State of the Market

[BigDataPro]

Are you through an agent, do you know what the agent cut is?
If the agent is on a big enough margin you could of played harder ball...

That's a valid point, I was even thinking of it. But the agent is on a fixed margin. It could be somewhere around 10%-15%. But my end goal was to be in good terms with the client as they have recently started taking contractors directly. I do not want them to think that I am a trouble maker especially during the renewals.

I may have lost some revenue on renewal but I have gained a client who trusts me. This is the rapport and trust I want to build. It may not bring immediate business or benefits but the message of trust has been sent and implanted.

By the way I have done it in spite of numerous outside roles I received where the rates are little bit higher than my current role for my skillset. But I need a client who trusts and feels that they can fall back on me any time and that message has been sent really well.

[ladymuck]

That's a valid point, I was even thinking of it. But the agent is on a fixed margin. It could be somewhere around 10%-15%. But my end goal was to be in good terms with the client as they have recently started taking contractors directly. I do not want them to think that I am a trouble maker especially during the renewals.

I may have lost some revenue on renewal but I have gained a client who trusts me. This is the rapport and trust I want to build. It may not bring immediate business or benefits but the message of trust has been sent and implanted.

By the way I have done it in spite of numerous outside roles I received where the rates are little bit higher than my current role for my skillset. But I need a client who trusts and feels that they can fall back on me any time and that message has been sent really well.

That's a really good approach. I have a repeat client who I go back to every few years who likes me because I have lots of domain knowledge and yet am not going to take the mickey on rates. I know their internal processes well enough to not get the hump when paperwork takes a while and know the manglement well enough to be comfortable working at risk.

That kind of working relationship is not worth risking for an extra £50 a day rate increase. I just up it the next time they call me up

[edison]

Yes, if you are on an inside rate of £800 a day and you take 30 days a year holiday and/or sick, after taxes and umbrella fees your take home is slightly over £8000 a month.

Ofcourse you can choose to take less days off and so earn more, but I was comparing it to what perm people take off.

Sounds roughly right. A friend of mine who was recently switched to inside on £800/day showed me her payslip and take home was £1936 per week.

[eek]

Sounds roughly right. A friend of mine who was recently switched to inside on £800/day showed me her payslip and take home was £1936 per week.

That doesn't seem right my quick check says it should be £2177 - assuming she is getting rolled up holiday pay.

[edison]

Just started a short term consulting gig of 3 months with a previous client I've worked with several times in the past. They called me out of the blue and it wasn't a difficult decision to go back. Outside IR35 and fully remote although once the lockdown is hopefully lifted in July, I'll be keen to visit the office a few times to see some old friendly faces.

[_V_]

Business Analyst
Reading, Berkshire - £130 per Day
Inside IR35.

Business Analyst - Reading Berkshire - June-22-2021 (L8H2D) (jobserve.com)

Things picking up then...

Intermediate understanding of core HP businesses and the revenue cycle.

So basically this is already outsourced to one of the many HP Indian IT suppliers and they are running this to tick some boxes before someone on a work permit arrives. Nice one HP.

[Fraidycat]

That doesn't seem right my quick check says it should be £2177 - assuming she is getting rolled up holiday pay.

Assuming overall 55% take home after taxes, nics and fees etc, 230 days worked at £800 a day comes in at £1946 per week,

sum is: (800*230*0.55)/52 = 1946

[eek]

Assuming overall 55% take home after taxes, nics and fees etc, 230 days worked at £800 a day comes in at £1946 per week,

sum is: (800*230*0.55)/52 = 1946

I prefer to use an actual payroll calculator when doing my figures - so I took that 5 day week and run it through my systems (used to provide Key Information Docs amongst other items) and my figure is the figure I got.

Anything less than that is using assumptions about holiday pay (see your use of 230 days or 46 weeks and then dividing by 52) and I really don't want to go there....

If you are inside IR35 if your umbrella isn't offering rolled up (i.e. immediately paid) holiday pay find another umbrella.

And yes the umbrella may well say that they aren't allowed to offer rolled up pay but that's because they may be hoping to steal it from you as you fail to claim it.

[Fraidycat]

I prefer to use an actual payroll calculator when doing my figures - so I took that 5 day week and run it through my systems (used to provide Key Information Docs amongst other items) and my figure is the figure I got.

Your figure of £2177 a week seems well off (too high). Seems like you aren't deducting employer NICs in your calculation or assuming the contractor is going to bill 260 days year and never take any days off.

[eek]

Your figure of £2177 a week seems well off (too high). Seems like you aren't deducting employer NICs in your calculation or assuming the contractor is going to bill 260 days year and never take any days off.

I'm ignoring time off because it was completely irrelevant to my point. If the umbrella is paying out every penny from the £4000 assignment fee they received for the work that person did that week, that person should be seeing £2177 in their bank account.

Being blunt this is how the equation should play out

(800*5230*0.55)/52 = 1946 2200 - as everything else is completely irrelevant here.

We are well paid contractors so we really don't need someone looking after our holiday pay because we can't be trusted to not save some money for that holiday / rainy day. And the simple fact is that stealing holiday pay is for a lot of umbrella firms way more profitable than the actual thing we are paying them to do.