Renegotiating contract rate - advice please!!!

[MonkeyWorld]

I've recently been quite successful negotiating a rate rise...got 10%, but timing is everything. You agreed a contract so you should wait until renewal time now to make your claim for a raise - the fact you are doing over and above what was agreed will work in your favour come that time. If you hate doing it then say so, give them a chance to work it out, otherwise give notice (if any - not a good IR35 pointer).

[Binky]

Oops! I meant Bluebird! Must have been thinking about kids TV programmes....

[Bluebird]

Thanks guys for your replies!
Thunderbird, what do you mean about "doing work not stipulated in your contract as being an IR35 pointer"?

One of the checks for IR35 is direction and control like a permie employee.

If you are doing stuff which is not in the contract between your co and the client to deliver, then the IR will take the stance that you are under "direction & control" of the client and are therefore a disguised employee rather than a "business operation in a businesslike manner".

This means that you fall INSIDE IR35 and IR will seek to tax you as an employee - ie all income @ PAYE rates rather than small income & dividends if this is the way you currently operate.

If you currently pay full PAYE via an umbrella solution - ignore my comments they don't apply.

ps - who's thunderbird ?

[Binky]

Thanks guys for your replies!
Thunderbird, what do you mean about "doing work not stipulated in your contract as being an IR35 pointer"?

[Binky]

"You can always ask now, but most likely the new rate will only be applied at the new contracting cycle.

Why don't you want to take on new responsibilities? When you can show your client that you're doing more and doing it well, no doubt they will say yes when you ask for more money for the next contract extension"


I've already been doing far more for about 6 months now, and don't mind doing extra (like you say, it looks good and I've had emails saying that I'm doing a good job) but they keep asking me to do more and more!!

[Bluebird]

Strictly speaking, you can refuse to do the new work that isn't mentioned in your current contract, and instead offer to start a new contract with more responsibility for more money. That's what the big consultancies would do.

also taking on work not stipulated in your contract is an IR35 pointer...

[thunderlizard]

Strictly speaking, you can refuse to do the new work that isn't mentioned in your current contract, and instead offer to start a new contract with more responsibility for more money. That's what the big consultancies would do.

[vhadiant]

You can always ask now, but most likely the new rate will only be applied at the new contracting cycle.

Why don't you want to take on new responsibilities? When you can show your client that you're doing more and doing it well, no doubt they will say yes when you ask for more money for the next contract extension.

[Binky]

Put up and shut up then or find something else.... I think I'll have had enough by the time my contract is up for renewal anyway.....I'm starting to remember why I left in the first place!!

[Ardesco]

You won't get an increase until renewal time.

Secondly if you are training up a permie to do your job you are unlikely to get renewed.

[Binky]

I am working on a contract where I was brought on to do x but I'm now doing a lot more. I've recently been asked to take on more responsibility, including training a new permanent member of staff that they are going to take on. I am thinking of asking for a rate rise as I do a lot more than originally agreed. My contract is not up for renewal yet, so I'm unsure whether or not this is the right thing to do. I have a lot of experience of doing this job as I previously worked for the company as a permanent member of staff for 6 years. Should I put up and shut up, or am I within my rights to ask for more money. Has anyone else been in this situation? Any advice is appreciated please!!!!