Reply to: Long Contracts

[unixman]

This thread is now printed out and nailed above my bed. Thanks for all the good information guys. I didn't realize so many people did long contracts.

To summarize some of the points made:

- some people get bored after 2 years or earlier, so move on to something new. I think I am in that category.

- Some have never done a contract over a year, as it happens.

- A few have done very long contracts. Long contracts can arise where the project is big enough. Eg rolling out a 5G mobile network could take years, and legitimately engage contractors that whole time.

- Long contracts can make you look like a permy, not because of the length as such, but because working practices tend to erode in that time. If you want to reduce the IR35 risk, watch your working practices (like NLUK) and get clear statements of work, preferably as part of the contract. And keep the right mind set. The tendency for you to become "part of the family" must be avoided.

Personally, I enjoy the feeling if independence that comes from contracting, and not becoming part-and-parcel is a matter of personal satisfaction, (as well as aligning with IR35).

[Gaz_M]

Three times now I've turned down a perfectly good extension offer at the 2 year mark. Nothing to do with T&S or IR35, just feel that's long enough in one place. For me contracting is about variety. That and lazing about for an excessively long (to my wife) time between contracts....

We have a winner!

[gigahoe]

Just finished almost 3 years on one contract.
Previous to that, I was at a major oil company for 16 years. Good rig.

FTFY

[uk contractor]

Well it has diddly squat to do with IR35 regardless, although as you say some clients, agents and contractors seem oblivious to this.

Funny you say that as I worked with someone who had been onsite for 6 years as a contractor as the client outsourced the position all that time & retained him every 3 months for 6 years....then he seemed puzzled why the HMRC investigated him & asked for a massive amount of tax he had evaded by not adhering to the 24 month rule via his offshore based tax avoiding accountant! I could not believe how naive he was at being caught out & being landed with a hefty 5 figure tax bill which also required immediate settlement!

[supersteamer]

Three times now I've turned down a perfectly good extension offer at the 2 year mark. Nothing to do with T&S or IR35, just feel that's long enough in one place. For me contracting is about variety. That and lazing about for an excessively long (to my wife) time between contracts....

[LP63]

Will be 10 years in April (9 years for HP) contracting at current site and have been trying to get out for years. It's easy to get too comfortable especially when its close to home.

[LivingUpNorth]

Had a few 18 monthers. I tend to get bored after 6 months tho. After 18 months I look for something else.

[rhubarb]

Just finished almost 3 years on one contract.
Previous to that, I was at a major oil company for 16 years. Good gig.

[FarmerPalmer]

Mention AWR to the client, and ensure that you are both aware of the issues for you both if caught as an employee.

My longest is over 4 years, but ensured RoS was established, tested and proven.

[Contreras]

Well I'm still to meet a contractor who has been on site for over two years who is not 'part of the furniture'. That's the very reason I went alone in the first place.

Yes, but...

I agree that it's down to mitigation and your behaviour. I disagree that being in a long contract makes you a disguised employee, though.

• I work from home
• I use my own equipment, having refused their offer of a laptop
• I have a pass that identifies me as a contractor
• I am identified in the system as a contractor
• I am recognised within the team as a contractor (three contractors, three permie in the team, and they all know who the contractors are )
• I work the hours that I choose to do, and am not controlled in any way, shape or form
• When I am unavailable for work, I inform the stream lead that I am unavailable. There is no notion of approval
• I have an unfettered right of substitution in the contract
• When there is no work to do, I do not invoice for that time
• They have been my client for 2 1/2 years and should continue to do so for another year at least
• I am working on a huge implementation which takes a significant amount of time to complete - certainly when I discussed the scale and type of implementation with the Oracle SVP for eBusiness Suite two years ago he said that he wasn't aware of any client in the world who had attempted to do what we are doing

With respect, WFH does make it easier to behave as an outsider and be seen as an outsider.

Justifying the use of one's own IT kit for example. No doubt you have the experience (gravitas?) to deal with it whatever. But being on-site for a couple of years would, for most people I think, require more effort to stay detached without causing alienation.

[Zero Liability]

It's the same rule, it's called the 24 month or temporary work place rule.

More here:

Temporary workplace rules for contractors

You do get quite a few contractors and agents who also fail to distinguish it from IR35, in addition to google search challenged end users...

[Goatfell]

28 months is my longest average is 24 months.


I heard from HR in several clients the 24 month rule is not strictly adhered to its just some get scared & do not understand IR35 so enforce the 24 months limit if you will not go perm!

What is this 24 month rule you speak of?

It may be just the wine on my part (hey it is Thursday), but the only rule I'm familiar with is with regards to T&S and it's got sod all to do with HR or IR35.

If the client's HR dept is terminating contractors if they don't go perm I'd be very worried as it shows a potentially awkward understanding of the difference between contractors, temps and staff.

[Zero Liability]

28 months is my longest average is 24 months.


I heard from HR in several clients the 24 month rule is not strictly adhered to its just some get scared & do not understand IR35 so enforce the 24 months limit if you will not go perm!

Well it has diddly squat to do with IR35 regardless, although as you say some clients, agents and contractors seem oblivious to this.

[jonskids]

Longest - 8 yrs
2nd longest - 6.5 yrs

[uk contractor]

28 months is my longest average is 24 months.


I heard from HR in several clients the 24 month rule is not strictly adhered to its just some get scared & do not understand IR35 so enforce the 24 months limit if you will not go perm!