Stupid question inside role vs finding perm position

[_V_]

Having never worked an inside IR35 contract, what is the gain/aim of contracting inside IR35?

Assuming you can find a perm job that pays close to inside IR35 contracts (including gaps/bench time), why would you choose perma-contractor over a perm position?

Maybe I'm missing something, but what is exactly the point?

[eek]

Having never worked an inside IR35 contract, what is the gain/aim of contracting inside IR35?

Assuming you can find a perm job that pays close to inside IR35 contracts (including gaps/bench time), why would you choose perma-contractor over a perm position?

Maybe I'm missing something, but what is exactly the point?

For whom, the client, the agency or the contractor?

As for 2 of those it's obvious and for the contractor its a matter of preference....

[_V_]

For whom, the client, the agency or the contractor?

As for 2 of those it's obvious and for the contractor its a matter of preference....

For the contractor.

Assume I need money and therefore need to work.

I can look for a perm job or seek out inside IR35 contracts.

I cannot see the benefit unless inside roles pay significantly more than an equivalent perm position.

What drives people to look at inside roles? Excitement of not knowing when you will be canned and have no income? Paying a ton of tax this year, then having no money next year?

Someone needs to tell the blindingly obvious that makes it worthwhile for what it basically a gloried temp employee?

[northernladuk]

From what I've seen there aren't jobs paying inside rates, not for my roles. Doing a quick sum on the inside calcs, and we know they are woefully inaccurate, a £450 inside gig is equivalent to around £88k and there are no roles in what I do anywhere near that.

Also we work on gigs, when you get an inside gig it's for X months and you move on to the next. I never get why people have suddenly seen one inside gig and think it's all over. It's just one gig. There will be others that are outside. Can't pick them if you employed.

[_V_]

Okay so it really is the money?

Assume there was a local job paying £90K you would prefer that (and relative stability) over looking for inside roles?

Or is it the excitement of agents, interviews, bench time, live die repeat lifestyle that you crave?

[northernladuk]

Okay so it really is the money?

Assume there was a local job paying £90K you would prefer that (and relative stability) over looking for inside roles?

Or is it the excitement of agents, interviews, bench time, live die repeat lifestyle that you crave?

But that's quite an assumption though. There aren't that many roles paying that. They are there and many contractors on here have snaffled lucrative perm gigs to give up contracting. It's a possibility for sure. I guess I'd have to have a good hard think if something like that landed in my lap. But for Service Delivery at the level I want to work (can't be arsed with Head of anything nowadays) it won't happen. It's a very personal decision to go perm over contract so each person will have their own reasons to go perm or not.

Also, as I said, after this inside gig the next ones might be outside and be worth much more than the 90k role.

You can keep throwing figures at it until it's so obvious you've answered your own question but in general perm gigs don't pay outside gig rates and not all gigs are inside.

For me personally, I'm not ready to give up the contracting livestyle for perm. I get demotivated in long gigs so I am sure I'd be the same in perm so the lifestyle and way of working is part of why I stay (while the money is good).

[_V_]

It's interesting there are lots (I assume) local inside roles paying a lot more than local perm positions?

Which begs the question, why are these companies paying a lot more for inside IR35 roles, why no offer fixed term employment, or simply sack the person within 2 years?

None of this inside IR35 makes any sense to me? Surely it should be fixed term employment vs outside IR35 and the legislation should remove the concept of inside Ir35?

[Contractor for Life]

For me personally, I'm not ready to give up the contracting livestyle for perm. I get demotivated in long gigs so I am sure I'd be the same in perm so the lifestyle and way of working is part of why I stay (while the money is good).

For me its above, and not having to get involved in the tick box corp appraisal bull. I also think even working inside you could manage a degree of sticking to the piece of work you were brought in to do rather than being pulled from pillar to post as per most permie's.

That said i've not worked an inside gig yet and will continue to work and seek outside contracts until i'm forced to do otherwise, thats for a few reasons, if I go inside for my existing client network I dont want any risk of the HMRC coming sniffing and looking at pre-Arpil 2021 and I like to think that as long as I vote with my feet it will make clients sit up and listen.

Thankfully i've got myself into the financial position that I'm not forced to do what a client wants for the sake of work, when I set out as a contractor 11 years ago my first goal was to get a financial security blanket in place initially for bench reasons, i've never been forced on the bench and I realise now what a strong position i'm in having that security blanket.

[Sub]

Having never worked an inside IR35 contract, what is the gain/aim of contracting inside IR35?

Assuming you can find a perm job that pays close to inside IR35 contracts (including gaps/bench time), why would you choose perma-contractor over a perm position?

Maybe I'm missing something, but what is exactly the point?

What NorthernLad said - point is that if you can't afford bench time and still need some sort of income, but you still feel as a contractor, just take inside gig, that you can dump at earliest opportunity when new outside will be on horizon. Which means that good inside gig have short notice .

You obviosly can dump perm work too, maybe even faster if you wasn't there long - but that may not look good in your resume. Also, there could be points about competition and running your company in the perm contract. With inside gig you still stay a contractor, even your take home is severely impacted.

[northernladuk]

It's interesting there are lots (I assume) local inside roles paying a lot more than local perm positions?

Which begs the question, why are these companies paying a lot more for inside IR35 roles, why no offer fixed term employment, or simply sack the person within 2 years?

None of this inside IR35 makes any sense to me? Surely it should be fixed term employment vs outside IR35 and the legislation should remove the concept of inside Ir35?

You are mixing employment with day rate time and materials up. They are different. Costs, style of engagement, requirement, skill levels, flexibility etc are all different.

Inside and outside is a tax issue, nothing else. Clients still want highly skilled technical people for short term roles to provide skills they don't have with the flexibility to up and down size. You won't get the flexibility with an FTC and you certainly won't get the skills you need.

Consider inside and outside the same type of engagment, the difference is purely the tax then it becomes a bit clearer.