Have a permanent IT job and want to go into contracting advice

[Purpleraindrops]

So I'm fed up with permanent IT job and want to try contracting as I have heard you earn more money....what to I need to think about? What are pros and cons from experience? Do you actually earn more money?

Do I have to set up my own company? It is just that all contractors I've met have their own companies.

I have been an IT contractor for almost 7 years (although had a break to have my wee boy and finding it incredibly difficult to get back in to the contracting market).

It depends on what area you work in - I am a business analyst working predominantly in the finance sector - I reckon I earn about 3 times what I would as a permanent employee, although without any of the benefits, so you have to think about setting up your own pension (or at least make sure you think about providing for your retirement).

I started working through an umbrella company to make sure the contracting lifestyle suited me, and then within a year set up my own limited company.

You also need to think about the availability of jobs in your area, and would you be willing to move or work away if that was required to secure your next contract.

Feel free to message me if you want any more info. I love being a contractor, and I am a much happier person being removed from the office politics!

I don't work in IT but am a contractor too. I'm still using an umbrella company at the moment but plan to go limited soon. Pros - flexibility in terms if taking time off; you just don't get paid, much less office politics although still have to be aware of some; will also depend on the level you are working at, variety of experience, quicker to be taken on as if you are no good its easy to get rid of you.

Cons - not part of the team which can feel a bit lonely at times, no sick pay, holiday pay, pension etc so you will need to have a plan for that.

I would have a chat with some agencies about what day rates you can expect and build up some savings before taking the plunge.

It's not like it was 10-15 years ago, particularly before IR35, but there are jobs about, and the rates can be good, particularly if you're happy to go into London and work in banking.

Check which skills are going, and how that matches your experience. If you're in IT, not only do you need to consider the lack of pension, sick pay, etc, but you'll probably have to keep your skills updated and learn new things that come in, which can easily be £2500 - £3000 for a week's training. (Does depend a bit on what you do.)