22% Would be OK as long as we were still able to claim travel and such expenses as well.
I think the people who see contractors as getting easy money and just overpaid disguised employees have never contracted.
A few of my friends want to become contractors. I am more than happy to help them and give advice. But I also tell them not to assume it is a gravy train and be prepared for the fact that you will sometimes be without work and will inevitably start feeling the pressure on your rates.
There are two types of Contractor.
1. The Real Contractor
2. The Accidental Contractor
The accidental contractor usually goes back to permie as soon as they can, for whatever reason, be it motivation, ability, security etc. They usually just fell into a contract because they didn't have a permanent role. They have usually left a permie role but not of their choice.
The Real Contractor is one who has decided to take a risk and contract permanently using their skills (including sales skills i.e. interviews) and in my opinion should be rewarded for the risk. They have usually left a permie role by their own choice.
I wonder what HMRC's view is of contractors who have worked for them? I know a few. Do they give them a free pass?