Why contracting is good only in the UK-US?

[Francko]

I always wondered why contracting is only a good option mainly in UK-US. Surely you can contract in Europe for 5 quid an hour like Milan,but mainly the best options are permie jobs (sure there are some good contracts but they are few and politically distributed) as contracting is often considered as a temporary choice and not a lifestyle one.

Why contracting is so difficult to accept as a career and life choice in most of the world (and that is even harder to understand in countries with more liberal job market laws like Switzerland)?

I am not even sure if we can include the US too as even there, there doesn't seem to be so much difference between permie and contractors moneywise.

In many countries you also pay more taxes as a contractor than a permie (i.e. this is not meant as a suggestion for the UK Tax Office) which makes contracting an even less appealing alternative.

[milanbenes]

Franko,

have you ever noticed how main Brits are contracting on the mainland ?

Milan.

[Francko]

Franko,

have you ever noticed how main Brits are contracting on the mainland ?

Milan.

But not for the money. If you manage to be a little impartial (and that's very hard for you so I doubt you can make it), you may observe that as a SAP specialist in the UK you would be able to get 5-600 pounds a day without a strong political network. Add to this that taxes as a contractor are lower than a permie job then it is easy to calculate. In the mainland you get similar salaries for permanent positions but you are not going to get 800-1000 euros a day (and you end up paying higher taxes than in UK).

[sasguru]

I always wondered why contracting is only a good option mainly in UK-US. .

It's because of the entrepreunerial, risk-taking, free-market mentality that (used to?) prevail in the Anglo-Saxon countries and which is now being sadly diluted by New Labour goons, most of whom have no understanding of the crucial importance of technology.

HTH.

[milanbenes]

Franko,

you are the master and you must be correct.

Milan.

[darmstadt]

Depends what market you're in...I've just signed another extension and within the last 30 minutes had 2 phone calls for other projects to start immediately (one at the same place where I already am.) I earn a lot more as a contractor on the continent that I would as a permie, I pay a heck of a lot of tax but I claim even more back and I definitely earn more than I would in either the US or the UK. In fact I actually also work for a US company as their EMEA person and although things have gone quiet they have now contacted me to do more services for them both remotely and over there. This time however, I'm going to charge them a lot more (so it could be very beneficial to the M5 I want to buy shortly)

[zathras]

I always wondered why contracting is only a good option mainly in UK-US. Surely you can contract in Europe for 5 quid an hour like Milan,but mainly the best options are permie jobs (sure there are some good contracts but they are few and politically distributed) as contracting is often considered as a temporary choice and not a lifestyle one.

Why contracting is so difficult to accept as a career and life choice in most of the world (and that is even harder to understand in countries with more liberal job market laws like Switzerland)?

I am not even sure if we can include the US too as even there, there doesn't seem to be so much difference between permie and contractors moneywise.

In many countries you also pay more taxes as a contractor than a permie (i.e. this is not meant as a suggestion for the UK Tax Office) which makes contracting an even less appealing alternative.

I think it might have something to do with the EU being much more Left Wing than the UK and US. (Even after 10 years of a Labour government which had to become more right wing to get elected). In the EU their is the general belief that workers need protecting. Look at what France has done to help it's farmers - the CAP would not exist if not for the backing of France to keep it alive! Actually speaking about French farmers look what they do when their more mollycoddled lives are threatened.

Although parts of the US were ruled at times by France, Spain and Holland it was eventually ruled by the UK until the War of Independence and it picked up the UK attitude rather than the Continent. Maybe things would be different had France come in on the side of the Confederacy during the Civil War.

[milanbenes]

Darmstadt,

will you get it from BWM Dreieich ?

Amazing showroom, largest one in Germany save for the one in Munich. I've never seen so many BMers indoors in one place.

Second hand they give 12 months warranty and the garage is owned by BMW and not a franchise and the service is fantastic.

Milan.

[Bagpuss]

Since the Microsoft case for employment rights, the US isn't a good place to contract. Most companies are worried a contractor staying longer than 1 year will be suing for employment rights.

[Old Greg]

I think the question should be: why is it more beneficial to be a contractor in the UK than elsewhere? I think the answer is that the government has not worked out how to tax our income as earned income.