Reply to: Renewal / Rate Increase / Role Change

[northernladyuk]

That has been offered without me asking for it, just rejecting the proposed straight up renewal due to "markets having moved" etc.

It's the first offer and I suspect there is another 25 hiding under the table - I know that I am held in high regards and seen a potential key man, not only to immediate projects but wider org changes.

I am not sure whether to play the I'm-a-tough-businessman negotiating game of never accepting the first offer, or be the dutiful-submissive-IT-worker and not look the proverbial gift horse in the mouth.

I am fairly certain there's another 25 but maybe it would seem greedy/petty to quibble over? How would you approach it?

There is a school of thought which goes 'Leave the last 10% for the greedy bastards'. On the other hand, 25 pd if 5k p.a. pre-tax, so not trivial. On balance I would probably take the 100.

I've got a renewal conversation coming up in January with a change of role (more a confirmation of the role I'm actually doing). I have developed the project cost model do I know there's a potential extra 30% under the table, and I have alternatives.

[silverlight1]

I suggest you pull out your contract and carefully draft an email:

my contract said I do x,y and z

The work now requires I do x,y,x + a, b and c

In addition I contributed towards the project being delivered blah, blah blah and helped secured next project for consultancy.

If they tell you to stick then get another gig or lump it.

We all think we are underpaid and there's always rumours of other guys being paid £2k per day.

Personally my contracting approach is about longevity and I've taken lower rates to stay in contract on occasions. In 12 years I've only had a few involuntary weeks on the bench.

Everyone has diffferent agenda's and approaches to contracting but there is some sound advice from other posters about the way you view youself and IR35

[aft]

Quote them an extra 100 pd and be prepared to walk.

That has been offered without me asking for it, just rejecting the proposed straight up renewal due to "markets having moved" etc.

It's the first offer and I suspect there is another 25 hiding under the table - I know that I am held in high regards and seen a potential key man, not only to immediate projects but wider org changes.

I am not sure whether to play the I'm-a-tough-businessman negotiating game of never accepting the first offer, or be the dutiful-submissive-IT-worker and not look the proverbial gift horse in the mouth.

I am fairly certain there's another 25 but maybe it would seem greedy/petty to quibble over? How would you approach it?

[BrilloPad]

Can you share the news on April 2018. I ve not heard of that change

http://forums.contractoruk.com/futur...g-we-know.html

[ladymuck]

Can you share the news on April 2018. I ve not heard of that change

hey sockie it's called taking a punt on what'll be in the autumn statement.

I don't think it'll happen in 2018 but it's pretty much a when not an if

[ladymuck]

Having been stuck in a job that I didn't enjoy and kept being paid more to stay, I can safely say this: the money does not make a crap job any less crap. It will drag you down eventually.

By all means ask for more money. The worst they'll say is no.

Decide before you ask whether no = walk at the end of January. How long can you last if you can't line something up to start in February? Many budgets refresh in April if you can hang on and take that break to get the washing up done.

I would be getting my CV out and start tapping up contacts.

[LondonPM1]

This is rubbish advice, but since we will all be inside IR35 come April 2018 I can’t get too excited by it.

Can you share the news on April 2018. I ve not heard of that change

[BrilloPad]

This is rubbish advice, but since we will all be inside IR35 come April 2018 I can’t get too excited by it.

As long as that?

[northernladuk]

The rate my Ltd Co charges clients is higher for roles requiring leadership. I still get paid the same.

Now that's out the way back to my question.

What's the best (correct) way to communicate this to the client? via agent or directly?

Who pays you? Who do you have the contractual relationship with? Got to start thinking like a business and understanding the players in the game. Keep washing over the IR35 issue but as Cojak says come April it might not be a problem... except those caught retrospectively.... but that's for another discussion.

Don't be too surprised if you don't get a big an uplift of your rate as you expect though.

[aft]

One is a rate you charge your client, the other is what you pay yourself.

Taking on more responsibility can also be called Direction & Control so should be handled carefully with the correct paperwork and negotiation. It's too late to start doing what you are told and then trying to get it all sorted later. Working practices will say your under D&C.

The rate my Ltd Co charges clients is higher for roles requiring leadership. I still get paid the same.

Now that's out the way back to my question.

What's the best (correct) way to communicate this to the client? via agent or directly?

[cojak]

Ignore this advice. Most people doing contracts are disguised employees and trying your best and being ambitious is well encouraged.

Some people here will tell you they are real business because they have some business cards or do ir35

Ir35 is so grey and vague no one knows much about it. Asking for a pay rise and taking on more responsibility is a good thing and you can always ask for a rise

This is rubbish advice, but since we will all be inside IR35 come April 2018 I can’t get too excited by it.

[northernladuk]

Ok let’s argue over semantics.

Pay rise equals increased contract rate. Does that make you happy now we call it increased day rate

It's not semantics. One is a rate you charge your client, the other is what you pay yourself. It's a mind set and the correct way of thinking. Get stuff like this right in your head other aspects of contracting will naturally fall in to place.

Every contract renewal should be a chance to evaluate pay rise or increased rate not least because of inflation. Taking on more responsibility equals doing more work in contractor talk but I prefer not to talk in riddles

Inflation.. On 3 month gigs? You are off your rocker.

Taking on more responsibility can also be called Direction & Control so should be handled carefully with the correct paperwork and negotiation. It's too late to start doing what you are told and then trying to get it all sorted later. Working practices will say your under D&C.

[LondonPM1]

That's the worst bit of advice I've seen in a longtime. I mean... Pay rise? Honestly.

Very poor.

Ok let’s argue over semantics.

Pay rise equals increased contract rate. Does that make you happy now we call it increased day rate

Every contract renewal should be a chance to evaluate pay rise or increased rate not least because of inflation. Taking on more responsibility equals doing more work in contractor talk but I prefer not to talk in riddles

[northernladuk]

Ir35 is so grey and vague no one knows much about it. Asking for a pay rise and taking on more responsibility is a good thing and you can always ask for a rise

That's the worst bit of advice I've seen in a longtime. I mean... Pay rise? Honestly.

Very poor.

[stek]

Ignore this advice. Most people doing contracts are disguised employees and trying your best and being ambitious is well encouraged.

Some people here will tell you they are real business because they have some business cards or do ir35

Ir35 is so grey and vague no one knows much about it. Asking for a pay rise and taking on more responsibility is a good thing and you can always ask for a rise

Ignore this advice.

Just ignore it.

One needs to mitigate themselves from an unnecessary tax burden, like the so-called 183 day rule. How's that going BTW?