State of the Market

[edison]

I've been negotiating with several agencies over the last few weeks to recruit a fairly large number of permies for a couple of clients. I've been quite shocked at how high the percentage fees are compared to what was the norm about 12-18 months ago. Several said they have so much work on, they have increased their fees. In one case it's almost double what the same agency was charging me at a different client in 2020.

Does this mean we might see a relative downturn for contractors v perms, at least in the next few months?

Can you provide a figure for us?

One agency has gone from around 12-14% to 25%. For some roles, it's nearer to 40%.

Another was quoting me 30%.

I've got meetings with a couple of agencies next week who are more in the usual mid-teens range.

[ladymuck]

Job of the day - Business Intelligence analyst, Inside IR35, one month contract, £150 p/day.

Doesn't say if that's PAYE or umbrella

https://www.linkedin.com/jobs/view/3028670733

[KentDogWalker]

Job of the day - Business Intelligence analyst, Inside IR35, one month contract, £150 p/day.

Doesn't say if that's PAYE or umbrella

https://www.linkedin.com/jobs/view/3028670733

take my money

[mattster]

I think you slightly misunderstood my point. It's not the fees per se driving any changes. It's that they are reflecting a big increase in the amount of perm demand from clients which may mean there is less need for contractors.

I suppose that depends on whether there is a big increase in perm demand relative to contractor, or whether this big increase is across the board. Hopefully the latter, any idea?

[rocktronAMP]

Good grief! £150 per day for 1 month contract.

Different question and most likely 'finger in the air' time?

For those of you who are still contracting, how is your feeling for Outside vs Inside IR35 for say the next 2-3 years?

Assuming you win 6 month contracts and no famine in between each contracts, you are lucky enough and/or good / great enough to go from client to next client with just the usual 1 week break. What is your view of the future?



A: Outside -> Outside -> Outside -> Inside -> Inside -> Outside

B: Inside -> Outside -> Inside -> Inside -> Outside -> Inside


A is a contractor who wins mostly Outside IR35
B is a contractor who wins mostly Inside IR35


I know this is sounds crazy in 2022 and post-pandemic and I know that contracting is not about long-term planning, it has more in tune with the famous Steve Miller Band song, "Take the Money..."

My own initial thoughts, if future contracts are mostly winnable Inside, then what is the point of setting up yet another LTD and an account? If you only invoice a client through LTD in 2023 and 2025 for 6 months a piece, it clearly makes blinking sense at all.

On the other hand, with a lot of confidence (maybe the big head / massive ego / swagger), enough networking with past clients, perhaps, you yourself work actively in a key business niche sector, then you could estimate roll Outside for, say, 80% of the 3 year time period. You, then, could keep a LTD open (dormant) and then go through trusty Umbrella like Lucy's clarity for 6 months or so. I don't know, but I am asking some questions...

Thoughts ..., (and crystal ball)?


Disclaimer: I went permanent over a year ago, I am now reconsidering my options. I need to paid down a big enough financial debt and the cost of living ain't decreasing LOL

[jamesbrown]

C: Outside -> Outside -> Outside -> Outside -> Outside-> Outside

[rocktronAMP]

C: Outside -> Outside -> Outside -> Outside -> Outside-> Outside

ah I see, you are the confident *business niche* guy with the crystal ball then. Thank you. Okay.

[jamesbrown]

ah I see, you are the confident *business niche* guy with the crystal ball then. Thank you. Okay.

I am saying that it's a choice. I accept that there are some industries where outside IR35 contracts are now quite rare. If you're in one of those industries and/or not sufficiently niche/in demand, tough luck, I agree. On the other hand, when there is a choice between outside and inside contracts, you can choose between them. You can also choose to upskill/reskill. My point being that IR35 isn't something that is merely "done to you", you also do it to yourself. That has always been true, Chapter 8 or Chapter 10.

[eek]

C: Outside -> Outside -> Outside -> Outside -> Outside-> Outside

D: Plan B plays out and you don't need to worry about such things (there is an irony here that will become obvious in a few weeks).

[jamesbrown]

D: Plan B plays out and you don't need to worry about such things (there is an irony here that will become obvious in a few weeks).

Yeah or E: retire or F: go perm, but all of these involve ditching contracting. In a sense, IR35 has always been a non-issue for a certain type of contracting, not just Plan B or other non-contracting options.