State of the Market

[tsmith]

Closing up shop now would be absolutely bonkers. What are you doing to do when someone offers you an out-IR35 contract in May? Start a new one with all that brings?

On the plus side, less chaff in the pool.

Indeed. Imagine if youre on the bench for 3 to 4 months per year then 6 months inside. 4 months bench then 6 months outside. you have the hassle and cost of a limited thats maybe being used for 6 months every 2 years right?

It all stacks the deck further in favour of the hassle outweighs the benefits

Especially with all these 500-600 per day roles inside im seeing - £515 being £264 per day net. Junior Project Manager levels from 2005.

[Bluenose]

Especially with all these 500-600 per day roles inside im seeing - £515 being £264 per day net. Junior Project Manager levels from 2005.

Oh yeah, there are senior London based role's advertised with 10+ years for £400pd inside.

Chancers!

[northernladuk]

I lost a lot back in the financial crisis, including my sanity, due to several periods on the bench and no war chest. I won't go into the precise details as I still find it disturbing 10 years later, but would say that throughout that period it never even occurred to me to close my company and take a perm role.

Sorry to hear and glad you got through it. I wasn't around at this time so can't comment but for me it's been a good run of outside gigs. I would say we've had more security than perms but it's all gone spectacularly tits up. The market for outside gigs has well and truly gone so new thinking is required. I've always been open to perm and inside should it suit me so never been a contractor or death type. Obviously nothing beats outside gigs when the going is good. It's not anymore which needs a change in thinking. Anyone that will never do an outside gig or perm is going to be in real trouble or look a bit foolish when they end up taking inside/perm, which they will.

The smart contractor will understand what is going on and adjust to suit, be it an inside or perm gig, shut the company should it be beneficial to do in the long run. Adapt and survive is the motto here. Yes don't knee jerk and shut the company but if it makes sense to do so then go for it. So, as a poster mentionld, you may end up inside for only 6 weeks. So be it, you then do what you need to.

IMO there is no place for absolutes in this day. Knee jerk shut the company because you are inside, never take an perm gig etc are old thinking.

[GhostofTarbera]

I'm closing mine - only slightly connected.

I've always taken a risk averse approach outside of IR35 - My war chest is in my account not the company. I pay a bit more tax but take it all out as tax efficiently as possible.

I've always paid an accountant (despite being one myself) in order that the accountant can deal with HMRC in the event of investigation however going forward....... IR35 is a client issue, not mine. Payroll and VAT enquiries are straight forward so long as you keep up with the rules.

Therefore going forward i'm more than happy to do my own accounts. Means that I can keep my own Ltd open if I am operating under a brolly for a caught contract for future outside contracts. The costs are essentially my time and the costs of the annual return and small bank account fee.

So my current one is closing to draw a line under the past. Virtually removes the chance of retrospective investigations (and there's no money in the company even if they do).

Does not mean to say I'm leaving the contract market.

Yes you will swap from being a permietractor to a Temp (well paid one)


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[Hawkeye]

Oh yeah, there are senior London based role's advertised with 10+ years for £400pd inside.

Chancers!

But there are so many people with bills to pay am seeing these roles being liked on LinkedIn and assume they must be being filled?!?

[uk contractor]

Closing up shop now would be absolutely bonkers. What are you doing to do when someone offers you an out-IR35 contract in May? Start a new one with all that brings?

On the plus side, less chaff in the pool.

Closed mine & paid the HMRC their corp tax. It takes so little effort to open another ltd company. If the new rules are favourable to IT contactors then more than likely you will need a new payment mechanism anyway.

[tsmith]

But there are so many people with bills to pay am seeing these roles being liked on LinkedIn and assume they must be being filled?!?

Definitely will have no problems filling depending on how niche the skillset. Enough desperate people around with mortgages and families to pay for.

Also enough noobs that wont understand the net day rate until their first payment

[oliverson]

My emphasis.

Tuppence worth of free health advice: perhaps it should have. Arrogantly holding on in the hope of "better times^TM" is poor practice when one is in need of money to survive.

Had I taken your advice I wouldn't be in the strongest position I'm in now over 10 years later. I certainly wouldn't be taking a few months off w.e.f. this Friday when current gig ends to enjoy my penthouse apartment in Andalucia and watch IR35 blow over, whilst working on my plan B. No, I'd have had a miserable, soul destroying decade in permie land, had I taken your advice.

It's an old adage but it definitely rings true "what doesn't kill you makes you stronger" and it most definitely has.

[uk contractor]

This whole "Real Contractors" wont shut your company is real contractor arrogance at its best.

If you are paying a monthly fee to an accountant and this takes a year to all blow over then it is probably best for financial and tax reasons to close your company. The problem is if you are a contractor who is use to dealing with bigger companies such as RBS then you are effectively being unfairly blanket banned. We as contractors work on a broad range of projects with a broad range of industries. Some of us work with banks, some with telecoms and others with small companies. If you need to shut your company and take a permie job to keep up the mortgage payments then do it. Don't listen to idiots saying you were never a real contractor.

As I have stated before, IR35 is designed to stop the people sitting in the same role for 5 years claiming to be a contractor. It is just unfortunate that some industries are implementing this unfairly. I am sure that like all markets, there will be a further correction especially with Brexit and our immigration laws.

This is exactly why you shut it down as those accountant fees stackup fast!

[PerfectStorm]

This is exactly why you shut it down as those accountant fees stackup fast!

I'm prepared to burn a grand or so of accounts fees, insurance.

After all, I am a person running a business, not an individual with a structure behind them as a means to an end... right?