FTC Disaster - Tell me it'll all be okay...

[fiisch]

Started a Fixed Term Contract in January, 5 weeks in after struggling to get any traction on the project I've been advised that the project is being canned. My position is still TBC - may be reallocated to another project, or may be shown the door (the latter seeming to be more likely). Absolutely gutting as I only took the FTC due to who it was with (the big daddy in the industry I specialise in), the chance of becoming perm and because I naively assumed I would be in a safer seat. Employer has conceded that they'll look to pay some kind of notice period if they're not able to reassign me, but has suggested I start nosing around the market.

Fortunately, somewhere along the way I appear to have built up a network - straightaway managed to secure two interviews with former clients, one of whom I ended my last engagement in December (19 month duration). Outside IR35, different programme - presumably there would be no issues from a HMRC perspective if I took this? i.e.:

May 19-Dec 20: Client A Outside IR35;
Jan 21-Feb 21: Employer A Fixed Term Contract;
Mar 21-?: Back to A Client A, Outside IR35.

The other client is offering the contract to be paid via a Brolly - £100/day more, and from a personal perspective I think I would prefer to work for them. Is this the more sensible option given my circumstances? Is there a back-of-a-fag packet rough calculator for working out take home pay via a brolly (without using one of the optimistic online calculators) - is 55% gross a fair estimate?

Sorry for the slightly garbled post - head is a bit of a mess at the moment. I keep finding myself in contracts where the work dries up, although this is the first time (ironically given FTC) I'm facing the boot. Find being idle at work messes with my state of mind and I'm normally a fairly laid back person, but having nothing to do - especially given current environment - is challenging. Took this FTC over 3 other contract offers, and now starting to rue that decision...

[northernladuk]

You're coming here for cuddles? Might be another decision you'll rue

Re the outside gigs. What are they likely to do in April. The gap gives you some good breathing space but if the role has the same title you could have an issue. Many other people outside/inside so you'll be quite a way down the list.

I think the rule of thumb is you need a 30 to 35% uplift to go inside and be around the same.

[ladymuck]

All brollys have a calculator which will tell your estimated take home for a given day rate. There is no need to get any fag packets out. If you want a detailed illustration because you want something special done with your money (e.g. max pension payments or have a non standard tax code, etc) then you need to talk to a few. Just remember to exclude expenses to be on the safe side and give yourself a worst case scenario. Play around with the numbers to get a feel for the sort of rate uplift you'll need.

Going back to client A via a brolly should be fine. It sort of avoids the need for any IR35 status determination that could contradict the earlier outside decision.

NLUK is right in that Client A need to decide what they will do from April. You'll be protected from it to a certain extent but, if deemed inside, you'll lose the ability to receive tax relief on expenses.

[GhostofTarbera]

Started a Fixed Term Contract in January, 5 weeks in after struggling to get any traction on the project I've been advised that the project is being canned. My position is still TBC - may be reallocated to another project, or may be shown the door (the latter seeming to be more likely). Absolutely gutting as I only took the FTC due to who it was with (the big daddy in the industry I specialise in), the chance of becoming perm and because I naively assumed I would be in a safer seat. Employer has conceded that they'll look to pay some kind of notice period if they're not able to reassign me, but has suggested I start nosing around the market.

Fortunately, somewhere along the way I appear to have built up a network - straightaway managed to secure two interviews with former clients, one of whom I ended my last engagement in December (19 month duration). Outside IR35, different programme - presumably there would be no issues from a HMRC perspective if I took this? i.e.:

May 19-Dec 20: Client A Outside IR35;
Jan 21-Feb 21: Employer A Fixed Term Contract;
Mar 21-?: Back to A Client A, Outside IR35.

The other client is offering the contract to be paid via a Brolly - £100/day more, and from a personal perspective I think I would prefer to work for them. Is this the more sensible option given my circumstances? Is there a back-of-a-fag packet rough calculator for working out take home pay via a brolly (without using one of the optimistic online calculators) - is 55% gross a fair estimate?

