FTCs

[fiisch]

Has anyone ever been tempted by a Full Time Contract (FTC) role? As far as I can ascertain and from comments on these boards, it seems to widely be considered as having all of the drawbacks of contracting and permiedom combined.

I am in a bit of a pickle with my first proper contract (technically my second, but my first contract was accidental after the company couldn't honour a permanent offer) - I am 7 months in and very little work. I've noted the market has picked up recently and I've couple of juicy day-rate contract interviews approaching in London, which ordinarily I'd be very excited about.

I am also at telephone interview stage for a FTC role with a large bank (not HSBC). I am quite keen on the FTC role as 1). It would give me exposure to banking whereas previously I've only ever worked in insurance; 2). It is in a particular niche discipline that I have experience in that is rare to see in an out-and-out contractor role; 3). It is very close to home, with a much shorter commute.

However, I'm not sure if I am genuinely excited about this FTC role, or if the idea of a relatively more secure position in something I am very familiar with is appealing as confidence has been knocked from my current role. Presumably for FTC roles payroll is as per permanent staff, and I'd have no need for my ltd. company?

[GhostofTarbera]

No I have not


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[Anonimouse]

Surely the word you’re looking for is fixed?

[BlackCountryContractor]

Has anyone ever been tempted by a Full Time Contract (FTC) role? As far as I can ascertain and from comments on these boards, it seems to widely be considered as having all of the drawbacks of contracting and permiedom combined.

I am in a bit of a pickle with my first proper contract (technically my second, but my first contract was accidental after the company couldn't honour a permanent offer) - I am 7 months in and very little work. I've noted the market has picked up recently and I've couple of juicy day-rate contract interviews approaching in London, which ordinarily I'd be very excited about.

I am also at telephone interview stage for a FTC role with a large bank (not HSBC). I am quite keen on the FTC role as 1). It would give me exposure to banking whereas previously I've only ever worked in insurance; 2). It is in a particular niche discipline that I have experience in that is rare to see in an out-and-out contractor role; 3). It is very close to home, with a much shorter commute.

However, I'm not sure if I am genuinely excited about this FTC role, or if the idea of a relatively more secure position in something I am very familiar with is appealing as confidence has been knocked from my current role. Presumably for FTC roles payroll is as per permanent staff, and I'd have no need for my ltd. company?

You are correct that you will be on the clientco payroll for FTC (chances are as well it will be a monthly payroll), you will need to put your LTD dormant and sort out the paper work but be warned that it can cause a long headache tax wise if you switch back to LTD during current tax year so think long and hard before you accept the offer if it is given (My 2 pennies are given that the private sector IR35 reforms are around the block as well you might want to make the most of working via LTD before the IR35 blanketing starts next april unless you are taking the view to move back into a permanent role using the FTC as a jump point).

Been FTCer isn't all bad just very different from independant contracting so if you like your freedom been outside of SDC as a LTD then be prepared for a shock when you get treated as a permie.

[jmo21]

It would give me exposure to banking whereas previously I've only ever worked in insurance

Permie money, for a short period? meh.

But this would be the only type of reason I would maybe consider a FTC, and it would only be as a last resort. I'd have to be getting something else worthwhile out of it other than just money.

Even then, I am suspicious about companies that advertise these types of roles. Sure, it might be to fill in for someone of on long term sick, maternity leave etc, but just hire a real contractor to cover the time period and don't try to skimp.

[ladymuck]

FTCs do have a place but, as noted, are often drawn up by companies who want a body but don't want the permie costs (you won't get all benefits a permie does) or the 'hassle' of having an independent thinking contractor.

Be aware of the small print. Some I've heard (not done one myself btw) have a no-break clause. You could be tied in for 12 months with no easy way out.

Do note tax years. If you've drawn any money out of your LtdCo since 6 April, pay it back so your next SATR only has the FTC income on it. Try to make sure the gig doesn't fall into the next tax year if you truly intend going back to contracting.

You'll need to issue yourself a P45 and either keep your LtdCo running or make it dormant (not sure what happens to cash in the bank if you go dormant). Your accountant is key to this aspect.

[fiisch]

Thanks all... I did mean Fixed Term, and you've definitely deterred me.

Judging by the number of roles being recruited for on this particular project, I would guess it's just short-term flexibility rather than specific mat-cover or sickness, and that they're just being tight.

I'm still interested to hear what they had to say if I was offered the next stage - would there be any point turning up to an interview and requesting a normal day-rate contract?

[malvolio]

Thanks all... I did mean Fixed Term, and you've definitely deterred me.

Judging by the number of roles being recruited for on this particular project, I would guess it's just short-term flexibility rather than specific mat-cover or sickness, and that they're just being tight.

I'm still interested to hear what they had to say if I was offered the next stage - would there be any point turning up to an interview and requesting a normal day-rate contract?

None at all. FTCs are offered for either a specific reason, such as having the worker firmly under the company's control (highly advisable for an HR role for example) of because the FD or the HR manager have no idea about contracting and associated risk management (and FTAOD, I've seen both those in action!). I did one FTC when I needed the income, but wouldn't touch one now.

That said, they will become more common, though, as a defence - albeit a spurious one - against the 2020 changes.

[simes]

No.

[GmartSuy]

Only worth it if the experience it would give is valuable in helping you get to where you want to go (or you have no other choice). Aside from that they're a big rip off, you're a permanent employee but for a fixed term (surprisingly not an oxymoron) .
If the money is gonna be tulip i want it to at least be stable.