It makes more sense to call it 'full-time' not permanent, because nothing is permanent and everyone is just one payment in lieu of their notice period away from being unemployed.
A simplified answer: if money is your thing, then contract. If you are after career growth, permanent, ofcourse plenty of exceptions to this. A lot of people do a bit of both in their careers. Start with perm, get some experience, then contract for a while, make some real money, then go back to permanent and really focus on career development.
This was super interesting, I've been a developer in the UK for a little over 4 years as a permanent employee at one company, however once I reach 5 years I'd like to move on to either a new company and try to get a fully remote position or look into what other options I could potentially go for. I'm not sure if I'll have enough experience to go into contracting, however I value flexibility over salary so it's definitely something I'd like to get into if possible. Thanks for the video! 😁
Great video. Let's say my limited company is based in Europe, not in the UK. Is it possible to do contracting with a limited company created outside the UK? And does that have any effect on the taxes or on the daily rate? Thank you in advance.
Just found your channel bro, im from east London, 8 months into my learning journey, python, its going well, learning sql, db, and api's, then gonna start applying for jobs in 4 months, all my projects gonna include front end and back end with a database, using crud, authentication, security etc, so I look impressive even tho im a newbie 😂 gotta make that money so I can travel the world
silly question but is it only worth it for the workers with the greatest skills and the latest technology? Or can anyone in IT even a non-senior dev / qa make more money as a contractor
Would be better of using a self-employed tax app instead than hire an accountant? Thanks for this video. And I look forward to watching more videos of yours.
Thanks for watching! I don't actually have much experience using a self employed tax app, but that could possibly be an avenue. There are a few things that do happen throughout the year such as filing VAT & Corporation tax, year end accounts filing and so forth, so my understanding is someone may still have to do this, so it may be beneficial still having an accountant for these purposes OR of course learning what would be required to do this yourself (which unfortunately, I have no experience here so I can't comment)
@@wallywild5088 contractor doesn't get paid when they are not working, also no pension insurance etc, these are all hidden cost. Companies like Google and Facebook can easily pay more than contracting income
@@zhongyuanzhang5611 If you’re a contractor, you’d take all these things into consideration. Some people have private pensions or other ways of setting themselves up for retirement
Hi Gerrone, great video. Is it possible to be a contractor via your own limited company whilst being employed full time somewhere else? Provided your full time job is fine with it?
Thanks for watching! Yes that's fine, provided your employer is fine with it as outlined in your employment contract (if in doubt, definitely ask them). With that said, when it is time to do your self assessment, you will just have to declare your earnings and tax already paid from your permanent (either to your accountant or bear this in mind if filing it yourself). It is handy to keep payslips in that case.
5:04 what is dividends? How many dividends can you take out? Do you get taxed on dividends? If you use umbrella company can you pay yourself minimum salary?
I will be staying in d UK periodically 4mnths every visit then back to Nigeria. Am a .net developer. Is it possible I always GT a contract job in this 4mnths and cn u direct me to where I can check. Thank you for the video
Hi Ryan, thanks for watching. I have an accountant. Personally, I don't have any experience trying to do accounting myself, but despite that I probably wouldn't recommend doing that yourself since they are various bits of tax documents, administration to HMRC that is best for the professionals to do and can have consequences for doing incorrectly. I use a company called CRUNCH to do my accounting, which I definitely recommend in terms of the ease for inputting expenses, tracking sales and having a running total of taxes you need to pay. crunch.co.uk/referrals/?c2c=pragmatt
@@gerrone1.061 Thanks for the reply. Really good video by the way. There is not a lot of content available on this topic so it would be good to see more videos. Yes there does seem to be a lot of room to make a mistake, probably best to leave it to the accountants as you say.
Thanks for watching! It really depends. Generally at contractor level (at least for software development) they expect you to be at roughly a senior level and to generally hit the ground running, so potentially around 4-5 years exp, but that is a very roughl guideline. It could lower, depending on your employee history or if you have sought after skills in particular area. I hope that helps!
Good question. Yes the transition to inside ir35 contracts does effect this. It does mean a lot more contracts will force you to be paid regularly as if you were an employee (and taxed at source). As opposed to using your own limited company (meaning you can save on tax by paying yourself dividends). The good news is that some companies are offering some higher rates (at least in London) to make up for this.
