Greed...

[dkennedy1001]

I guess a few people have come across this scenario over the years so I thought I'd get some opinions.

I've gone for an interview at a small hedge fund and the rate question came up. I said £650 which I realise is a great rate but this was agreed with immediately and I can't help but think I could have got £700 when I saw his response.

I'm aware this is being greedy and there are people on here on half that but when I discuss the rate again officially tomorrow with the consultancy HR would you guys chance going for £700? I think they are the people really deciding it and we haven't discussed it yet. Think they are desperate for someone.

Thanks
Dan

[northernladuk]

Well you aren't going to get another penny if you don't ask. Thing is you have to stick it to them. It's a negotiation now so you've got to look like you mean business. Could I have another 50 please won't cut it. You might be in a better position being HR and not an agent though. Agents know the game but HR might not. Just have to make sure you don't rock the boat too much.

[dkennedy1001]

They know I'm also interviewing with a IB next week so I was gonna take that approach. Therefore say that the IB had increased their rate could you match it as I would then go with you etc etc

[BlasterBates]

If you now turn around ask 700, they may wonder that even if they agree you might change your mind and ask for 750, and instead simply ask contractor B when he can start.

I would only try this if you have several banks chasing you or you feel you can easily get an alternative.

[dkennedy1001]

I guess I should be taking the flat VAT rate scheme under consideration too.

At £650 I probably can just about claim for flat VAT but at £700 I will be over the £150k mark... The 6.5% vat saving isnt too far off the £7-8K extra I think I would have after tax from the extra £50 per day.

Below calcs put it at £4,560 in a VAT saving at 650 p/day.


VAT Calculator Results

VAT on Revenue (Normal): £30,000.00

VAT on Revenue (Flat Rate): £24,300.00

Savings: £5,700.00

Less: Corporation tax on savings: £1,140.00

Total savings: £4,560.00

[fool]

So two things:-

#1 - Some might construe trying to get paid as much as possible as greed, and it probably is, but not asking for more on the basis alone is moronic in a capatilist society. Anyone who berates you for earning a good rate is pretty much jealous and you're doing disservice to your field a by not pushing it as you help depress rates for the rest of us. End of the day, we'd rather have it in our pockets than making the already rich owners slightly more rich.

The first caveat here is you've potentially already set the rate and now you're moving the goal post. That's slightly uncool if you had access to all information when you agreed the rate and as you were meeting the PM, it sounds like you did, however if you're not super bothered about the role feel free to negotiate.

The second caveat is that, you can't actually gauge his budget based on him agreeing. It's not his money thus £650 may actually be his max, and he just doesn't care about negotating as long as it's under budget to get sign off. That said, maybe you can push it, you don't really know until you try, and if you're especially good or unique it'll probably pay off.

#2 - You don't need to leave the flat rate scheme until you are grossing £230,000. Even if you worked every day in a year, £700 daily + vat won't put you above that alone. £150,000 is just the joining threshold.

[dkennedy1001]

Thanks fool, very interesting reply. Get your point about shifting goal posts too.
In regards the joining threshold, I will be joining it as I am not a current contractor so the limit is 150k for me im thinking. Maybe I'm missing something though...

[fool]

Thanks fool, very interesting reply. Get your point about shifting goal posts too.
In regards the joining threshold, I will be joining it as I am not a current contractor so the limit is 150k for me im thinking. Maybe I'm missing something though...

So you can't join the scheme if you resonably know you're going to break the £150,000 threshold. However, you don't have to postulate on future earnings that don't actually exist, so if your contract length 8 months of less you're still fine to opt into the scheme.

At that point, even if you get extended you're fine until you're earning nearing £800 a day. When you bring in enough to worry about it you base it on what you've previously earnt plus future contract value and if that takes you over £230,000 you need to opt out.

However, even at £800p/d you only need to have two weeks holiday before your 4th renewal is signed with 3 month contracts or two weeks off before your renewal on 6 months contract to avoid that. If you're the type of person who'll have some time off, don't sign the yearly conract when you break £800 p/d as that'll instantly force you to deregister.

[dkennedy1001]

Thanks

Got ya, thanks for explaining.

[SpontaneousOrder]

Odd definition of 'greed'. Is there some upper limit to earnings which is considered 'too much' ? I don't get it. And exactly why is it too much?