Originally posted by PerfectStorm
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Previously on "2 offers: Accepted Lower Rate Public Sector (out ir35) vs Higher Rate Private Sector"
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Have you worked for the private company before?
Have you worked for other companies in the same sector as the private company?
Is the private company well-known?
Are you good at what you do?
How many clients have you got on your CV currently?
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Always take the higher rate. Low rate payers are often the worst clients.
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the net income, per month, after tax is £4k or £6k.
If you can
- live on £4k
- the lower rate role sounds like a really good role
- with plenty to learn,
- that will make you more valuable in the future, and
- you've forgotten why you went contracting,
then take the lower rate.
Otherwise take the higher rate...
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Originally posted by northernladuk View PostDue to the frameworks public sectors use its highly unlikely they will move. They will have approved rate cards and thats it. Quite different to some private sectors where you can negotiate.
Doesn't hurt to ask in this case, where there is "guaranteed" fallback.
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Originally posted by sal View PostAt such a massive difference in the rate, this is not a hard choice.
If you like the Public sector role that much you can try and squeeze some more dough from the Agency/ClientCo by saying you have a better offer on the table.
Personally I wouldn't consider going for £200 less no matter the roles specifics. Cash is king.
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At such a massive difference in the rate, this is not a hard choice.
If you like the Public sector role that much you can try and squeeze some more dough from the Agency/ClientCo by saying you have a better offer on the table.
Personally I wouldn't consider going for £200 less no matter the roles specifics. Cash is king.
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I'm sure there were fewer details (such as rate) in the OP when I first replied, unless my reading skills are patchy.
The rate difference means you could take the private one and operate as inside IR35 and still be better off than taking the public one.
The public one is safe as they are liable for determining whether inside or outside, though check the contract from the agency in case they have tried to offload any liabilities if the client is proven to have deemed incorrectly by HMRC. The agency as fee payer would be on the hook as things stand and not sure how a contract trying to offload that responsibility would actually stand up in court, but easier to not have to go down that road if can be avoided.
Get the private one reviewed to see where you would stand in terms of IR35 complications.
Potential contract length of either still factors if the private one is likely to be very short, which usually depends on the type of role you are doing for the client as to how long they may need you for whatever service you will be providing.
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You've listed nothing but he rate which has an obvious massive gap. How is there is a decision to make there?
You feeling a bit proud of yourself and just wanted to blow your own trumpet or something?
From that info take the high one.Last edited by northernladuk; 15 November 2018, 09:00.
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Originally posted by Kotelki View PostHi all!
I have 2 offers on the table at the moment:
1) Public Sector Outside IR35 - Initially I said yes verbally. contract not signed yet, waiting to be signed. Documents provided.
Rate: 300
This would be my first contract in public sector - is there any risk even if it's confirmed by client that it's outside ir35? I also had contract ir35 reviewed and it's outside.
2) Private Sector Outside IR35 - I didn't expect this one. I've just received offer, so nothing signed yet and no documents provided. I am waiting for them to send the contract to have a look at it.
Rate: 500
Distance from home and Length are the same in both offers.
Which one would you choose?
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Hobosapien thank you for your reply,
Rate difference is 300 vs 500.
Both 3 months with possible extension.
Contracting via Ltd.
The one with public sector has 1 worrying thing - warranty period after termination.
The one with private sector requires Background checks - so that will take a few more days to do.
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Depends. Consider the following to help you decide.
1. How much is the rate difference and which would you prefer if all else was equal?
2. What is the initial and likely length of both? If private sector one is most likely a short contract of a few months without much chance of an extension then very unlikely HMRC will bother to investigate a short outside IR35 contract.
3. Use the higher rate offer to see if there's room to negotiate a rate increase on the lower rate offer. Even though you've verbally accepted the lower offer tell them a better offer has come about and can they match it.
4. Get the private one reviewed for IR35 and see how much the insurance cover would be. If it works out cheaper than going with the lower rate then worth pursuing.
5. Are you contracting via a Ltd or brolly? If the latter then IR35 doesn't figure so can base the decision on merits of each contract rather than fear of the HMRC bogeyman.
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2 offers: Accepted Lower Rate Public Sector (out ir35) vs Higher Rate Private Sector
Hi all!
I have 2 offers on the table at the moment:
1) Public Sector Outside IR35 - Initially I said yes verbally. contract not signed yet, waiting to be signed. Documents provided.
Rate: 300
This would be my first contract in public sector - is there any risk even if it's confirmed by client that it's outside ir35? I also had contract ir35 reviewed and it's outside.
2) Private Sector Outside IR35 - I didn't expect this one. I've just received offer, so nothing signed yet and no documents provided. I am waiting for them to send the contract to have a look at it.
Rate: 500
Distance from home and Length are the same in both offers.
Which one would you choose?
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