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Advice on IT contract work

Hey all. This is my first post here. I am currently a network engineer in the British army. However I should be out very soon. I have worked on the building installation and support of several networks all Microsft Based and using CISCO router Switches and VOIP. For my resettlement I am going to do the MCITP qualifications, Comptia Security Plus and CCNA in my own time (I have already done the CCNA Exploration however I need a refresher and need to sit the fficial exam).

I am in touch with an IT recruitment agency who can offer me contract work. However I am just wondering how contract work actually works. I understand I will be self employed, have to do tax returns and my own payments on NHS. Yet how easy is it to find work and what sort of lifestyle can I expect. Obviously being in the army I am told what to do all the time.

Also what sort of certifications are useful. I currently have a foundation degree in Communication Engineering and an NVQ Level 3 in Communication Engineering (Systems). I have eight years experience in the military and hold security level of SC.