Re: OT: Becoming an IT Contractor

["Ian Lowe" <ian@xxxxxxx>]

Most important thing, Paul:

Consider your own intentions. If you wish to become a contractor for
flashing pound sign reasons, I would advise strenuously against it.

If you see it as the first step to building an IT consultancy company, then
go for it.
We are coping well with the current market, and are building the company
nicely. I think this is to do with very cautious growth, and identifiying
niches which are just too small to interest the big Five.

My suggestions:

a) get a good accountant. We can personally recommend the Business Manager
Service www.manager.co.uk as providing a first class service which can grow
with you at a very reasonable rate. (mention me, I get vouchers towards a
bunjee jump or such like)

b) Be broad based in your skills. Niche markets is where you make the
really
big bucks, but thats also where you don't work for an extended period, or
have expensive re-training if a product falls from favour.

c) A Simple Rule: Inland revenue are idiots, Customs and Excise have
serious
teeth. You can be somewhat cavalier with IR, but don't be a single day late
in paying your VAT return, unless you like being intrusively audited.

d) Be Honest. I have a contractor friend who narrowly missed a jail
sentence
because he was somewhat cavalier with expenses, and put a stack of personal
stuff through the company. DO NOT *EVER* take as gospel what another
contractor says can be treated as a company expense, thats what you pay the
accountant for.

e) Get PI and Employers Liability insurance. Employers Liability is a legal
requirement, and is a commonly applied test by IR to determine whether you
are a Tax dodger or a businessman.

hope that lot helps ;)


Ian

----- Original Message -----
From: "Paul Smith" <wheelbarrowhandle@xxxxxxx>
To: <ukha_d@xxxxxxx>
Sent: Thursday, September 13, 2001 4:42 PM
Subject: [ukha_d] OT: Becoming an IT Contractor


> People,
>
>             I believe that several of you are contractors and I am
> looking to become one. I have over ten years in IT and wonder what's
the
> way to go about it.
>
> Any Pointers would be great.
>
>
> Paul
>
>