I've been contracting for just over 2 years for an IT and Business Services Co. having spent many years working as a Permie Developer for the end Client, a Global Insurance Giant.
In the downturn they are whittling the contractor numbers down by not renewing, cutting rates and in a few cases, myself included, asking people to go 'Permie'.
I don't want to go Permie - I like not having appraisals! More seriously, I'm building up a nice pot in the Company and I don't want to wind it up and take the money out yet for tax reasons.
I know that my rate is lower-middle so with the on-costs of ERNI and 30% employer's pension contribution being Permie would cost them much the same assuming anything approaching a half decent Salary.
I've fobbed them off for about 9 months, but they are now dropping heavy hints that its Permie or nothing - Ie no renewal in March.
It looks like a case of "We want to keep you, but there's only money in the Permie Pot, not in the Contractor pot". Sounds stupid but I've been working in Corporates for 27 years and I know that managers are often hamstrung by directives from on high.
So what to do? I could just give in and become a drone again. There's probably a good 5 years work available. If I do, won't the Revenue start asking questions about 2+ years taking income via a Ltd Co.? (I have IR35 insurance though).
I could play along, try to get a contract elsewhere and if I do, walk away at renewal. This will leave them with a substantial piece of work half finished that I'm doing 80% of. Will they hold this against me?
Another option would be to negotiate a 25/26 hour 3 day week, get them to pay to update my skills and insist that I am permitted to do contract work for other clients during the other 4 days now and again. What's the chance of them agreeing to this? They don't have many developers left with the PC and Mainframe skills relevant to the site so I do have some leverage.
NB I am in the fortunate position to be able to take employment risks having 12 months living expenses put by.
All opinions, advice welcome.
In the downturn they are whittling the contractor numbers down by not renewing, cutting rates and in a few cases, myself included, asking people to go 'Permie'.
I don't want to go Permie - I like not having appraisals! More seriously, I'm building up a nice pot in the Company and I don't want to wind it up and take the money out yet for tax reasons.
I know that my rate is lower-middle so with the on-costs of ERNI and 30% employer's pension contribution being Permie would cost them much the same assuming anything approaching a half decent Salary.
I've fobbed them off for about 9 months, but they are now dropping heavy hints that its Permie or nothing - Ie no renewal in March.
It looks like a case of "We want to keep you, but there's only money in the Permie Pot, not in the Contractor pot". Sounds stupid but I've been working in Corporates for 27 years and I know that managers are often hamstrung by directives from on high.
So what to do? I could just give in and become a drone again. There's probably a good 5 years work available. If I do, won't the Revenue start asking questions about 2+ years taking income via a Ltd Co.? (I have IR35 insurance though).
I could play along, try to get a contract elsewhere and if I do, walk away at renewal. This will leave them with a substantial piece of work half finished that I'm doing 80% of. Will they hold this against me?
Another option would be to negotiate a 25/26 hour 3 day week, get them to pay to update my skills and insist that I am permitted to do contract work for other clients during the other 4 days now and again. What's the chance of them agreeing to this? They don't have many developers left with the PC and Mainframe skills relevant to the site so I do have some leverage.
NB I am in the fortunate position to be able to take employment risks having 12 months living expenses put by.
All opinions, advice welcome.
Comment