IR35 fodder - how much to over-quote to make it worthwhile?

[Mordac]

Just been approached about a possible contract which is fairly local and of technical interest. The rate is at the top end of my wish-list (£550 p/d) but the immediate downside is the client & end-client, which I know enough from previous encounters to be so sure the contract will be an IR35 fail that it would be moronic to pay Kate Cottrell a few hundred quid just to confirm what I already knew. The upside is SC clearance, which may well come in handy later.
So, does one bend over and take the short term hit, and if so, what percentage does one factor into the minimum rate to make it worthwhile?

[SueEllen]

Can you put most of the money in your pension? Are your travel costs minimal?

[Mordac]

Can you put most of the money in your pension? Are your travel costs minimal?

Travel costs are minimal (less than 20 quid) and nothing goes into the pension, which is worth a little less every year. So I have no wish to throw any good money after bad. The rest of the pot goes into property.

[northernladuk]

Someone said the difference is about 30% so as long as its a short term gig it's not going to kill you. Sitting on the be cheap gonna few weeks while waiting for an outside gig could leave you worse off.

Local, short term, interesting gig, SC clearance. Some good lifestyle and business benefits there I'd say so well worth some consideration.

[The Plantswoman]

Just been approached about a possible contract which is fairly local and of technical interest. The rate is at the top end of my wish-list (£550 p/d) but the immediate downside is the client & end-client, which I know enough from previous encounters to be so sure the contract will be an IR35 fail that it would be moronic to pay Kate Cottrell a few hundred quid just to confirm what I already knew. The upside is SC clearance, which may well come in handy later.
So, does one bend over and take the short term hit, and if so, what percentage does one factor into the minimum rate to make it worthwhile?

H20 related by any chance?

[mudskipper]

Travel costs are minimal (less than 20 quid) and nothing goes into the pension, which is worth a little less every year. So I have no wish to throw any good money after bad. The rest of the pot goes into property.

Wrong pension possibly. Go for SIPP and choose a managed portfolio if you don't know what you're doing.

[Mordac]

Someone said the difference is about 30% so as long as its a short term gig it's not going to kill you. Sitting on the be cheap gonna few weeks while waiting for an outside gig could leave you worse off.

Local, short term, interesting gig, SC clearance. Some good lifestyle and business benefits there I'd say so well worth some consideration.

That's kind of where I was thinking. I'll take it and swallow the tulip. Knowing the client of old, there'll be plenty of that.

[Mordac]

H20 related by any chance?

If you mean Hs2, no, it's not that. H2o is water, and I only consume that in ice-cube form, when I can help it.

[Cirrus]

nothing goes into the pension, which is worth a little less every year. The rest of the pot goes into property.

Your pension is not worth a little less every year. Possibly the forecast annuity is falling but that's just a notional figure. As reported this week, one of my pension pots just put on £20k in 9 months. Not a bad investment. Property is generally not a good investment although it has been so for some people over the last couple of decades. The problem is you don't get the same tax relief you get on pensions.

[ChimpMaster]

Just been approached about a possible contract which is fairly local and of technical interest. The rate is at the top end of my wish-list (£550 p/d) but the immediate downside is the client & end-client, which I know enough from previous encounters to be so sure the contract will be an IR35 fail that it would be moronic to pay Kate Cottrell a few hundred quid just to confirm what I already knew. The upside is SC clearance, which may well come in handy later.
So, does one bend over and take the short term hit, and if so, what percentage does one factor into the minimum rate to make it worthwhile?

Can't you position an offer to the client that indicates you will accept £550/day if you can dictate the working conditions, else it'll be £750 (or whatever) due to government/IR35 regulations? Of course, get the client to sign the usual IR35 stuff and also ensure that you communicate that your professionalism, experience and capability will mean that you will over-achieve on their expectations, all whilst reducing any time/effort they would have otherwise suffered trying to 'manage' your workload.