State of the Market

[edison]

That's really quite unfortunate. It's interesting to see the different experiences people have had with gaps. There's loads of valid reasons for a gap, none of which mean a candidate is not employable or has a poor work ethic.

Having been on both sides of the fence as a candidate and hiring manager, I think up to 6 months gaps is usually not much of an issue. I've seen a lot of CVs that have partly explained this by stating they were looking after a family relative who was ill or they were doing a major renovation on their house. I've got two long gaps on my CV and have occasionally been asked about them by an agent or potential client and I used those exact two reasons (which were genuine.)

If you get a good candidate that fits the bill, then a sensible hiring manager wouldn't discard that person because of a gap. Once it gets towards a year though, then alarm bells usually start ringing.

[MisterLysenkiy]

Having been on both sides of the fence as a candidate and hiring manager, I think up to 6 months gaps is usually not much of an issue. I've seen a lot of CVs that have partly explained this by stating they were looking after a family relative who was ill or they were doing a major renovation on their house. I've got two long gaps on my CV and have occasionally been asked about them by an agent or potential client and I used those exact two reasons (which were genuine.)

If you get a good candidate that fits the bill, then a sensible hiring manager wouldn't discard that person because of a gap. Once it gets towards a year though, then alarm bells usually start ringing.

I took the approach of adding a month on either side to reduce the gaps. No problem with that only once went to the screening, but even that isn't a problem because not your CV goes to screening but you explicitly put the companies and dates again into their form and that data goes for a check, not the one from CV. So that is a chance for you to submit more accurate data then in CV.

If you don't want to, that even that is not a problem, as screening is usually done by young fool ladies who simply check the boxes - they never proper screening as it should be and could be walked around in few ways:

1. Simple - just give youк wife's phone and she will confirm them whatever they ask. They don't ask info but just tell whatever you submitted and ask if this is true or false. simple as that

2. Advanced - for those who highly rely on LinkedIn you make create a fake person profile at a company you worked. In advance, of course. Not that one can see it is a fresh profile. Populate it with some corp-alike-looking data and do the previous point.

No one would even go checking beyond THAT. In the very-very bad case, you just risk this contract, but the risk is low

[MisterLysenkiy]

I've been coming across FTC more often as they are more often being offered.
Can someone advise what the heck is FTC and how is it different from:

1. permanent
2. inside IR-35

I was offered either perm or FTC, told both are almost that same, and the same money to be paid with all the taxes taken by clientCo.

As perm is clear, the agent mentioned FTC to go through my LTD. Is that correct at all? Would I be then required to pay 20% corp tax on top of all the PAYE and NIN taxes paid for me? looks dreadful to be honest.. should I pay to personal banc acc instead? is it some way better than inside IR35?

[NowPermOutsideUK]

Eek answered this a while ago. It’s basically inside ir35 contract

[TheDogsNads]

I've been coming across FTC more often as they are more often being offered.
Can someone advise what the heck is FTC and how is it different from:

1. permanent
2. inside IR-35

I was offered either perm or FTC, told both are almost that same, and the same money to be paid with all the taxes taken by clientCo.

As perm is clear, the agent mentioned FTC to go through my LTD. Is that correct at all? Would I be then required to pay 20% corp tax on top of all the PAYE and NIN taxes paid for me? looks dreadful to be honest.. should I pay to personal banc acc instead? is it some way better than inside IR35?

Fixed Term Contract. You are a quasi employee of the client effectively with no employee protection. The pay can be pretty low. At the end of the FTC, you're released unless another FTC is arrange. FTC's tend to be used as short-ish term replacements for women going on maternity leave, sabbaticals or other temporary vacancy. However, you dont get much in the way of any employment protection as a permie until you have been employed for 2 years.

FTC is not the same as permie. By definition FTC is for a limited period. With perm, the intention more often than not, is that the engagement will be perm or at the very least longer than an FTC.

FTC through your limited is just a nonesense, the agent doesnt know what he / she is talking about. They've already told you under FTC the client will deduct taxes / NI so why would you want to put that net money into your limited as the limited's income and potentially pay Corp Tax on it?!

Inside IR35, the end tax position is all taxes and NI are deducted before it gets to you payment vehicle ie umbrella or your ltd. Generally speaking being inside IR35 makes using your ltd a waste of time.

[NowPermOutsideUK]

I have to admit I know nothing about FTC but eek seemed to know a bit

Is it possible that FTC via ltd allows pension payments to be controlled by you as employer ? Or maybe you don’t need to take any holiday and get paid for all days worked

I’d love to hear from others when FTC is better then perm if the numbers are the same..

[jamesbrown]

An FTC is a fixed term contract of employment (which is obviously completely orthogonal to self employment, whether direct or through an intermediary). It is no different to permanent employment, except that it expires after a fixed period. Depending on your industry, FTCs may be completely indistinguishable from permies as there are ways around offering permanent employment on renewal (so there may be FTCs who have been renewed several times and for many years - a lot of junior university staff are employed this way). In almost all respects, FTC == permie.

[NowPermOutsideUK]

Thanks James brown. Is there any advantage of FTC over perm if you were given the choice?

Can you think of any positives other then finishing when it expires (which is not a positive in my book). No employment tribunal no redundancy pay. What are the FTC benefits

[MisterLysenkiy]

Thanks James brown. Is there any advantage of FTC over perm if you were given the choice?
Can you think of any positives other then finishing when it expires (which is not a positive in my book). No employment tribunal no redundancy pay. What are the FTC benefits

The reason I've asked this question is that I am given this choice. Agent says that FTC is better choice as it gives more flexibility. But to whom? Looks like total BSHT when he said clientCo's perm notice period is 3 months, that would be better for me to choose FTC for 6 month. Given that I plan to work for them only 3-4 months until February 1st, there is no much difference to me, isn't it?

Is that legal at all for perms to require notice period longer than 1 months? smells badly as IMO

Having 3 month notice period would look weird if I get onboard and in 2 weeks from that issue them a 3 mnth long notice period.

[SueEllen]

The reason I've asked this question is that I am given this choice. Agent says that FTC is better choice as it gives more flexibility. But to whom? Looks like total BSHT when he said clientCo's perm notice period is 3 months, that would be better for me to choose FTC for 6 month. Given that I plan to work for them only 3-4 months until February 1st, there is no much difference to me, isn't it?

Is that legal at all for perms to require notice period longer than 1 months? smells badly as IMO

Having 3 month notice period would look weird if I get onboard and in 2 weeks from that issue them a 3 mnth long notice period.

It is legal to have notice periods of more than a month for a permie or even a fixed term contract.

Sometimes you can agree with the employer to decrease it or put you on garden leave. However out of the 3 most recent people I know who have had longer than a month notice period, 2 had to work their full notice.

I suspect the agent wants you to take the FTC as they get paid more if you are renewed or if they have to find another candidate.

The advantage of you taking the permie position is if they make you redundant they have to pay you 3 months wages or whatever the notice period is.

If you don't believe the agent, phone and talk to the company's HR. Simply say you want to work for them but the agent is giving you confusing information on whether the role is a FTC or permanent. (Don't mention things like notice periods.) The agent then may get pulled up, and give you a written contract to scrutinize so you know where you stand.

Also regardless of whether you are permie or on a FTC they are not clientco but your employer.