adding on top of this addition, it's well worth going umbrella for the first year or two until you learn the ropes and decide if contracting is for you (and your wife!). Expect after all the fees, pension contributions and taxes to not be earning more than as a permie. If the lifestyle suits you, take a basic accounting and a basic payroll course and self incorporate, doing your own bookkeeping except for the end of year accounts, and avoiding the need for expensive professional services most of the time. This will reduce your overheads by at least 20%, and give you much more control over your cashflow which you'll need to manage assiduously. It's only then you'll start to see an appropriate income bump representative of the greater risk you're taking on as a contractor.

If you're around Dublin, make sure you look into the tax saver scheme for public transport, basically the government will give you a chunk of any public transport costs back to you. Also look into the Cycle to Work scheme, it lets you buy a bike before all tax personal and company. And always remember training courses leading to a recognised qualification relevant to the business are deductible, I've been using this to take a third undergrad degree with the OU in Pure Maths.

Finally if you do self incorporate and your partner has any form of past work experience in bookkeeping or admin it can make sense to make them an employee of your company so the company's income can be more efficiently spread between you. You need to be earning a fair whack, or be unmarried, before this makes tax sense. This is definitely an area you need an Accountant to advise upon.

Oh and one more item, always take your holidays after a contract ends. You won't get vacation entitlements like permies, so you need to forgo earnings and the very best time is straight after a contract. It also usually means you can pick up off season villas somewhere warm and sunny for cheap cheap, the only problem is taking the children out of school mid term.

Niall