There is not much special to be done to transfer from perm to contracting aside from setting up a company and potentially using an accountant. I wl try and elaborate on this with a future video! Thanks for watching.
You can also invest in a personal pension with a provider like Vanguard. But honestly the savings in tax you’ll earn by retirement are far more beneficial provided you don’t just waste it and invest it into property or savings during your working life
You can also invest in a personal pension with a provider like Vanguard. But honestly the savings in tax you’ll earn by retirement are far more beneficial provided you don’t just waste it and invest it into property or savings during your working life
Interesting. How much demand is there currently for contractors as opposed to full-time PAYE staff? How do you go about / where do you find these opportunities?
Hi, thanks for watching. You can indeed work remotely while being a contractor. Since the pandemic this is of course happening a lot more (with the potential of more remote contracts when things move closer to normal). Remote work only shouldnt affect this, but on the whole at least in London, contract rates are down a little this year.
That question cannot be answered. What you need is to pick a language or a selection of languages you enjoy doing and improve your skills in it then apply for the job with those languages you're comfortable with.
It makes more sense to call it 'full-time' not permanent, because nothing is permanent and everyone is just one payment in lieu of their notice period away from being unemployed.
A simplified answer: if money is your thing, then contract. If you are after career growth, permanent, ofcourse plenty of exceptions to this. A lot of people do a bit of both in their careers. Start with perm, get some experience, then contract for a while, make some real money, then go back to permanent and really focus on career development.
Great video, very insightful thank you
This was super interesting, I've been a developer in the UK for a little over 4 years as a permanent employee at one company, however once I reach 5 years I'd like to move on to either a new company and try to get a fully remote position or look into what other options I could potentially go for. I'm not sure if I'll have enough experience to go into contracting, however I value flexibility over salary so it's definitely something I'd like to get into if possible.
Thanks for the video! 😁
Hey how did you got your first job in uk.I have experience in India ,but not getting any calls here, I am on dependent visa
Great video.
Let's say my limited company is based in Europe, not in the UK.
Is it possible to do contracting with a limited company created outside the UK?
And does that have any effect on the taxes or on the daily rate?
Thank you in advance.
I'd love to know the answer to that question
Are you working in the UK?
Good video. I'm in Canada, but the same applies here.
Just found your channel bro, im from east London, 8 months into my learning journey, python, its going well, learning sql, db, and api's, then gonna start applying for jobs in 4 months, all my projects gonna include front end and back end with a database, using crud, authentication, security etc, so I look impressive even tho im a newbie 😂 gotta make that money so I can travel the world
silly question but is it only worth it for the workers with the greatest skills and the latest technology? Or can anyone in IT even a non-senior dev / qa make more money as a contractor
Would be better of using a self-employed tax app instead than hire an accountant?
Thanks for this video. And I look forward to watching more videos of yours.
Thanks for watching!
I don't actually have much experience using a self employed tax app, but that could possibly be an avenue.
There are a few things that do happen throughout the year such as filing VAT & Corporation tax, year end accounts filing and so forth, so my understanding is someone may still have to do this, so it may be beneficial still having an accountant for these purposes OR of course learning what would be required to do this yourself (which unfortunately, I have no experience here so I can't comment)
Most accountants that specialise in contractors will also provide an app.
fantastic vid!!!
Hey, great video! How are you finding the market atm, the video was recorded nearly 2 years ago and I wonder if anything has changed since then?
Very good question
You can easily make a lot more money with great benefits in big tech companies compare to cotracting.
How so?
@@wallywild5088 contractor doesn't get paid when they are not working, also no pension insurance etc, these are all hidden cost. Companies like Google and Facebook can easily pay more than contracting income
@@zhongyuanzhang5611 assuming you can "easily" get a job at Google and Facebook
@@paulis4u i think so
@@zhongyuanzhang5611 If you’re a contractor, you’d take all these things into consideration. Some people have private pensions or other ways of setting themselves up for retirement
Hi Gerrone, great video. Is it possible to be a contractor via your own limited company whilst being employed full time somewhere else? Provided your full time job is fine with it?
Thanks for watching!
Yes that's fine, provided your employer is fine with it as outlined in your employment contract (if in doubt, definitely ask them).
