Polite way to turn down employment offer?

[wc11a]

Let's say I have been freelancing for a UK business (and a couple of other firms) providing various consulting services, some of which are for their own business, some for end clients.

The firm is trying to establish a longer term commitment with its consultants, essentially by bringing contractors in house.

Whilst I do quite like the work, the employment route is certainly not for me, mostly for reasons about the owners themselves that would be unpalatable for them to hear, and would probably cause a big issue on our current engagement were they aired.

Essentially, I want to maintain the status quo, and give them a tangible reason I am not joining, without having to go near the underlying reason.

Any suggestions very welcome! (for instance, would leaving self-employment to employment cause major tax upheavel, or similar?)

On a related point, another option tabled was to set up a new arrangement where I would charge some sort of retainer and then take a small share in profits (they are a UK LLP) - I am assuming that is likely to fall foul of IR35 and who knows what else, but if anyone can suggest a structure that enables such an arrangement, that would be very helpful.

Thanks

[b0redom]

"Sorry, but I like the flexibility of working through my own Ltd company. I am, of course, more than happy to keep taking your money....."

[prozak]

There is always pressure to convert to permie if you are any good.

Just tell them something about lifestyle, financial goals, flexibility....

Doesn't really matter in the end. They will either get to the point of not wanting contractors anymore or will keep you on. That's the whole point of being a contractor.

And yes. there are likely to be tax implications if you have already paid any dividends this tax year.... though that might be less relevent if you always take all your profit regardless of whether it takes you over the Higher Tax Rate threshold.

[oversteer]

"I have multiple clients and so would not be able to commit to you on a full time basis"

[Scrag Meister]

"Sorry, but I like the flexibility of working through my own Ltd company. I am, of course, more than happy to keep taking your money....."

WHS

I was offered a permie role by clientco a month after starting my first contract. Clients like to keep good staff and they see permiedom as that route, rather naive really. I explained that I wanted to keep contracting. Was there for 3 years had another contract and then came back, still contracting :-)

[2BIT]

when I got offered to be made perm for the third time on the same contract by someone I respected and wanted to continue a relationship the only way I could justify refusing was to go through all benefits (not just monetary) one by one and compared to my current status and do a pro-con list, despite a v attractive salary nothing else was more beneficial than the freedom offered by being a contractor

so without making any kind of offer state your current situation and they may realise that they cant better it

[NotAllThere]

Get a tie with the dilbert cartoon that says something like:

"So you want me to do the same work for less money".
"We want you to be motivated by something other than cash"
"What, stupidity?".

I was twice offered the opportunity in my current contract, to go permie. I said I was very pleased to be asked, but it didn't really fit in with my life style goals. They already knew that in Jan/Feb I only want to work parttime so I can ski, so they accepted that. Still here, minting it, five years later.

Partly, it's because my contract with them is based on 2 days per week, + anything extra. The + by the middle of the year, is usually at least 4 days a week. They like the flexibility of having someone who they don't have to have 5 days per week, but can if they want. Suits me as well.