Contracting UK not viable. Where then?

[ABitMeh]

I don't know if I can do both, I only tried one.

Thinking you're entitled to a lifestyle where you live in nice hotels, and earn an integer multiple of the salary of someone else doing the same job locally, is brainwashed.

Move where the work is.

Isn't the point more that at the moment that's a viable business decision. If (applicable forms) of expenses get stopped it would no longer be. It's not just upsides (risk of termination) and regardless how nice the hotel (and in London, for the money quoted, it wouldn't be that nice anyway) that's not necessarily much fun either.

I'm not in the same boat currently, but had been until recently. If you don't want to live in that London it's a problem. It's not that there's no choice, just that we'll be forced to make a certain choice - either permi or local contracting, which depending on where and what industry isn't necessarily viable.

One of the reasons I started contracting (save for the usual less permi-bullsh*t) was to save money for a deposit on a house. Something those of us without rich or overly generous parents have struggled to do due to successive governments failures and something that would take a prohibitively long time as a permi. I subject myself to more risk in order to do that. Yes it's a choice, and yes we're well compensated (presently) for the risk but it's a more delicate balance in the real world than it may seem.



Oh - Hi by the way, long time listener, first time caller and all that.

[SpontaneousOrder]

It's not viable to pay less tax overall than a permie, while earning far more?

You're seriously saying that paying a fairly typical level of tax on £400/day is no a sustainable way of living?

How out of touch with the real world can you be?

400 per day, on a 200 day year is 80k. That's not necessarily more than you'd earn as a permie.

Then factor in employment rights & perks, and you're substantially worse off contracting.

[TheLordDave]

Need to watch out for all the Elf and Safety laws.

Don't worry about that I gollum covered.

[DimPrawn]

To buy a 5 bed house in a nice area of Sydney will cost you about 3 million dollars, or about 1.5 million quid.

Australia does have similar to IR35... 95% of Contractors in Australia do PAYG and don't have their own company.

A good rate in Australia is about 800 dollars a day, which is about 400 quid a day. You can pull about 200k Aussie a year, which is about 120k after tax
And compulsorily pension contributions. That's about 10k a month. So you better have a large deposit ready to buy your 5 bed house.

In short, Australia is now expensive. Even for well paid IT contractors.

And Sydney is the only viable location in Oz?

I think not, same as not many people own 5 bed houses in Central London.....

[SpontaneousOrder]

I don't much care about the taxes, but the expenses is a killer for me

I don't think d00hg understands what contracting is all about. I suppose that he thinks that labourers who sleep in grotty travel lodges in the city, or in their vans, should just move to where the work is. What about bridge building engineers? Do they have to live where there are the most bridges? Or the least bridges because thats where there needs to be more? Or should they just live where they live, and work away from home according to where the current bridge building project is underway?

[browntractor]

And Sydney is the only viable location in Oz?

I think not, same as not many people own 5 bed houses in Central London.....

Sydney is where the vast majority of IT contracting takes place. Melbourne is very nearly as pricey but lower day rates.

See for yourself... Go on domain.com.au and look at decent suburbs within 10km of the city centre (do some googling for a list if you have no ideas). Then check with a recruiter such as Talent International for day rates. Standard LTV ratios apply to houses of course.

[vetran]

To buy a 5 bed house in a nice area of Sydney will cost you about 3 million dollars, or about 1.5 million quid.

Australia does have similar to IR35... 95% of Contractors in Australia do PAYG and don't have their own company.

A good rate in Australia is about 800 dollars a day, which is about 400 quid a day. You can pull about 200k Aussie a year, which is about 120k after tax
And compulsorily pension contributions. That's about 10k a month. So you better have a large deposit (maybe 1M sterling) ready to buy your 5 bed house.

In short, Australia is now expensive. Even for well paid IT contractors.

If you worked around Australia would you be able to claim expenses?

How many contractors turn into businesses?

[tractor]

...

And Sydney is the only viable location in Oz?

I think not, same as not many people own 5 bed houses in Central London.....

Yeah but Perth to Sydney every day with no expenses jeez!

[tractor]

It's not viable to pay less tax overall than a permie, while earning far more?

You're seriously saying that paying a fairly typical level of tax on £400/day is no a sustainable way of living?

How out of touch with the real world can you be?

a)Why is that anyone's fault but yours?
b)Why does it make that big a difference (genuine question)?

I don't know if I can do both, I only tried one.

Thinking you're entitled to a lifestyle where you live in nice hotels, and earn an integer multiple of the salary of someone else doing the same job locally, is brainwashed.

Move where the work is.

If the permies can afford to live there, I think you can.

For someone who spends a lot of time here you demonstrate a remarkably poor understanding of how independent contracting in this country came about and how it works.

Do you really think your stupid, envious, trolling posts are going to make anyone change their viewpoint and run to the Treasury with a suitcase load of cash and volunteer it?

You just look more stupid with every post.

Yes, there is a lot of (over) reaction here. Most posters are probably only going to be affected by a couple grand each year. Big deal. Take one week less off per year and suck it up people. This is not the end and its not the worst it's going to get if people like D000hg have their way.

[PerfectStorm]

If yesterday's changes have made it 'unviable' for you then you must've been on a crap deal to begin with. Get a better contract.