Newbie Perm to contractor - Guide pls

[Winsome]

Dear pro contractors,
I have been a permie since forever but somehow gained skills in a niche and indemand area in last 3-4 years.Also I have been wanting to switch to contract for last 2 years so I took the plunge recently and gave notice at my permie role. Got 2 contracts pretty quickly and Accepted one of them with CompanyA. Its a one year contract and the companyA is keen to highlight even now that they are looking at me longer term( they were originally looking for perm role but offered me contract on my insistence) and I see no reason they wouldnt extend me. I knew that the companyA (consultancy) was offering me 100£ less then market rate for the role, i still took it as its a long contract and i am sensing i can probably get easy extension. Its still significant more money then my perm role.
As I had an interview arranged with companyB before accepting offer with CompanyA. i still
went there and now they have offered me 6 month contract which is 100£ higher then companyA and seems inline with market rate. Also there is no agency with companyA and there is an agency with CompanyB.CompanyB is like 10 mins from my home and I would have to travel 1.5 hrs each way with CompanyA but I sense long term engagement there. Can you pls guide if any of u have faced similar situations. Have u ever pulled out of contract before it even started. I feel really bad as I have signed contract with CompanyA and they are expecting me onsite next week but the other offer is playing with my head.

[Pat Phelan]

What is a "pro contractor"?

[malvolio]

If you can't work out the financials on such a clear comparison of roles, why do you think we can?

If you're going contracting for the money ( which is a big mistake, but hey...), then work out the one with the best net profit. If you're doing it for the freedom and the flexibility, then take the one with the least damaging effect on your work/life balance.

HTH...

[Freewill]

You should take the nearby higher rate, for obvious reasons. Also it gets you up to market rate immediately which will make it easier for you when negotiating your next contract.

You probably made a mistake by accepting companyA too quickly, if you have 2 potential offers you should delay signing the first one (tell them the contract is being reviewed by your solicitor). But it's understandable to jump at your first contract offer as you don't want to lose it.

Tell Company A that, on reflection, 1 year is too long a period for you to currently commit to. You moved into contracting to get more varied experience and not to commit to a single company. You cannot give them the long-term commitment they are looking for. They will be miffed but it's better than you quitting on them after 6 months. They will find someone else.

[northernladuk]

A bird in the hand etc.. It wouldn't be the first time we've see someone try switch gigs and end up with nothing.

Although..

Its a one year contract and the companyA is keen to highlight even now that they are looking at me longer term( they were originally looking for perm role but offered me contract on my insistence) and I see no reason they wouldnt extend me

So you are a disguised permie and not only have a below market rate but you are going to have to account for inside IR35 so having none on the benefits of the low pay high dividends.

You also fall foul of the 24 month rule so no expenses as you are making it clear you expect it to be ongoing.

Lots of discussion around both of those but just throwing them in for consideration.

You simply can't stay at the first one and (IMO) possibly shouldn't have taken it on the factors above.

[LondonManc]

As NLUK hinted at, you're inside IR35. His comment about the 24 month rule is therefore irrelevant as you cannot claim T&S expenses on an inside IR35 contract. Sounds like Contract B will be worth far more than £100 per day to you.

That said, text speak in a forum makes you come across like someone who deserves everything they get.

Oh and notice periods mean diddly-squat - they can have you off site at a moment's notice.