How much rate rise to cover no expensese after 2 year rule kicks in?

[PerfectStorm]

How much rate rise to cover no expensese after 2 year rule kicks in?

Complaining about the 24 month rule is like complaining over the bedroom tax; you're not losing out, you're just winning slightly less than you used to. You're still on top.

[Project Monkey]

This is how your negotiation will go:

Agent: I have your extension here, will you accept?

Contractor: Only for an extra few quid.

Agent: No.

Contractor: Ok, I accept.

[JRCT]

I renewed at end of March to take me over the 24 months. It never even crossed my mind to ask for a rise on these grounds.

[stek]

I renewed at end of March to take me over the 24 months. It never even crossed my mind to ask for a rise on these grounds.

And are you now claiming expenses?

[SlipTheJab]

Has anyone EVER managed to get client to agree to this based on contractor explaining the 24 month rule to them?

Can just see it.

Contractor: Thing is for 2 years I've managed not to pay tax on all my travelling costs and saved myself couple of £100 a month in tax.

Client: You mean travel to work like us permies pay for out our net salary? That must be nice for you.

Contractor: Yes. Thing is I want £x per day to cover this or I'll be worse off.

Client: So you've been here 2 years, getting x times more than the permies, you've been milking the tax system, and now its over you want us to pay more?

Contractor: Yes please.

(BTW. Not saying I agree with this conversation but this is how client may think rightly or wrongly. 90% IMHO seem to think the start rate is the rate forever).

Not saying you should be explaining the reasons for the %age increase you're after to the client/pimp, they don't need to know the reasons why.

[JRCT]

And are you now claiming expenses?

No.

[unixman]

Nope, the £1,000 is currently pre tax

To get £1,000 post tax he needs to earn an extra £666.66 or £33.33/day

True, it has to be "grossed up".

Meanwhile, the company profit increases by £1000 a month, so corporation tax goes up by £200. Your company is worse off by £200 and you are worse off by £666. (all other things assumed equal)

So is the answer 886/20 = £44.30 ?

[SteelyDan]

Has anyone EVER managed to get client to agree to this based on contractor explaining the 24 month rule to them?

Can just see it.

Contractor: Thing is for 2 years I've managed not to pay tax on all my travelling costs and saved myself couple of £100 a month in tax.

Client: You mean travel to work like us permies pay for out our net salary? That must be nice for you.

Contractor: Yes. Thing is I want £x per day to cover this or I'll be worse off.

Client: So you've been here 2 years, getting x times more than the permies, you've been milking the tax system, and now its over you want us to pay more?

Contractor: Yes please.

(BTW. Not saying I agree with this conversation but this is how client may think rightly or wrongly. 90% IMHO seem to think the start rate is the rate forever).

Didn't work for me when I tried it...I don't think clients give a stuff about this tbh, whether you explain it or not to them. Luckily my client has other sites which I need to go to...so happy to claim mileage/subsistence on those occasions.

[Grinder]

Why not ask to work 2 days on site, 3 days at home. Then the 24 month rule doesn't apply.

[unixman]

Didn't work for me when I tried it...I don't think clients give a stuff about this tbh, whether you explain it or not to them. Luckily my client has other sites which I need to go to...so happy to claim mileage/subsistence on those occasions.

True. but the client and/or agency might find it more convenient to agree to a small rate increase than have the expense and bother of finding and hiring a new contractor (who might charge the higher amount anyway), then waiting while he gets up to speed on the client systems.

Obviously your request must include a real intention to leave (not renew). They aren't going to give you something for nothing.