ok to leave after 3 month contract?

[lukemg]

No obligation to stay but every chance you are burning the bridge behind, I would be honest, tell them about the other offer but not in any way infer they should match the rate, just leave it out there...

[redman123]

Id say its not all about rates. I started a role and did an interview within 2 months and for a 30% increase, this too with a big four firm. However I chose to stick to my current role not to irritate my client or burn bridges. The higher rate was 3 months with possible extensions and the current role was 6 months and was extended twice. It all depends. Like someone said its not guaranteed to last that long and also it screams red flags offering you £75 more but being a new start up your prob going to lead a team and take on more work.

[northernladuk]

Are one or both contracts inside or outside IR35?

There's a higher possibility of your mate's consultancy being outside IR35, at least.

Really? What makes you think that. The fact it's his mates contract alone make it less likely to be, not more.

[agentzero]

Are one or both contracts inside or outside IR35?

There's a higher possibility of your mate's consultancy being outside IR35, at least. Are they both remote? I'd do both. Be highly productive and learn to optimise your ways of working. If you can do three or four days on both contracts, happy days. You do need to be good at time management to do two at once, but as modern outside IR35 contracts are deliverables and not T&M, it's possible. Doing this will give you a great war chest and security after the 3 months is up on your renewal and work as security for your mate's consultancy, which is likely to be the gig of the two most likely to causes issues with work and payment, from the limited amount of information you've posted.

If they are both definitively inside IR35 gigs, then look at the maths of both and make your own choice on the validity of performing both gigs. If you have 7 children and find yourself wondering where all the hours and days went, don't try to take on too much. An example of dual project working that works is working on a late stage project while also working on an early stage project. The former ramps up to the usual end of project hell while the latter is usually discovery and research phase, with documents easily created when time allows.

[gixxer2021]

As your friend’s start up is a consultancy, do you know anything about their end client (s), and what the IR35 status would be? Also what kind of work, etc?

I’d not be too worried about your current client tbh, if they only offered a 3 month contract to begin with then they can’t complain if you leave at the end of it. Just do a good handover, etc. I’d agree with others though that negotiating a rise for the contract renewal if you decide to stay is a good plan, as you’re in a good position to negotiate.

[JumpingJack]

Ok thanks all, interesting responses...
Much appreciated!

[SussexSeagull]

I worked with a start up (well they had actually been going a few years but behaved like a start up, but I digress) and it was fun in as much as they adopted technology quite early but getting paid by them was painful and they acted like they were doing me a favour when they did.

Nothing wrong with a solid contract but ultimately for you to decide.

[ladymuck]

I did a two year gig with a start up consultancy run by someone I knew personally. I got a superb rate which priced in travel to Nottingham, that I never needed to do because Covid lock down started on my very first day.

It was overall a good experience and I'd work with them again but I would be cautious if you're new to contracting. Start up consultancies don't always have the cash flow and this was reflected in the terms I was working to. I was on 45 days, paid when paid. 90% of the time this ran perfectly. There were a few instances where the client messed around and didn't pay the consultancy on time and payments to MyCo were delayed. The most was by a week but, depending on the relationship your friend has with their clients, this could stretch out longer and you need to decide what level of risk you're willing to accept.

Also get the contract fully reviewed - not just for IR35. Another small consultancy I worked with had a terrible contract that was a cut-n-shut of goodness knows what. I refused to sign it and gave them the IPSE template which their 'solicitor' didn't like because they ultimately didn't understand the difference between employment terms and a contract for service. We got there in the end but it took some firm holding my ground.

[eek]

I'd not be leaving a solid gig to work for a start up I am afraid. Maybe I'm too long in the tooth to be chasing rates or taking risks but what's the stats for startups? 80%+ fail in the first year?

Also what about your IR35 status. I've very cold on outside gigs at small start ups. The fact he's offered you a year contract screams direction and control. They want you to become part of an all hands to the pump team to build it up. They aren't mature enough to have set roles or fixed statements of work, particularly for a year. You'll be doing anything they ask you as they grow. The 1 year sounds like they want you as a capable individual, not a supplier providing a set piece of work.

So on the basis you've got an extremely suspect outside IR35 status I'd say no.

And to echo TheDudes point. Duration of contract is irrelevant. They can walk you on the day if they want, it's there in the contract. Just the fact it's an off the cuff one year with no detail of the work that should last you that long sets the alarm bells ringing for me.

I'd be telling the agent you want a rate rise at your current client and stay.

The other contract is a startup consultancy - as such it depends on how they are handling finance to ensure you are being paid but there are ways to facilitate that which would work really well for everyone involved (Sonovate exist for a reason)..

[northernladuk]

I'd not be leaving a solid gig to work for a start up I am afraid. Maybe I'm too long in the tooth to be chasing rates or taking risks but what's the stats for startups? 80%+ fail in the first year?

Also what about your IR35 status. I've very cold on outside gigs at small start ups. The fact he's offered you a year contract screams direction and control. They want you to become part of an all hands to the pump team to build it up. They aren't mature enough to have set roles or fixed statements of work, particularly for a year. You'll be doing anything they ask you as they grow. The 1 year sounds like they want you as a capable individual, not a supplier providing a set piece of work.

So on the basis you've got an extremely suspect outside IR35 status I'd say no.

And to echo TheDudes point. Duration of contract is irrelevant. They can walk you on the day if they want, it's there in the contract. Just the fact it's an off the cuff one year with no detail of the work that should last you that long sets the alarm bells ringing for me.

I'd be telling the agent you want a rate rise at your current client and stay.

[TheDude]

You are not being offered a three month extension or a years contract - any contract is only as long as it's notice period assuming your client still signs your timesheet.

A startup consultancy sounds like quite a risk. If was going to take that risk I would tell my current client why I was refusing the extension - who knows they may match or beat your new offer.

[eek]

My current client offered an initial 3-month contract which is inow coming to an end. They have offered a 6-months renewal at the same rate. They are a nice bunch and the work is pretty interesting.

Former colleague has started a consultancy and has offered me another £75 a day plus a 1 year contract to go and work with him. That represents a 14% rate hike.

I guess money and contract length talks, but I'm worried about irritating my current client - they would like to extend me.

I would welcome any insights. Has anyone been in this position?

The only question that matters for you is looking at the contracts what is likely to go wrong and what extra options will you have at the end of the next contract?

[cojak]

It’s totally up to you, you are under no obligation to stay.

And I would look up the term Mutuality of Obligation as it’s relevant to you as a contractor.

[JumpingJack]

My current client offered an initial 3-month contract which is inow coming to an end. They have offered a 6-months renewal at the same rate. They are a nice bunch and the work is pretty interesting.

Former colleague has started a consultancy and has offered me another £75 a day plus a 1 year contract to go and work with him. That represents a 14% rate hike.

I guess money and contract length talks, but I'm worried about irritating my current client - they would like to extend me.

I would welcome any insights. Has anyone been in this position?