A Penny for Your Thoughts - What Would You Do?

[madame SasGuru]

2). Realistically, what is the likelihood of the scope of IR35 being extended in the foreseeable future?*

*I appreciate this is a very loaded question, and may amount to how long is a piece of string, but what's the word currently? Is it widely expected (as one poster put) to be extended to all contract workers in the next budget, or is this doom-mongering and wider implications will make it impossible for the government to implement?

I’m slightly cynical but 100% in November's Budget for it to be introduction to the private sector April 2019 as Brexit can be blamed for any impact and HMRC like blanket inside assessments as do TCS, wipro and the other consultancies.

Mind you I’ve known this was going to occur since late 2016 and I’ve also spent the last 2+ years getting myself into a position where it won’t matter for me. I now provide (globally from my spare room) 2 pieces of core functionality a particular software package needs but doesn’t provide out of the box where the supplier / development team both know me and know I (both technically and politically) solve issues their cannot themselves resolve. Equally we are the go to partner (alongside a local lead partner) for resolving those issues worldwide.

[simes]

Much has been written so apologies if this was already mentioned.

Aside from what cojak says, which I completely agree with, if there is a fear of 'not getting anything after leaving the perm role', then shore up that confidence factor, maybe, by popping the CV up online in all the usual places and see if you get any bites from agencies.

While not fool proof, this might give you a sense of what is happening. Thereafter, it all comes down to the interview.

[Glencky]

Oh dear, oh dear. I read your OP no problem, and got peed off with the negative comments about it. Why reply to say it's too long? Just move along and leave it for those of us who can read more than 3 words a minute.

However then as I saw the thread develop and your repeated mess-ups over IR35, I started to entirely sympathise with NLUK's position! even in the later posts - "I'm now read on IR35, and have decided I definitely want to opt out." - you clearly do NOT understand IR35 on any level. The legislation has been around for a long time (2001? I can't remember, but a long time) and was there for a reason. It isn't a CHOICE whether to 'opt in' or 'opt out', it's a determination made by looking at both your contract and - this is really important - the actual working practices, independently. The changes made in recent years which affect both travel & subsistence, and IR35 and the public sector, and the mooted/ almost certain (IMHO) further changes that will affect the private sector, are only CHANGES to the legislation - you need to understand the original legislation as well as the later changes or you will have literally no way of assessing what business risk you have already taken in your one contract or what you're about to take in any subsequent contracts. This forum gives plenty of material for this research, but given it's developed over time it's not always that easy to research. But for a decent business analyst under utilised in his permie role, it should be easy enough for you to spend a few hours researching from different sources and reach a more credible conclusion.

Full disclosure: I've been contracting for 4 years and actively chose to operate my business on an inside IR35 basis for all contracts - for predominantly 'moral' reasons (for want of a better summary) together with some genuine reasons related to what I do, how I do it etc. Whilst I'm unusual, I'm not alone, and the fact there's anyone choosing to do this in itself should make you understand that this is something to consider carefully and not dismiss.

Back to the original question - the biggest concern here is your lack of 'warchest'. I think it's very easy as a permie to think that contractors walk out of a role one day and into another the next day. How are you assessing the 'buoyant market'? What is your basis of comparison? How are you doing that research? It's actually pretty hard to tell the state of the market but you might want to take a look at the 'State of the Market thread' which is saying pretty much the opposite at the moment (though it depends on your skillset and sector, of course).

In your situation, it's risky to give in your notice and then look for a contract, and you know it. You shouldn't be contracting at all if you don't understand the inherent risks (i.e. IR35) but more generally how much you should stick or twist depends on your attitude to that risk and how quickly you'd be in penury (with a family...) if you don't get a contract immediately.

Final comment - even if you secure a contract you can be bogged down for weeks in pre-screening requirements. I waited SIX weeks last year to get into a Tier 1 bank when they offered me the role *in the interview* and I spent - I logged it roughly - 7 full working days supporting prescreening requirements.

In short, there are loads of risks involved in running your own business. Spend a bit more time understanding them before you make your decision. And whatever you decide - good luck!

[fiisch]

I appreciate irony doesn't come across as well written down, but I thought the dots would give it away - I was being deliberately facetious re.: IR35. I know it's not a free choice - although if I did go contracting, I'd check with my new boss and confirm he is happy for me to opt out..................................

Time with family - a factor, but not a huge one(!), largely because most jobs I am likely to go for in the future (contract or perm) will be in the City, unless there's a dramatic economic shift. Central London is about an hour's commute - London working would mean less time with the family than at present, but I doubt I will be lucky enough to work on my doorstep forever (we are also talking of relocating where current job would be a lot less local, but still about an hour into the City). I'm fortunate that it wouldn't require overnight stays away from home etc. - I don't think I could do that, and it must take a lot of discipline and resilience.

I am currently getting badgered (lucky me) on LinkedIn and phone by recruiters, for a split of 50/50 contract/perm roles. However, for contract roles, thus far trail has so far gone cold once I've mentioned three month notice period. I've got a good CV and have a good track record with interviews (whether there's anything tangible to back that up once I've secured the job is a matter for debate).

Still on the fence, but this has been very helpful so thank you - I am going to have a good think [drink] tonight.

[jmo21]

Ir35 chat aside...

Young family, well paid, stress free, stable (as it can be, if it's quiet they might notice eventually), well paid job.

Stay permie.

[Glencky]

All sounds sensible. I'm glad you posted on here and that some of the responses made you think.

For 4-5 years as a contractor I've had regular approached on LI - many of them spam-type or non-credible jobs, or people just farming for contacts. But at least once a week - on average, obviously it varies - I've had a credible approach about a role I at least 'might' be interested in and fits my skillset and experience. On one occasion I got a contract that way, all to the good. But this year I'm on the bench for the first time (as a PM - I'd say there are more BA roles out there at the moment than PM, is the good news for you!) I expected it at some point, I prepared for it, and hey at least it's been a great summer so far! but even with all that it's give me a different perspective and obviously somewhat influenced my response to you.

As I said before - whatever you decide, good luck with it.

[fiisch]

One final question - IF I did decide to go down the contract route, is the norm for weekly or monthly billing?

Previously I billed monthly in arrears, although was told this was not usual, however few other posts I've read on here suggest that most people are billing monthly?

(I'm trying to work out whether I need to factor in an additional month unpaid after I've started working, in addition to the time it takes to find a contract).

[northernladuk]

There is no norm. It's on a contract by contract basis. The payment terms can vary wildly regardless which billing cycle you are on as well. Anything from weekly payments to 30 days in arrears. No money for 60 days from starting!!

Take the worst case and you can't go wrong.

[Ld1978]

One final question - IF I did decide to go down the contract route, is the norm for weekly or monthly billing?

Previously I billed monthly in arrears, although was told this was not usual, however few other posts I've read on here suggest that most people are billing monthly?

(I'm trying to work out whether I need to factor in an additional month unpaid after I've started working, in addition to the time it takes to find a contract).

My current contract is 60 day payment terms, so I worked nearly 3 months with no money. But Im hoping I will go straight into a job and have double bubble for a while

[wantacontract]

60k at a 5 min commute, with a no stress job.....stay man!