• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

A Penny for Your Thoughts - What Would You Do?

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    A Penny for Your Thoughts - What Would You Do?

    Background
    I am 31, a Business Analyst for five years in the insurance industry. In January 2017, I inadvertently fell into contracting - I had applied for a job in my hometown, had 3 interviews, only to be offered the job on a permanent basis before it was retracted due to internal restructuring. They then offered me the role on a contract basis, with a view to making me permanent six months later. They were true to their word, although by this time I was tempted to stay contracting (a cynic might suggest at this point I'd seen all the upsides to contracting with none of the downside!). However, they persuaded me to switch to PAYE with a very attractive offer (circa £60k) - a key factor in my decision was the security as we'd just had our first child.

    Fast forward a year, and I am having second thoughts as to whether I made the correct decision....

    Current Position
    My current, permanent contract carries a three month notice period, which makes finding a contract role very difficult without taking the plunge. The current job is massively convenient - 5 minute commute each way, it fits neatly around childcare arrangements, the people are nice, the package is extremely competitive, especially given that I do not have London commuting costs. Certainly, I do not want to burn any bridges by forcing their hand with notices etc.

    However, the job is incredibly boring. The workload is much too light (I feel this is not just me that is suffering from this problem), and the senior management seem reluctant to pass on responsibility/tasks, which makes for a busy management team with very little time for the HR touchy-feely stuff (1-2-1s, L&D etc.). I've asked several times about studying for additional qualifications but have been repeatedly fobbed off. I've asked about extra work and tried to take the initiative, but this doesn't seem to work for any period of time. I returned to work after two days off today and was caught up on emails and outstanding tasks before 9am...

    The Dilemma
    My wife, and indeed family that I've spoken to about this, think I should return to contracting. I still have the limited company in place (albeit in a non-trading status) and I like a challenge. In my career, where I've stagnated in a role or felt that there is no development, I've moved on, and I am beginning to feel these same feelings. My longest role to date is two and a half years, but typically I've averaged about 18 months in each job. Finding another permanent role on an equivalent salary is extremely difficult (at best I could probably get a similar net take home when factoring in commuting costs), and I'm seriously toying with the idea of handing my notice in and then attacking the contract market as the clock runs down. This is somewhat of a high risk strategy, especially given that I do not have much in the way of savings to fall back on.

    The Question(s)
    - Some recruiters have flatly informed me I will not get a contract with a three month notice, while others have mooted that it may be possible for certain vacancies. I suspect the former is true, but has anyone managed to get a contract role before completing a lengthy notice period?
    - What would you do in this situation? Would you stay put, or roll the dice and look to go contracting?
    - The market seems incredibly buoyant currently - is it madness to hand in my notice without having another job lined up?
    - Some outgoing contractors at my current place of employment (weirdly, nearly all the contractors I work with turn down the offers of renewal...!) mentioned a possible change to legislation in how limited companies are being taxed from October this year. Is this doom-mongering, or is there some truth to the rumour - I cannot find anything on the Internet on this? (I'm aware of IR35 changes, but does not apply to my industry).

    My current position is highly convenient, but I am not feeling fulfilled in my career, and fancy a fresh challenge. I do miss working in London, although not so much the daily commute. I suspect I would be looking at day rates of £400-450p/d, which at least initially might feel like a substantial pay rise, when you take all the factors into play (e.g.: current 22% pension, 25 days holiday, time between contracts, probable future paternity leave in the next 2 years etc....) is perhaps less so. However, I do think ultimately we would be better off.

    I'm keen to get the views of people in the market currently, as I'm in a real dilemma. I'm reluctant to give up a cushy number, but at the same time I am ambitious and don't feel like there is much scope for progression in my current role.

    Stick or twist?! What would you do.....?
    Last edited by fiisch; 17 July 2018, 21:34.

    #2
    For something that long I'll be billing you more than a penny to read.

    Got as far all the perm, contract then perm marlarky.. If you are even considering contracting make sure you research IR35. That situation you were in just reeks of it.

    Switched off after that sorry.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      Put in your notice and then start looking for a fresh contract one month before you leave.

      Or am I missing something here?
      "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
      - Voltaire/Benjamin Franklin/Anne Frank...

      Comment


        #4
        I touched on IR35 in Chapter 17, page 412.......

        I have read up on IR35 - I used a (very good) accountancy firm to manage limited company affairs, and they're happy that I was free to opt out of IR35 legislation. Are there further changes afoot for this year? I heard a vicious rumour of potential more changes in this year's budget which could have big impacts for small limited companies?

        In a nutshell, I'm interested in people's opinions as to whether I should stay as a safe and secure permie or take a punt and go contracting. I could up my offer to 5p...

        Comment


          #5
          Originally posted by cojak View Post
          Put in your notice and then start looking for a fresh contract one month before you leave.

          Or am I missing something here?
          Thanks Cojak - refreshingly simple! Well, I guess it's my permanent mindset that holds me back - what if I don't find a contract? Or is the market suitably buoyant that someone with relevant experience should be fairly confident of securing something fairly quickly?

          Comment


            #6
            Well, you may only have until April 2019 if HMRC rolls out the Public Sector IR35 into the Private Sector. Or they may announce it then and implement in 2020, that give you just over a year I suppose.

            If that does happen you’d better be in contracting for other rewards than money...
            "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
            - Voltaire/Benjamin Franklin/Anne Frank...

            Comment


              #7
              Oh, and take it from me - a BA on £60k is VERY good. In the East Midland it’s more like £45k - £48k for a senior role.

              Personally I’d use your BA skills to work your way up in your current company (you know, SWOT, CATWOE, benefits mgmt, that kind of thing...)
              "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
              - Voltaire/Benjamin Franklin/Anne Frank...

              Comment


                #8
                Originally posted by fiisch View Post
                I touched on IR35 in Chapter 17, page 412.......

                I have read up on IR35 - I used a (very good) accountancy firm to manage limited company affairs, and they're happy that I was free to opt out of IR35 legislation. Are there further changes afoot for this year? I heard a vicious rumour of potential more changes in this year's budget which could have big impacts for small limited companies?

                In a nutshell, I'm interested in people's opinions as to whether I should stay as a safe and secure permie or take a punt and go contracting. I could up my offer to 5p...
                You don't 'opt out' of IR35. You need to read up properly and understand it. The government are currently consulting on rolling out changes that were made in the public sector last year to the private sector. There is lots of resistance, but most commentators think they're likely to barge ahead anyway.

                My 2p - you've got a young family, a well paid, flexible, convenient job and little in the way of savings. Stay put.

                Comment


                  #9
                  What's your warchest like?

                  How long can you go without work for while searching for a contract in a crowded market place?

                  If it's not massive, best ride out the B-word storm and see how the land lies after that in a couple of years.
                  The greatest trick the devil ever pulled was convincing the world that he didn't exist

                  Comment


                    #10
                    Stick. Keep looking for roles that will accept you with 3 months notice.

                    Use the extra time you have for training.

                    PS I would take the advice I want to hear. You are not me.

                    Comment

                    Working...
                    X