Contracting directly?

[WTFH]

Just wondering how it works for people contracting direct with clients for example, a bank

Forgive my ignorance but is it as simple as it sounds as most other consultants go via umbrella and an agency so direct would mean a better rate for the contingent worker?

Can I ask how long you've been contracting for?

[WTFH]

The person was on a contract outside, left and rejoined directly. Presume this is not via ltd co and not connected to the 7 years comment. I should have clarified.

The other person I spoke to we didnt discuss umbrella margins that was my own rough calc. They have been working for 7 years as a contractor

I found it odd they said they had to take holidays or it gets lost. Like a permie but not one for sure. Why not let the umbrella add it to your pay. Hey ho

Your story of the first person who was on a contract outside IR35, left that contract and agency/consultancy and then rejoined directly - was there a break of several months or more between them leaving and rejoining?

Umbrellas take a deduction from your rate for holidays so that when you take time off (which you really should do for the sake of your health and personal relationships), you still get a salary paid to you. When you work through an umbrella, you are working as an employee of that umbrella. That's how it works and that's why you get holiday pay.

[TheDude]

Just wondering how it works for people contracting direct with clients for example, a bank

There is no way a bank is going do deal with hundreds of permietractors directly so forget about it.

You will have to get used to dealing with agents and accept that there is no way that you will ever know what you are costing the bank per day.

I am so used to dealing with agents I swear I can smell the aftershave before my phone even starts ringing.

[redman123]

Your story of the first person who was on a contract outside IR35, left that contract and agency/consultancy and then rejoined directly - was there a break of several months or more between them leaving and rejoining?

Umbrellas take a deduction from your rate for holidays so that when you take time off (which you really should do for the sake of your health and personal relationships), you still get a salary paid to you. When you work through an umbrella, you are working as an employee of that umbrella. That's how it works and that's why you get holiday pay.

According to my umbrella they uplift your month salary to include the holiday pay in your salary, hence I do not take any hols unnecessarily (i.e. for the sake of using up 25d like permies). Agree its important for MH.
Unfortunately I do not know the gap period of that person before rejoining. I will ask next time if it doesn't sound too intrusive.
and to answer the above very recently.

[edison]

There is no way a bank is going do deal with hundreds of permietractors directly so forget about it.

You will have to get used to dealing with agents and accept that there is no way that you will ever know what you are costing the bank per day.

I am so used to dealing with agents I swear I can smell the aftershave before my phone even starts ringing.

It's too much of an admin burden for most organisations, especially risk averse ones like banks, to have to in effect manage dozens or hundreds of suppliers.

If you want to go direct then small to medium businesses are generally the ones to target in my experience. My last two contracts have been direct where I was brought in by CIOs who I knew well and had worked with before. In other words, unless you are more like a small consultancy (and I'm not), then networking is most likely to be the most successful method.

In both above contracts, the organisation had a turnover of around £100m and used agencies for contractors - I was the only one to come direct as far as I now. I am not a techie as such and am more of an IT jack of all trades, but I was able to jointly develop a Statement of Work with deliverables and milestones that the CIO approved.

[northernladuk]

According to my umbrella they uplift your month salary to include the holiday pay in your salary, hence I do not take any hols unnecessarily (i.e. for the sake of using up 25d like permies). Agree its important for MH.
Unfortunately I do not know the gap period of that person before rejoining. I will ask next time if it doesn't sound too intrusive.
and to answer the above very recently.

YOu seem fixated on Umbrellas here. Don't want to be rude but there seems to be a certain level of naivity in your approach to this. You've a lot to learn before you can piece together the complexities of direct and the issues that come with it.

Don't get hooked up on other peoples tales and get all dollar eyed and greedy. Understand what you do first, your clients, and general business.

[redman123]

Dont disagree with you there