How much to change from weekly to monthly

[MyUserName]

My contract is expiring soon and I may or may not get an extension.

If I do, I am guessing my agent will again try to switch me from weekly to monthly invoicing.

I will initially say no but if that means the end of the contract then I will probably back down as I like it here.

To compensate for the increased risk I will request a rate increase but I am not sure exactly what would be reasonable, as this is something gained by experience rather than beginner's guides.

I am allowing 4 times the risk and the report on their company was not great (they actually advised less credit that a month's worth of invoices so I am quite concerned about it), so am I being absurd in asking for a 10%-15% increase? Am I being too lenient?!?!?

I have no idea what margin the agent is taking so I cannot work from that angle.

Yes, I am aware that I am an idiot, I am not cut out to be a contractor, everyone else was born knowing this etc.

[northernladuk]

I have to say I have been offered between 30 and 60 days on all my contracts and have challenged all, some changed and some not but never had over 30 days. Never once did I feel I was in a position to change the rate based on the payment times. You might think there is a risk but the agent certainly won't agree as he knows his business and he isn't going to give you a rate rise on something he doesn't see as an issue.

You could of course bundle it in with a general request for a rate rise base on time spent and your value to the client AND the increased risk but I wouldn't try pushing for a rate rise to cover a risk the agent knows will never materialise... IMO of course.

Remember whatever you ask for you have to stick to your guns to get it. No half arsed whines that you think you should get it. You gotta sock it to them hard.

[MyUserName]

... You might think there is a risk but the agent certainly won't agree as he knows his business and he isn't going to give you a rate rise on something he doesn't see as an issue.....

Ah, I had not thought about it from that angle

[BolshieBastard]

WNLUKS. You aint going to get a rate increase just because they may \ are switching you to monthly invoicing.

TBH, if you are contemplating staying somewhere because it's nice over the invoice period changing, I'd say you've become part and parcel of the employer's organisation so, watch out for IR35 would be a wiser consideration.

[MyUserName]

if you are contemplating staying somewhere because it's nice over the invoice period changing, I'd say you've become part and parcel of the employer's organisation so, watch out for IR35 would be a wiser consideration.

This is something on my mind TBH. I was thinking of putting the difference between what I take home now and what I would take home if I was in IR35 in a separate account so if HMRC ever come knocking and I get snared I can simply give them the money and if they do not then after a few years I can use it myself.

Am I being naive in thinking that this will work or are penalties, interest etc are guaranteed to be added?

[northernladuk]

This is something on my mind TBH. I was thinking of putting the difference between what I take home now and what I would take home if I was in IR35 in a separate account so if HMRC ever come knocking and I get snared I can simply give them the money and if they do not then after a few years I can use it myself.

Am I being naive in thinking that this will work or are penalties, interest etc are guaranteed to be added?

I don't know if there will be a penalty but there will certainly be interest. Again, you don't mention this to agent/client. This is your business, not theirs. You can't ask for a raise to cover your risk from being caught for tax avoidance. That whould be highly unprofessional.

Just stick with the normal worth to the client versus cost if you leave argument and throw in any other pluses on your side.

I don't actually think a nice client puts you inside IR35. He might have said nice client as a contractor. Nice cause they take me out and have xmas does then yes.

[BolshieBastard]

This is something on my mind TBH. I was thinking of putting the difference between what I take home now and what I would take home if I was in IR35 in a separate account so if HMRC ever come knocking and I get snared I can simply give them the money and if they do not then after a few years I can use it myself.

Am I being naive in thinking that this will work or are penalties, interest etc are guaranteed to be added?

If they did deem you caught (after going through all the exhaustive legal processess), there would be interest and penalties.

Best strategy is not to get too comfy at client co as this just encourages you to stay and become 'part and parcel.'

Same happened to me where I stayed on site for over 3 years. In the end I was having sleepless nights so decided to leave. Limited co closed now so no worries.

Just my opinion.

[MyUserName]

... you don't mention this to agent/client. This is your business, not theirs. You can't ask for a raise to cover your risk from being caught for tax avoidance. That whould be highly unprofessional.

Absolutely, that would be an absurd idea. Not remotely what I am intending. I was merely wondering whether this would be sufficient to safe guard a IR35 nightmare scenario. Nothing to do with my clients, agents etc.

I don't actually think a nice client puts you inside IR35. He might have said nice client as a contractor. Nice cause they take me out and have xmas does then yes.

Well, this client is nice mainly because the site is a short drive from my house rather than me having to go into London which is the probable alternative.

[northernladuk]

Absolutely, that would be an absurd idea. Not remotely what I am intending. I was merely wondering whether this would be sufficient to safe guard a IR35 nightmare scenario. Nothing to do with my clients, agents etc.

You would assume this but the number of times I have heard contractors asking for rate rises due to 24 month rule and tax changes. It beggars belief sometimes.

[JoJoGabor]

I disagree. Negotiating is a two way process and you have to be happy with your deal. I am having issues getting paid on time for the last 5 months with a direct clint so just successfully negotiated an increased day rate to cover my increased risk to outstanding payments. That's the way I worded it and I got it.

Only you can work out your value, you don't have to give reasons you can just say, my price is xxx, but in your case I would explain you want an increase as the risk is hire, just like a bank will change the interest charged on the terms of a loan and risk profile.