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Seriously??? My willingness to follow a request from my client makes me have a contract job?!? You willingness to insist on working could be equally construed as a lack of MOO, Mr. businessman :eyes
I really feel sorry for you ignoring an instruction from a client and then wondering why he tells you he will not pay for work he instructed you NOT to do.
Do some research on IR35, my gut says you were inside in your last contract because you expected it to be come permanent and you probably allowed Direction & Control. Make sure you get the new contract reviewed and go into the new arrangement, whether it be Umbrella or Ltd, with both eyes open.
I took over 2 and a half months off to enjoy the summer and travel, this wasn't because I was betwenn contracts, I actually ended the contract to do it. No point making loadsa money if you cant enjoy it :)
It's not penny pinching, it is good business planning and management IMHO. They know that their permie staff is either away or not as productive during that period and that their ability to manage their contractors is probably limited. Added to that is the fact that some of the permies will be...