Just been offered to go perm Just been offered to go perm
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  1. #1

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    Default Just been offered to go perm

    Hi

    I work for a large company in the City, not a bank.
    They have dev team of around 70 about 50-70% are contractors.
    I've been contracting here since 2012. Probably the 2nd longest other is a QA.
    Risky but I live 5 mins away so pushed it.
    Currently on 460/day.

    Contract is up in two weeks.
    Been offered extension but only till March so has any contractor that renewed recently.
    I asked for pay rise of 480/day.

    As I left the office the two days ago I was called in by my bosses and they explained theyre investigating IR35 and what to do next april and said one option, because I've been here so long..would I be interested in going perm.
    I said I'd look into it as I really had no idea what a perm would make in my role.


    But today they officially made offer to go perm.
    I will of course get accountant to confirm everything but thoughts on it?:

    THE OFFER
    Salary: £95K
    Employees Pension contribution of 10%: £9,500
    Discretionary Bonus Scheme up to 20%
    Health Insurance
    Life Insurance (4 * base salary)
    Share Save Scheme - you pay in for 3 years then can buy company shares fixed at rate set today
    Cycle to Work Scheme
    Subsidised gym membership to a range of different gyms

    =====

    Note the agency I go through are moving away from one off contractor roles and moving to projects and only kept me on as legacy
    They told me the client will refuse all new pay rises for all contractor so If I stay contracting it will be at 460/day till mar.

    They even said if client offers perm then I should stop contracting and take it.

    thoughts?
    Oh and my friend works at HMRC and the other night at dinner said they're determined to close IR35 loophole and no its not vague.

    Perm or not perm?
    My accountant has messed up twice recently so thats becoming a pain too.

  2. #2

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    From £460/day to £95k + decent benefits a year? If you like the job and so forth - and it sounds like you do - I'd say that's a no-brainer.

    Only concern would be retrospective IR35 action triggered by your change in status. That's a toughie to evaluate. Perhaps try to get plenty of things in your contract of employent that differ from what you've been doing for the last eight years...

  3. #3

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    Quote Originally Posted by Amanensia View Post
    From £460/day to £95k + decent benefits a year? If you like the job and so forth - and it sounds like you do - I'd say that's a no-brainer.

    Only concern would be retrospective IR35 action triggered by your change in status. That's a toughie to evaluate. Perhaps try to get plenty of things in your contract of employent that differ from what you've been doing for the last eight years...
    Perhaps try to get plenty of things in your contract of employent that differ from what you've been doing for the last eight years
    like what. I would be working on the same projects.

    I'll ask my friend in HMRC about retrospective IR35.

    They did migrate their IT division to a separate company recently and I had a new contract with new company name. But the parent company was the same so doubt HMRC that stupid.

    So i'm guess closing the whole company wold be better. kill all ties to my previous life.
    I dont really have a reason to keep it around.

  4. #4

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    I was also told that although IT managers wanted to keep us it was the corporate lawyers calling the shots.

    They did an assessment of all their contractor on some scale and many failed.

    So if you're in a company now and hear nothing then expect to here something by Mar/April 2020 if not earlier.

    No contract here has been extended past Mar 2020.

  5. #5

    Still gathering requirements...


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    7 years outside + same role as perm = always inside

    HMRC may target you, or you might get lucky. No one knows.

  6. #6

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    I went back through all timesheets and I averaged between
    223 -> 232 days worked over the last 2 12 month periods

    so I average 230 days / year

    So average income
    230 days * £460 = 105,800

    My partners been ill so I had to take time off so would be closer to lower rate in next 12 months.

    My boss was using this
    - 460
    - day rate

    IR35 Calculator - Results (Outside IR35)

    To get the same income via permanent employment would require a salary of £104,667

  7. #7

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    Quote Originally Posted by techsoftlondon View Post
    To get the same income via permanent employment would require a salary of £104,667
    You're being made a blindingly good offer. From a purely financial point of view it really is a no-brainer. It all comes down to how you measure the potential retrospective risk, and nobody here can really answer that for you.

  8. #8

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    Quote Originally Posted by techsoftlondon View Post
    I was also told that although IT managers wanted to keep us it was the corporate lawyers calling the shots.

    They did an assessment of all their contractor on some scale and many failed.

    So if you're in a company now and hear nothing then expect to here something by Mar/April 2020 if not earlier.

    No contract here has been extended past Mar 2020.
    can you get them to run an assessment of you, using the same tool?
    If it says outside then file that as evidence and take the job.

    IMO 460pd to £95k is a very good offer.
    I have a higher day rate than that, and have not been offered that much to go perm when asked.

    Push them for £500 pd for the run up to March, and get as much evidence as possible for your current outside determination.... If you haven't got any evidence (working practices) then ignore everything I've said and sharpen your CV.
    See You Next Tuesday

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    Quote Originally Posted by Lance View Post
    can you get them to run an assessment of you, using the same tool?
    If it says outside then file that as evidence and take the job.

    IMO 460pd to £95k is a very good offer.
    I have a higher day rate than that, and have not been offered that much to go perm when asked.

    Push them for £500 pd for the run up to March, and get as much evidence as possible for your current outside determination.... If you haven't got any evidence (working practices) then ignore everything I've said and sharpen your CV.
    I asked for 480 this week but was told all contractor pay rises to be refused till March been so since last few weeks.. Just confirmed with another contractor that his was refused too recently.

  10. #10

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    Friend just sent me this.
    2018 so not sure if it still counts.

    HMRC signals intent to NOT launch retrospective investigations, in wake of IR35 change | IPSE

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