Contract v fixed term

[emranio]

I have been contracting for a couple of years now on a decent day rate; the client I am working for wants me until 2020; and wants me on a fixed term contract BUT on a higher rate.

He wants me to advise him on how much increase I would be looking for.

If I were to accept; how much would I need to increase my rate to allow for the loss of expenses, IR 35 (inside), PAYE etc, loss of efficiency etc.

If the client was to place the order on my company and not me directly does that still make it a fixed term contract?

Thanks

[LondonManc]

Calculate an IR35 rate and fill yer boots.

The other thing to consider is that you can no longer claim expenses because the contract is expected to go over two years.

[MrMarkyMark]

Calculate an IR35 rate and fill yer boots.

The other thing to consider is that you can no longer claim expenses because the contract is expected to go over two years.

I believe a yardstick is around 30%, but I don't believe this covers the expenses side.

[LondonManc]

I believe a yardstick is around 30%, but I don't believe this covers the expenses side.

Consider our situations - same location but my expenses are a lot higher due to staying away. That's a personal one and a potential game changer. Either that or it could be a case that, given work is pretty much guaranteed for 3-4 years, I'd relocate for that period.

[MrMarkyMark]

Consider our situations - same location but my expenses are a lot higher due to staying away. That's a personal one and a potential game changer. Either that or it could be a case that, given work is pretty much guaranteed for 3-4 years, I'd relocate for that period.

Very true, which is why it is likely to be 30%+
Also, usually with fixed term you get holidays too, so this needs to be considered.

Not really any rule of thumb to work from, the OP should look at what he would like to get each month and go from there.

[malvolio]

Ermmm; slightly confused chaps...

A Fixed Term contract is one of full employment, albeit with a known termination and no redundancy. Expenses and subsistence are not an option. It will also be salaried so day rate is only an approximation - start with the usual hourly rate x 1000 = annual salary as a starter for ten.

[LondonManc]

Ermmm; slightly confused chaps...

A Fixed Term contract is one of full employment, albeit with a known termination and no redundancy. Expenses and subsistence are not an option. It will also be salaried so day rate is only an approximation - start with the usual hourly rate x 1000 = annual salary as a starter for ten.

I get that bit, but the OP starts talking about "directly against the company", which makes it sound like something different again.

[jamesbrown]

Ermmm; slightly confused chaps....

Yep, something to confirm upfront, as that will influence salary/rate expectations. FTC traditionally means employment, not inside IR35, and that's almost certainly what the client means. Incidentally, interesting article on CUK today about moving from contract to PAYE w/r to risk of IR35 investigation...

[MrMarkyMark]

Ermmm; slightly confused chaps...

A Fixed Term contract is one of full employment, albeit with a known termination and no redundancy. Expenses and subsistence are not an option. It will also be salaried so day rate is only an approximation - start with the usual hourly rate x 1000 = annual salary as a starter for ten.

Errrrm, I know exactly what an FTC is

If I were to accept; how much would I need to increase my rate to allow for the loss of expenses, IR 35 (inside), PAYE etc, loss of efficiency etc.

If you read the OPs post it's quite clear, he realises he will lose the expenses and wishes to try and factor those into his calculation

[chopper]

A Fixed Term contract is one of full employment, albeit with a known termination and no redundancy.

Not so, if a fixed term employment contract means the period of continuous employment goes beyond two years, then the employee is entitled to redundancy pay upon expiry of the FT contract if it is not renewed, just like a 'normal' employment contract.

(I know this, because SWMBO had a series of FTE contracts which took her beyond two years, then her employer made her redundant - i.e. did not extend her FTE. (Whilst she was on maternity leave, and because she was on maternity leave).

She was entitled to redundancy pay, as well as compensation for unfair dismissal.