A Penny for Your Thoughts - What Would You Do?

[northernladuk]

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?.

Oh dear oh dear. So much wrong with that so you really need to start your research from scratch if you are going to consider contracting. There are massive changes proposed and a big response but difficult to explain with such a misunderstanding of the legislation.

Don't go to a big accountancy. Go to a contractor specialist..

But as others have said I'm in the 'stay put' brigade.

[northernladuk]

Or am I missing something here?

15 minutes of your life after reading all that?

[SueEllen]

You have a young family and a flexible job. Stay where you are and climb up the career ladder. If you can get into management by networking and doing all the right stuff you will be laughing in 10 years time.

[BlasterBates]

Most jobs/contracts are boring. If you leave you may end up travelling to do a boring a contract. There is always some interesting work to do, but most of the work is boring, once you've changed that exciting line of code most of your time will be spent filling out tickets, and writing tedious tests. Often interesting work is also very stressful and involves long hours.

My advice, opt for the easy life, a cup of coffee and a "laugh" in the kitchen or the canteen is the best you're going to get in terms of job satisfaction. Do some distance learning, I did a research degree at the OU "for a laugh".

[DeludedKitten]

I'm aware of IR35 changes, but does not apply to my industry

Which industry do you do long-term contracts where IR35 doesn't apply?

Or do you just choose to work within IR35?

[Scotslaw]

You can try and have the best of both worlds.
Start applying for roles. The process of interviewing and receiving an offer can take up to a month anyway.
The process of background checks in financial services, following an offer can take another month.
Depending on how the first interview goes, try and gauge how likely you are to receive an offer, and hand in your notice accordingly.
Negotiate for a 2 month release with your employer (which they might be happy to do, if you’re light on work). Once someone has handed in their notice, unless they have a lot of work to transition over to someone else, employers are likely to seriously consider reducing their notice period. It’s better than paying someone who’s about to leave, to sit around and do nothing.
That’s how I made my transition into contracting. Mine was from a consultancy, so the organisational dynamic was different, but notice period was still 3 months.

[fiisch]

Thank you for the replies. The fact my current job is so flexible and well paid - especially as I'm not in London every day - makes it a very difficult decision.

Current warchest is nil (I used it to pay down the mortgage/invest in long-term S&S ISA) so I do not have any contingency if a contract wasn't immediately forthcoming.

IR35 does not apply to my sector - work in Private Sector, currently I understand it is applicable public sector contractors only, although this may change (although the opinions I have gleaned seem to think it would force talent overseas/make it difficult for domestic companies to compete so unlikely to extend to private sector). I do appreciate there is a test of is a contractor truly an independent contractor, or a glorified employee, but obviously for the first six months of my current employ I was very much a consultant hired for my specialised knowledge to provide expertise to my client, and in no way working for a boss or with a longer-term intention of being made permanent...............

Accountancy firm I use is somewhat large but specialise in contractor accounts (this is pretty much all they do).

As I expected, opinions on here are different from family (none of whom have worked or have a particularly good understanding of the contract market), so has given me balance.

Of course the third option - albeit slightly unethical - could be to secure another similar permanent position, and then seek out contract roles as the clock ticks down on my notice, but I am loathed to mess companies around as you never know when you'll encounter someone again...!

[l35kee]

Similar position that I was in. I was moving up in permie role but that meant more people management, and less doing. The more money I wanted, the more the balance tipped in the management direction.

I don't enjoy that. Now I get to do what I'm best at, and be paid something that I probably never would obtain as a permie, regardless of promotions.

Much of it is being truly honest with yourself about your ability to get a contract. If you know your either a: great enough at the job or b: fantastic at being able to prove you are (while you're not), then contracting wins hands down.

[northernladuk]

IR35 does not apply to my sector - work in Private Sector, currently I understand it is applicable public sector contractors only, although this may change (although the opinions I have gleaned seem to think it would force talent overseas/make it difficult for domestic companies to compete so unlikely to extend to private sector). I do appreciate there is a test of is a contractor truly an independent contractor, or a glorified employee,

I don't want to be rude but you've got IR35 so wrong you need to stop with the statements. The third major gaffe you've made so far 'IR35 does not apply to my sector - work in Private Sector, currently I understand it is applicable public sector contractors only,'

but obviously for the first six months of my current employ I was very much a consultant hired for my specialised knowledge to provide expertise to my client, and in no way working for a boss or with a longer-term intention of being made permanent...............

but you said

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.

Please go research IR35 from a clean sheet. You have it so wrong.

[fiisch]

I thought the additional dots conveyed a tongue in cheek reply quite well........

I know IR35 is a contentious issue, but you don't have to run quite so scared!