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Contracting in a recession

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    Contracting in a recession

    With the interest rate rise and a warning of a coming recession, are there any tips, tricks, what to look out for, what could be coming etc?

    Pile into the warchest I’m guessing is #1

    #2
    It takes a lot of weeks to make up for 1 weeks lost revenue.

    So don't hold out for £550 a day if someone is offering you £500.
    merely at clientco for the entertainment

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      #3
      I've been a contractor during recessions in the past, and I haven't seen a huge difference in the ability to find roles.

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        #4
        There'll probably still be work around, as businesses lay off staff to save money but still need things to be done. Probably best to expect more short-term gigs though. Projects that would take a few years are likely to be put on hold in favour of getting somebody in to stick bits on what they already have with string and chewing gum.

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          #5
          As my work involves making people redundant and saving companies money, recessions are good for my business

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            #6
            Originally posted by GJABS View Post
            I've been a contractor during recessions in the past, and I haven't seen a huge difference in the ability to find roles.
            Likewise, just depends on your skillset. Recessions can be good for some skillsets and sectors while others are pretty much invariant to the business cycle.

            So get one of those skillsets

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              #7
              This will be the first recession with many contractors forced inside IR35.

              If this recession gets bad enough there might be rate cuts especially at the banks.
              In the past some banks have done 20% rate cuts or even worse: two lots of 20% rate cuts.

              If we see similar cuts this time then I expect many inside IR35 contractors to switch to perm.
              Last edited by Fraidycat; 5 August 2022, 05:50.

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                #8
                Multiple gigs, adds resilience to losing gigs and rate cuts.

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                  #9
                  Tip: get on top of your personal finances. Review your burn rate.
                  If you have variable rate loans, look to clear them down before "investing".
                  Saving a few £ in tax by dumping money into a pension pot may sound good, but having the money to pay bills is better.
                  Don't rely on property price rises to get you out of trouble.
                  ...and if you've got a lot of savings, make sure <£85k of it is in any single banking institution.
                  {emotionless greeting}

                  Three Word Slogan

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                    #10
                    Originally posted by WTFH View Post
                    Tip: get on top of your personal finances. Review your burn rate..
                    Top advice. You can very easily get into the habit of "I've a huge income I can afford all these things" but if you end up benched that can start to hit very fast. Reducing your discretionary spend by the increases to your utility and mortgage bills for instance... and if you have a fixed mortgage deal don't be complacent, it's waiting to clobber you in a year or 2 or 3.
                    An annual budget/financial review in your household is sensible anyway, you can be amazed how much you're spending.

                    I'd also advise: be cautious jumping contracts for something shiny and new if you have a solid renewal available... the risk of a brand new contract getting terminated before or just after you start is much higher.
                    Originally posted by MaryPoppins
                    I'd still not breastfeed a nazi
                    Originally posted by vetran
                    Urine is quite nourishing

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