Independent IT Contracting is a mixed experience. Some of it is good for sure, some of it is just a grind but you can get on with it and other bits are definitely a pain in the ass.
The Good
One great aspect that I never expected from going contracting was the sense of becoming an entrepreneur. Once I set up my own business (Ltd company via Companies House in the UK), it was a fundamental shift in mindset. Like others I'd spoken to, I was struck with the idea that I had full control over my financial destiny. That my time and effort, focus and interests were all now a way to generate revenue and in turn generate a profit. Every £$€ earned and spent was relevant.
No more coasting from pay cheque to pay cheque with the hope of a small percent pay rise each year and possible bonus. No more just paying the bills and tick-tocking along between pay day, bills and whatever saving I could make until retirement. Now it was all to play for. Win or Lose, it was down to me.
The Bad
Along with registering a business of course came some other administrative burdens. Registering for VAT, getting business insurance, hiring an accountant, keeping the books and doing quarterly accounts, annual returns and tax declarations. Sounds like a burden and hey, it's not exactly exciting, but it keeps you in touch with what is really happening in the business. This is absolutely key.
A few things I learned from hard won experience regarding these points:
- Never miss any filing dates for HMRC, ever
- Get an accountant to do your end of year accounts
- Never, ever use any umbrella, loan scheme, 90% income scheme or similar
- Do avoid paying as much tax as possible, legally
The Ugly
If you want to keep earning in IT contracting - you must keep learning. If you don't like the idea of being a lifelong learner, this may not be for you.
If you don't keep learning what's new in the marketplace, what is being asked for in contract job postings and what are the emerging practices or technologies - you're going to be un-hirable sooner than you think. Almost every single time I got into a contract I watched as the world moved on outside of the domain I was working in, which meant I had to sit courses, watch YouTube videos and do hands on practice just to keep up to speed. Even with my ability and focus on this, I still got behind. You cannot sit on your laurels when contracting.
Until next time.
Mark
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