Why are more contractors going permanent ?

[Benny Boy]

Why are more contractors now looking for permanent jobs?

Just as I am planning on going contracting this year, all the contractors who I've befreinded over the years (granted, I only know six) are now permanent employees !!!

They indicated that contracts are harder to come by nowadays (recession ?) - but the biggest concern is that working "outside IR35" will become almost impossible, so it's no longer viable to contract. They said that the government are planning on clamping down contracting in a big way and want to make examples on individuals - and that it's one way they can claw back financial losses by attacking "Mr Average". Any of this true or just scaremongering ?

I've heard new teams are being set up to review all new Ltd Co's for sole directors who contract specifically in the business/I.T. arena. Again, true or hearsay ? Are there any stats to support this. I can see the odd "suggested" bulletin on t'internet.

[Sockpuppet]

Depends. Are they proper contractors or people that have done it for a year or two and moved on?

I've been a contractor for 6 years now and there is pretty much no way I could go back to working for someone else, I just don't have it in me.

[cojak]

As SC says, most aren't real contractors. They've either been pushed into it by redundancy or see a fantasy of easy money and no responsibility. When reality hit them in the gob they realise that the life isn't really for them. When a half decent permie job comes knocking they jump at the chance to go back to a life that was simpler and more stable (an illusion but a comforting one for many).

Real contractors will always be around, IR35 or not.

[BrilloPad]

A study of 6 proves nothing. If you toss a coin 20 times the odds of getting a sequence of 5 heads or tails is one in four.

[Old Greg]

A study of 6 proves nothing. If you toss a coin 20 times the odds of getting a sequence of 5 heads or tails is one in four.

The OP wasn't presenting a research paper.

[BrilloPad]

The OP wasn't presenting a research paper.

This thread is not in general.

I never said the OP was presenting a research paper. But the OP suggested a sample of 6 out of tens of thousands to be statistically significant.

Having said that I reckon more contractors are going permanent. No doubt following the lead I set in 2009 after 21 years. Plus the government has declared war on contractors and is not going to let up until the numbers are very very much reduced. Once the NTRT bunch are picked off they will target the rest.

[slogger]

This thread is not in general.

I never said the OP was presenting a research paper. But the OP suggested a sample of 6 out of tens of thousands to be statistically significant.

Having said that I reckon more contractors are going permanent. No doubt following the lead I set in 2009 after 21 years. Plus the government has declared war on contractors and is not going to let up until the numbers are very very much reduced. Once the NTRT bunch are picked off they will target the rest.

things are very bad in the market - granted you may have good contacts built up over time or exceptional/rare skills -- however contract rates in my field are about 25% lower at least than 2008 - in fact I have ex colleagues who are very good that have been out of work for almost a year - also getting calls from people on the bench who last time they worked charged 500-750 per day - now saying they'd be happy with 200 per day - unable to get even that.

Contract rates I think lead the market with permy rates lagging a bit behind (I've always said we contractors are the canaries in the mine!) - so I can see the attraction for a lot of people going permy as the salaries there still seem to be ok .. some people I know just view permy as a different type of contract ... having said that I'd go for ten contracts - if you get more than a few of them in less than a month or so then go for it!!

[Maslins]

I think a lot of people have gone into contracting over the last few years who shouldn't really have.

Two main reasons IMO:
1) Client/employer wants it as in their mind it makes them immune to employment law, protects against sick pay etc etc.
2) The person has an idiot mate who after a few shandies bragged about how little tax they paid by claiming all their meals, and their holidays as "training trips", buying computers for their entire family through the company etc etc.

After a year, they get into trouble (mainly because despite claiming they understand, the temptation to take out money which should be set aside for VAT/CT is too great), they go back to the nice safe world of permanent employment.

No harm in it, they'll learn a fair bit along the way...I just wish people did more research about what they're getting themselves into before becoming a contractor.

[moggy]

I think a lot of people have gone into contracting over the last few years who shouldn't really have.

Two main reasons IMO:
1) Client/employer wants it as in their mind it makes them immune to employment law, protects against sick pay etc etc.
2) The person has an idiot mate who after a few shandies bragged about how little tax they paid by claiming all their meals, and their holidays as "training trips", buying computers for their entire family through the company etc etc.

After a year, they get into trouble (mainly because despite claiming they understand, the temptation to take out money which should be set aside for VAT/CT is too great), they go back to the nice safe world of permanent employment.

No harm in it, they'll learn a fair bit along the way...I just wish people did more research about what they're getting themselves into before becoming a contractor.

+1

[Contreras]

A study of 6 proves nothing. If you toss a coin 20 times the odds of getting a sequence of 5 heads or tails is 45.84031%.

FTFY.