Is Contracting worth it? - What do you thinK?

[ancient]

Given the overhead's of contracting, e.g. IR35, employer's NI, Accountants, the loss of promotion, PI Insurance, Pensions; The gap between assignments; travel expenses; insecurity etc.

Do current rates reflect appropriate risk and reward?

Does this force people to sign-up with tax scams just to make it viable etc;

The contract market - does it offer a long-term future?

Have they screwed us down to the lowest level?

Curious to know what people think?

[SupremeSpod]

Given the overhead's of contracting, e.g. IR35, employer's NI, Accountants, the loss of promotion, PI Insurance, Pensions; The gap between assignments etc.

Do current rates reflect appropriate risk and reward?

Does this force people to sign-up with tax scams just to make it viable etc;

The contract market - does it offer a long-term future?

Curious to know what people think?

If you can't stand the heat go and work for your local council!

[ancient]

If you can't stand the heat go and work for your local council!

You did not answer the question, as long as people employ people like you - I know I have a future

[SupremeSpod]

You did not answer the question

Of course I think it's worth it! It's the ability to turn round and tell the client that you won't be in the office because you're off playing golf that makes it so worth while.... That and the fact that you earn at least five times more than the manager who's supposed to be "supervising" you...

Spod - In "Oh, Yessssss!" mode

[malvolio]

Not if you think it's not worth the bother.

IR35 is avoidable. NI is largely avoidable. Accountants are free, if not actually a negative cost item. PI is not really a necessity and costs around one day's charges per year. Pensions have always been a personal issue, permie or not, unless you fancy the high life on £102 a week. Your rate is based on 35 weeks a year working. Only idiots base their income on tax scams.

Not really thought this through, have you?

[ancient]

In terms of contracting, I work on 45 weeks per year - earned income and then relate that to the potential permie income.

Of course with due regard for costs.

Accountants are not free, they typically average £1000 p.a

NI is not avoidable for those who do not claim a spouse and are on IR35

[Francko]

Not if you think it's not worth the bother.

IR35 is avoidable. NI is largely avoidable. Accountants are free, if not actually a negative cost item. PI is not really a necessity and costs around one day's charges per year. Pensions have always been a personal issue, permie or not, unless you fancy the high life on £102 a week. Your rate is based on 35 weeks a year working. Only idiots base their income on tax scams.

Not really thought this through, have you?

We all agree on the pension which is an illusion. However, I do tend to agree that most of the current rates are not worth going contracting unless you prefer it as a specific lifestyle. Or that is depending on how much your income can be as permanent. However, in the last 2-3 years there was a dramatic drop in contract rates everywhere around europe, unless it happens that you were with the client previously and the client wanted to keep you even if you are clearly over the market rate. LB points out that the client might increase your rate 300%. This certainly can happen but what are the odds of that? I would think that it's good to jump the contractor wagon once you have secured a decent contract first but to flexible if the rate isn't that great. I think very few people are naturally born contractors or permies, and most of us are someway in between, therefore we have to make ponderate decisions.

Btw, is "lasciate ogne speranza, voi ch'intrate" (although modern italian would translate as "ogni speranza"). Jeeezzz.... 3 years of that crap we had to stand.

[ancient]

A big overhead is if you need to be away from home, where you live can be a big factor.

Rates tend to be commodity, but if it costs £100 per day in accomodation and travel this can make your location a big disadvantage.

Agents tend to set the rate, normally fixed up-front, but there may be occasion when the Client will strech for the right person.

I wonder have people gone in at an agent rate and tried to up it during the interview? e.g. played hard to get.

For those of us living north of Watford it can be quite tough.

For those on a short train ride to London with a wide choice of employment the overheads are probably less.

[Fungus]

Given the overhead's of contracting, e.g. IR35, employer's NI, Accountants, the loss of promotion, PI Insurance, Pensions; The gap between assignments etc.

Do current rates reflect appropriate risk and reward?

Does this force people to sign-up with tax scams just to make it viable etc;

The contract market - does it offer a long-term future?

Curious to know what people think?

It depends.

Some contracts are down to £30 per hour and on that rate it's not worth it. At £35 per hour it becomes well worth it even under IR35. At £40 per hour you are laughing. Bear in mind that if you work overtime, you get paid, unlike many permie jobs. Also, I find the work more interesting, and oddly enough I am treated with respect, whereas as a permie I was often treated as dirt. I am on my third contract. The first lasted 1 year, the second lasted 5 years. I got the second before the first ended. I started the third contract one week after leaving the second. I had originally planned to spend a few months looking, and enjoy the holiday. Oh well. Maybe I'm lucky, but I'm not unusual in my experience. As long as you are competent, and have useful skills, you should be okay. BTW In my experience as a permie I was told that I was not that good, and did not know much. As a contractor I am told that I am very capable and skilled. Go figure.

You might be able to avoid IR35 especially if you can do some work at home. An accountant is only £800 per year. Pension contributions from a permie job are not that much.

In terms of job security, my last client was laying off permies, and I worked there longer than many other staff, so the job security thing is often crap. These days many companies treat permies as contractors. In fact some prefer contractors due to flexibility. High and fire according to skill requirements, with no redundancy pay or legal crap.

The only problem is that as a permie you might be able to live near your employer, but as a contractor you will probably have to commute quite a bit, or live in some form of digs.

Oh, and the taxman detests us lot. despite the fact that we perform a valuable economic function. And some permies detest us too. They are sad gets who are jealous but without the nerve to do what we do.

Leif

[Fungus]

Btw, is "lasciate ogne speranza, voi ch'intrate" (although modern italian would translate as "ogni speranza"). Jeeezzz.... 3 years of that crap we had to stand.

Ermm, for the hard of thinking among us, what's this "lasagne egg spaghetti wotsit" business mean?

Leif