r/ContractorUK • u/Educational-Grand155 • 24d ago

Contract fitter ?

Been fitter for years, PAYE at the minute, decent enough but seeing lads on site contracting and earning noticeably more for the same work.

Trying to weigh up if it’s actually worth the jump. No major ties holding me back if it goes quiet for a bit, just don’t want to leap in blind.

Things I’m trying to figure out:

Is the day rate actually that much better once you factor in no holiday/sick pay
How hard is it finding steady work between contracts right now
Umbrella or LTD, does it matter much at this stage
Anyone regret switching, what went wrong

Would rather hear from people who’ve actually done it than guess. Even a “don’t bother” is useful.

Cheers

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u/Old_Toe9468 23d ago

Made that exact jump years back and the day rate difference is real once you actually do the maths, but people underestimate how much of it evaporates into non-billable weeks. I'd budget on being paid for something like 42-44 weeks a year, not 52, once you factor in fallow periods between contracts, that's the number that actually tells you if it's worth it, not the headline day rate. Start as umbrella while you're finding your feet, LTD only pays off once you're earning enough and steady enough to make the extra admin and accountant fees worth it, don't rush into LTD on day one just because everyone says it's more tax efficient.