to renew or not to renew

[XLMonkey]

I'm not so much asking everyone if I should stay or go (although it's interesting to hear people opinions), my original concern was around IR35 and if staying at a client for more than 2 years had any more of a negative impact on that aspect.

Don't think that there is any impact on your IR35 status due to contract duration - there are lots of firms that have long term contracts lasting many years with the same customer. The thing to be aware of is whether you allow yourself to get lazy in the way you manage the relationship. As long as you are keeping a sensible audit trail that shows you are working on business to business terms throughout, there should be a problem.

[Lockhouse]

I'm in exactly the same boat. I'm being asked to stay for another 6 months after 2 years. My travelling expenses are £750 per month, so I want at least an increase to cover those and then some - also I'm asking the client for a Confirmation of Arrangements letter to confirm the real working practices for when the IR come calling. There's a couple of other little things as well, but the important thing to remember is renewal is the only opportunity to change the status quo so make the best of it. Or Leave.

[Gonzo]

I'm not so much asking everyone if I should stay or go (although it's interesting to hear people opinions), my original concern was around IR35 and if staying at a client for more than 2 years had any more of a negative impact on that aspect.

In this case I think if I can get a good rate increase and some more flexability from working from the home office then I might give it another 6 months.

I don't think that the 2 years will make any difference on the IR35 front. Either you have been an expensive temp for 2 years and you have been IR35 fodder since day 1, or you are contracted for specific deliverables and you can do that for as long as you want provided you get advice on your contracts and are advised that they are outside IR35.

Usual disclaimers - I am not an accountant, I know nothing about the law, the value of your investment and the income from it can go down as well as up etc...

[Viktor]

It was £60/day mileage at my last gig...

Jeez, where did you find a lorry driver contract???

[stacks]

I'm not so much asking everyone if I should stay or go (although it's interesting to hear people opinions), my original concern was around IR35 and if staying at a client for more than 2 years had any more of a negative impact on that aspect.

In this case I think if I can get a good rate increase and some more flexability from working from the home office then I might give it another 6 months.

[rootsnall]

Could you improve on the location and rate by moving on ? If you can't guarantee that and you can still keep your eyes open for at least 90% of the time I would hang on in there.

[Sockpuppet]

renew. Better the devil you know. Its a year more at a higher rate and it you are happy why leave?

Yes it means loss of travelling expenses but are you all such a bunch of oney grabbing whores that the £5 a day or what ever you will get affects you that much.

When you have the contract you want to stay, when you dont have one you wished you would have.

[ratewhore]

Sorry to sound a bit harsh but are you really asking us here on the board whether you should stay at your gig or not?

Make your own mind up, you'll feel better in the end...





renew

[MrsGoof]

Cons:
Loss of travel allowance - although you could perhaps mask this by agreeing to a new contract rather than an extension & start up a new company to service

No can't do this it's a personal expences not a co. expences.

I had a similar issue a year or 2 ago and just ensured that my rate rise included
a)money to cover lost expences
b)a rate rise
c) more felxible working env (i.e. more time WFH)

[Troll]

A tough one (esp with the pre-agreed rate rise) personally I think 2 years is the tops and contractor churn is good for the industry (as long as they don't get the indians in to replace) - I have done longer once but became jaded and swore never again

Depends how easy you think it will be to pick up another one

Pros:
Guaranteed years work at increased rate
No 'fitting in' to a new contract
You are probably a key player after 2 years & have lots of business knowledge


Cons:
Loss of travel allowance - although you could perhaps mask this by agreeing to a new contract rather than an extension & start up a new company to service
You are becoming too comfortable
It's all too easy

[stacks]

Been at a client now for almost 2 years and was all set to leave at xmas until yesterday! The client told me he wants me to stay for the next 12 months (2 more 6 month renewals) and to make sure I did I should ask for a rate increase and that as long as it wasn't silly money he would pay up.....didn't see that one coming!!

Now I now after 2 years I cant claim any expenses but is there anything else I should consider from an IR35 perspective? At the last renewal I had the contract and working situation reviewed and got the all clear but does this change with the 2 years thing?

I also realise that 2 years is probably more than enough to spend on a contact and that I should probably move on but the open invite for a rate rise has thrown me a bit.

Any advice appreciated!!