Sorry for the slightly garbled post - head is a bit of a mess at the moment. I keep finding myself in contracts where the work dries up, although this is the first time (ironically given FTC) I'm facing the boot. Find being idle at work messes with my state of mind and I'm normally a fairly laid back person, but having nothing to do - especially given current environment - is challenging. Took this FTC over 3 other contract offers, and now starting to rue that decision...

53% is the norm (no expenses)


Sent from my iPhone using Contractor UK Forum

[fiisch]

Thanks chaps. I just wanted to have a moan really

Notice gone in today as it's taking it's toll on my state of mind, interviews lined up early next week.

1. Engagement via Umbrella - £550 a day, former employer from a few years back, was very happy when I worked their previously.
2. Outside IR35 (via a consultancy) - £500 a day, new exciting start-up with some big names behind it, and a hot topic in the industry.

I know a proper contractor would take 2 over 1 every single day of the week, but my heart is telling me to take no.1...

[ladymuck]

Thanks chaps. I just wanted to have a moan really

Notice gone in today as it's taking it's toll on my state of mind, interviews lined up early next week.

1. Engagement via Umbrella - £550 a day, former employer from a few years back, was very happy when I worked their previously.
2. Outside IR35 (via a consultancy) - £500 a day, new exciting start-up with some big names behind it, and a hot topic in the industry.

I know a proper contractor would take 2 over 1 every single day of the week, but my heart is telling me to take no.1...

I'm a firm believer in trusting your instincts. Going back to somewhere you know and like after having a rubbish gig is a good option IMO.

Good luck!

[northernladuk]

Thanks chaps. I just wanted to have a moan really

Notice gone in today as it's taking it's toll on my state of mind, interviews lined up early next week.

1. Engagement via Umbrella - £550 a day, former employer from a few years back, was very happy when I worked their previously.
2. Outside IR35 (via a consultancy) - £500 a day, new exciting start-up with some big names behind it, and a hot topic in the industry.

I know a proper contractor would take 2 over 1 every single day of the week, but my heart is telling me to take no.1...

Not me. That's a not brainer in my book. I'd be taking 1 before the ink has dried. I'd take a contract I enjoyed and you know more about it so you've more chance of it lasting. Now is the time to be I know with as few unknowns flying around as possible and watch contracting world go to rat tulip and then right itself. If they've asked you back once this one could has a chance be your safety net for the rest of your career as well.

The startup (that term alone makes my blood run cold) has risks about longevity and pressure of the work. Not the time for this. There will always be an exciting start up somewhere.

I've been inside on that rate and I wasn't looking forward to the cut it worked out great. I never felt so rich. Big lump sum I couldn't spend in my bank every month. No dicking around with divis and keeping it to the minimum all the time. If you've got the war chest then make a big pension payment and the tax burden will be greatly reduced.

No IR35 issues. No getting up to speed and then regular periods of worrying about the project getting canned. Happy days.

I see why you've got a gut feeling and I'd be going with it as well.

[northernladuk]

I know a proper contractor would take 2 over 1 every single day of the week, but my heart is telling me to take no.1...

I don't think that's right. Dyed in the wool one might but a proper contractor makes a decision based on the best way to generate end to end income and see beyond the day rate. Sometimes there are other factors more important than the day rate so makes a business decision not just a rate based on if that helps.

[eek]

I don't think that's right. Dyed in the wool one might but a proper contractor makes a decision based on the best way to generate end to end income and see beyond the day rate. Sometimes there are other factors more important than the day rate so makes a business decision not just a rate based on if that helps.

+1 - every contract I've taken is based on what can I do after this contract, money has never been that important, interesting projects and the contracts options after this one are way more important.

Plus IR35 is only an issue because we are used to using limited companies. For new contractors going contracting will just mean more money and throwing a lot into a pension pot.

[SueEllen]

Thanks chaps. I just wanted to have a moan really

Notice gone in today as it's taking it's toll on my state of mind, interviews lined up early next week.

1. Engagement via Umbrella - £550 a day, former employer from a few years back, was very happy when I worked their previously.
2. Outside IR35 (via a consultancy) - £500 a day, new exciting start-up with some big names behind it, and a hot topic in the industry.

I know a proper contractor would take 2 over 1 every single day of the week, but my heart is telling me to take no.1...

You can't buy happiness....