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As was pointed out before, HR make stupid rules and it doesn't matter what you say, they will not change them. I hit exactly the same thing at GSK - Astra Zeneca have an 11 month rule - I suspect that they will only do little projects from now on.
I think they had issues at AZ with long term contractors ( many years ! ) claiming the rights of employees when they got the flick. I believe some of them won payouts but have never heard the full story. 11 months at one place is more than enough for me.
If you want to stay outside IR35 I would NOT do this. Otherwise, you too are putting a premium on length of service. You could however justify a rate hike if you admit that the IR35 situation is the reason behind it (which would be justifiable as you would pay a lot more tax and this needs to be covered).
Otherwise, the only thing that should govern your rate is the type of work needed the resources you need to have in place to produce it on time to the required standard and it's intrinsic value to the project. How long you spend on the work or whether you will be offered more in the future is straying into dangerous territory and has no bearing on this at all as you are effectively putting a gun to the heads of clients by stipulating - no security therefore more money. The point of contracting is that there is no security anyway so there shouldn't be an additional charge as if you're implying they are denying you something that you need compensating for.
Denny: You usualy make a lot of sense, but to me the above is wrong.
I am in business. My rate is calculated on a number of things. These things change according to the length of contract. There are always startup costs, short term travel arrangements are more expensive than long term, same with accomodation. These are all costs that I need to factor in.
I also feel that offering discounts for long term customers is good business.
It has nothing to do with IR35 status, it is a business decision.
My rate or quote takes the whole job into account.
You will find that other businesses do the same. Ask a plumber to come out at short notice for a couple of hours and he has a minimum charge. Ask him to re-plumb your house and his rate changes drastically.
This is one of the problems of IR35. Interpretation of activity can give different understanding of status depending on your original viewpoint.
I am not qualified to give the above advice!
The original point and click interface by
Smith and Wesson.
Step back, have a think and adjust my own own attitude from time to time
I am snagged by the 11 months rule, which is a joke really because anyone who was contracting before it was brought in - can stay as long as they want - WTF ?
Also, they are only doing 3 month renewals, doesn't bother me that one (see above).
Looks like a blanket approach to cure a problem they haven't analysed properly. PM's, SDM's etc hate it as they are constantly having to bring new people up to speed and losing knowledge out of the door.
Denny: You usualy make a lot of sense, but to me the above is wrong.
I am in business. My rate is calculated on a number of things. These things change according to the length of contract. There are always startup costs, short term travel arrangements are more expensive than long term, same with accomodation. These are all costs that I need to factor in.
I also feel that offering discounts for long term customers is good business.
It has nothing to do with IR35 status, it is a business decision.
My rate or quote takes the whole job into account.
You will find that other businesses do the same. Ask a plumber to come out at short notice for a couple of hours and he has a minimum charge. Ask him to re-plumb your house and his rate changes drastically.
This is one of the problems of IR35. Interpretation of activity can give different understanding of status depending on your original viewpoint.
I agree on the idea of discounting for long-standing customers, but I do it differently I agree a contract that states the first x days of the contract will be performed at £Y and the remainder ay £Y-10% this means that the customer only gets the benefit if they actually convert into being a long term customer
27 working days left... (and no-one's bothered to ask me if I want to extend yet. Maybe they're not going to offer but somehow I doubt it... )
"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...
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