With that said, when it is time to do your self assessment, you will just have to declare your earnings and tax already paid from your permanent (either to your accountant or bear this in mind if filing it yourself). It is handy to keep payslips in that case.
@@gerrone1.061 thank you for your reply!
If your a contractor you don’t get paid bonus, have to pay accountant fees and insurance😇.
EveryOne Situation is different, there are pro and corns to both of these, but if you get a good contract then account fess and insurance is nothing.
5:04 what is dividends? How many dividends can you take out? Do you get taxed on dividends? If you use umbrella company can you pay yourself minimum salary?
Because of ir35 is it still worth doing IT contracting in London? Some contractors have said no.
How do you find your first contacting rate? I'm a senior developer and wondering how much I'm worth factoring in pension, holiday etc...
I will be staying in d UK periodically 4mnths every visit then back to Nigeria. Am a .net developer. Is it possible I always GT a contract job in this 4mnths and cn u direct me to where I can check. Thank you for the video
Does those two amount listed are both in net/ gross, or only the contractor one is in gross?
Do you have an accountant or do you handle all of the accounting yourself (For a limited company)?
Hi Ryan, thanks for watching.
I have an accountant.
Personally, I don't have any experience trying to do accounting myself, but despite that I probably wouldn't recommend doing that yourself since they are various bits of tax documents, administration to HMRC that is best for the professionals to do and can have consequences for doing incorrectly.
I use a company called CRUNCH to do my accounting, which I definitely recommend in terms of the ease for inputting expenses, tracking sales and having a running total of taxes you need to pay.
crunch.co.uk/referrals/?c2c=pragmatt
@@gerrone1.061 Thanks for the reply. Really good video by the way. There is not a lot of content available on this topic so it would be good to see more videos.
Yes there does seem to be a lot of room to make a mistake, probably best to leave it to the accountants as you say.
Music's too loud to hear your words :(
How many years experience do you think it takes to get to contractor level?
Thanks for watching!
It really depends. Generally at contractor level (at least for software development) they expect you to be at roughly a senior level and to generally hit the ground running, so potentially around 4-5 years exp, but that is a very roughl
guideline. It could lower, depending on your employee history or if you have sought after skills in particular area.
I hope that helps!
@@gerrone1.061 Thank you Gerrone. Great channel
Contracting still alive and kicking with the whole ir35 thing going on?
Also to add on to this how would one transition into contracting from perm?
Good question. Yes the transition to inside ir35 contracts does effect this. It does mean a lot more contracts will force you to be paid regularly as if you were an employee (and taxed at source).
As opposed to using your own limited company (meaning you can save on tax by paying yourself dividends).
The good news is that some companies are offering some higher rates (at least in London) to make up for this.
There is not much special to be done to transfer from perm to contracting aside from setting up a company and potentially using an accountant.
I wl try and elaborate on this with a future video! Thanks for watching.
@@gerrone1.061 p
What do you do as a contractor to make sure you get good high pension when you retire?
You can also invest in a personal pension with a provider like Vanguard. But honestly the savings in tax you’ll earn by retirement are far more beneficial provided you don’t just waste it and invest it into property or savings during your working life
You can also invest in a personal pension with a provider like Vanguard. But honestly the savings in tax you’ll earn by retirement are far more beneficial provided you don’t just waste it and invest it into property or savings during your working life
Interesting.
How much demand is there currently for contractors as opposed to full-time PAYE staff?
How do you go about / where do you find these opportunities?
Guy made this good vid and dipped 😂
90k vs 625 daily rate?
Can someone work as a contractor while working remotely, and is that gonna affect the wage?
Hi, thanks for watching.
You can indeed work remotely while being a contractor.
Since the pandemic this is of course happening a lot more (with the potential of more remote contracts when things move closer to normal).
Remote work only shouldnt affect this, but on the whole at least in London, contract rates are down a little this year.
@@gerrone1.061 thanks for the fast reply, that was helpful
Sort out the audio, it’s like your talking to each ear in turn
hello im 16 years old and starting a computing course in college. Which coding language is it worth learning.
Python
Rust
Hey bud, hope your college course is going well. So the best languages to focus and practice on are html, css, javascript and Php
That question cannot be answered. What you need is to pick a language or a selection of languages you enjoy doing and improve your skills in it then apply for the job with those languages you're comfortable with.