Reply to: Tech Mahindra 2 Year Contract

[LondonManc]

As a very noobie contractor 11 years ago I got burned by Hays doing this. Never again.

We've all fallen for one of their tricks at some point.

[b0redom]

Ah... The old 'it's not the best rate but it's a long contract which is great' line. Makes me smile everytime they pull this one

As a very noobie contractor 11 years ago I got burned by Hays doing this. Never again.

[barrydidit]

Ah... The old 'it's not the best rate but it's a long contract which is great' line. Makes me smile everytime they pull this one

I told the last one that tried that "If I wanted to be paid tulip for a long time then i'd be a permie". He went off then.

[NotAllThere]

Of course when it's a short contract, that's also a reason for low rates.

[northernladuk]

I would question the fact is it really a 2 year contract, or is it working on a programme that is expected to last two years, they mention a lower rate due to logengivity but if you are on a weeks notice from the client that is a moot point from day 1

Ah... The old 'it's not the best rate but it's a long contract which is great' line. Makes me smile everytime they pull this one

[SimonMac]

I would question the fact is it really a 2 year contract, or is it working on a programme that is expected to last two years, they mention a lower rate due to logengivity but if you are on a weeks notice from the client that is a moot point from day 1

[LondonManc]

You are hardly going to carry out a single assignment in all that time, particularly with the likes of these agencies. You'll just be a body in a chair for them to do what they will with you which is clear D&C. I very much doubt they will honour RoS if they are just viewing you as a 2 year permie and your MoO isn't going to look to clever. That's the main pillars, the rest will follow.

Being at a client a long time isn't necessarily a bad thing but you've got multiple extensions giving you the opportunity to have new schedules of work to help you defend yourself. 2 years is just too long. It's coming close to being an FTC. 2 years carrying out PM duties as required is a job not a contract.

All this is arguable as IR35 is never straight forward but a 2 year gig? Wouldn't touch it with a bargepole.

There is another IR35 issue that you've nearly got to, as well as highlighting it with a 2 year gig - you put the whole contract inside IR35 rather than simply one of the 3-6 month contracts. If you choose to take the last 3 months as inside IR35 because you've become part and parcel, you can make significant changes to your engagement paperwork to differentiate, whereas if you drift inside IR35, the whole 2 years are exposed to IR35 taxation. Not a risk I'd want to take on.

[Agent]

I've had direct experience of TM as well as Infosys, Wipro etc. Payment is awful. We put a few people in visa an indian RPO (so another middle man), the contractors are all on 'pay when paid' basis. One guy got paid for his July work in November , it's bad news.

[northernladuk]

You are hardly going to carry out a single assignment in all that time, particularly with the likes of these agencies. You'll just be a body in a chair for them to do what they will with you which is clear D&C. I very much doubt they will honour RoS if they are just viewing you as a 2 year permie and your MoO isn't going to look to clever. That's the main pillars, the rest will follow.

Being at a client a long time isn't necessarily a bad thing but you've got multiple extensions giving you the opportunity to have new schedules of work to help you defend yourself. 2 years is just too long. It's coming close to being an FTC. 2 years carrying out PM duties as required is a job not a contract.

All this is arguable as IR35 is never straight forward but a 2 year gig? Wouldn't touch it with a bargepole.

[Xenonwave]

No one want to discuss the fact he's also inside IR35?

Can you clarify why you feel it is (or what makes it) inside IR35? I am interested in seeing if the conditions you think make so are applicable elsewhere. I've also been reading the various help pages here and unless there is some "reading between the lines" analysis I can't see what would make it so...or is it just that from the outset it is being positioned as a 2 year contract, as opposed to 3 month one that might get renewed/rolled 7 or 8 times?

Cheers
//Xenon

[MrMarkyMark]

Looking at and considering all factors, it must be one of the worst offers in the world

[cojak]

No one want to discuss the fact he's also inside IR35?

I alluded to that regarding expenses, but I was probably too vague...

[northernladuk]

No one want to discuss the fact he's also inside IR35?

[stek]

Thanks for the info. Just to be clear...in reading the 24 month advice elsewhere on the site, Contractors' Questions: Can I claim if a short gig ends up lasting 25 months? :: Contractor UKit would only be a problem if the contract was at a permanent workplace and was extended beyond 24 months.

//Xenon

The rule kicks as soon as you know the gig is 24 months, so this one is caught from day one.

[Xenonwave]

We've touched on expenses, but just as the OP is new I thought I'd point out that a 24-month contract is automatically caught out by the 24-month rule from day 1.
This means travel/accommodation expenses come out after tax/NI not before. Run away.

Thanks for the info. Just to be clear...in reading the 24 month advice elsewhere on the site, Contractors' Questions: Can I claim if a short gig ends up lasting 25 months? :: Contractor UKit would only be a problem if the contract was at a permanent workplace and was extended beyond 24 months.

//Xenon