Every day I enjoy my independence as a free-lance consultant. For me personally there are more advantages than disadvantages, even though times can be tough. A day not worked is a day not invoiced. But at least I do not have to keep track on the number of holidays that I am allowed to have annually.
Certainly, free-lance consulting is not for everyone. It sometimes can be a very solitaire affair. You never really belong to a group. You do meet a lot of great people, but somehow they never really become friends. Probably due to the fact that 'out of sight is out of mind' does apply in most cases.
Also travelling can be a blessing or a curse. Still I remember the first business trip to Paris' La Defense area. It has been many years ago, so the carbon footprint issue was not on the agenda. So no explanation was required why I took a return flight between Eindhoven and Paris every week for several months.
Airports can be very exciting. There are a lot of things to see and to explore. Therefore I was quite surprised to notice so many people who seem to be bored. But quickly I did join them, as the novelty of air travel quickly becomes as stimulating as taking a bus.
When you ask what is on a free-lance consultant's mind, you will not be surprised that it is somehow relates to money. That is why amongst ourselves we resort to discuss whether to be part of an umbrella organization or to do business via your own limited company. For me the decision was quite clear. Although you tend to pay more tax when offering your services through a limited company, it does have my preference.
Main reason within the UK for choosing the 'umbrella' route is avoiding the IR35 legislation. IR35 exists to find and prosecute free-lance consultants who try to avoid paying tax. The 'umbrella' idea is to give you hardly any salary and only live on dividends. So the income tax payments become neglectable. You make yourself more vulnerable when choosing to work via an umbrella organization. It has to be mentioned that hardly any 'umbrella consultants' have been successfully charged with avoiding tax. To me it looks like a Tom and Jerry game, having the government to play the role of Tom. And as in the cartoon, just ask yourself the question how often Tom is considered the winner.
But I rather live on a modest salary though my own limited company and avoid the entire IR35 bonanza. True, I pay more income tax than other colleagues. That does not bother me. A rather have a clear conscience.
Regarding money, a lot of people see free-lance consultants as “the rich as infamous”. It is true that some drive in the latest sports car and show off their hot designer clothes. But it makes more sense to live below your means. All entrepreneurs are aware that ‘cash is king’. Especially in this economic climate it shows that saving money during ‘the good years’ is far more important than trying to keep up with the Joneses. Building a financial buffer allows you to focus on personal development when there are hardly any assignments available.
That brings me to one specific disadvantage when being on your own. You do not have an organization that can assist you in learning new skills. My SAP SD, MM and FI certifications were done whilst still employed at a large Dutch consultancy firm. Also this company was able to give me access to the SAP training system.
When on your own, you quickly find out that 'learning on the job' becomes the norm when you want to add additional skills to your belt. It certainly is not my preferred method of acquiring knowledge. Therefore I was dreaming of my own SAP sandbox system as a present that I can unwrap under the Christmas tree.
Luckily, after almost 10 years of waiting, an UK company called 'SID' allows me to have my own SAP client. It is a copy of the official SAP demo system. Now I have the opportunity to use my certified skills to set-up my own fictitious company and demonstrate my existing and newly developed skills.
Now I pretend that I am involved in configuring a SAP system for the company called "Foxy Cola". My aim is to take full advantage of standard SAP functionality. And you can stay up to date with my adventures when you follow my blog.
Regards,
Isard Haasakker.
Interested in my Foxy Cola prototype progress report?
Visit my website:
http://www.notiegeneration.eu/category/rnd/rnd-progress/
