Have you noticed the latest tricks that companies do to try and secure contractor calibre people for a fraction of the cost?
Let's say you can contract your services on £400/day.
Instead of offering you a £400/day contract for 12 months, they offer you a 'fixed term contract' where they would pay you say £40k salary plus allow you to enjoy their company benefits for 12 months.
Do the maths- this is much cheaper for them. Instead of paying you potentially £400*5*40 = £80k they pay you salary £40k plus 'benefits'. Benefits at these companies have been seriously downgraded over the years. You're lucky to get an use of an outdated gym now. Forget free parking space, cheap lunch, free cups of tea etc.
Obvious downsides is that you get paid less plus you are taxed more on PAYE and can't offset expenses.
Surely self-respecting contractors should avoid these offers.
Furthemore, some companies are now offering 'permanent' jobs paying less say £30-35k... but who's to say they will not make you redundant in 2-3 years? Then you would have worked for 70-90k salary over that 2-3 year period when you could have raked in £250k+ contracting. Not forgetting paying much less tax.
Surely self-respecting contractors should refuse these bogus offers and demand adequate daily rate. Stay strong contractors, don't give in to bogus 'stable' offers. They're a con.
Let's say you can contract your services on £400/day.
Instead of offering you a £400/day contract for 12 months, they offer you a 'fixed term contract' where they would pay you say £40k salary plus allow you to enjoy their company benefits for 12 months.
Do the maths- this is much cheaper for them. Instead of paying you potentially £400*5*40 = £80k they pay you salary £40k plus 'benefits'. Benefits at these companies have been seriously downgraded over the years. You're lucky to get an use of an outdated gym now. Forget free parking space, cheap lunch, free cups of tea etc.
Obvious downsides is that you get paid less plus you are taxed more on PAYE and can't offset expenses.
Surely self-respecting contractors should avoid these offers.
Furthemore, some companies are now offering 'permanent' jobs paying less say £30-35k... but who's to say they will not make you redundant in 2-3 years? Then you would have worked for 70-90k salary over that 2-3 year period when you could have raked in £250k+ contracting. Not forgetting paying much less tax.
Surely self-respecting contractors should refuse these bogus offers and demand adequate daily rate. Stay strong contractors, don't give in to bogus 'stable' offers. They're a con.
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