[sirsinsalot]

Don't touch umbrella setups. Don't go inside IR35.

Businesses either hire contractors for a liquid and expendable workforce...

Or they hire high skill people who take on more liability and charge for it accordingly.

Be in the second group. They don't use umbrella setups.

[jacobp100]

I found inside IR35 can be much more lucrative. It's big companies that have more money, can't hire enough perms, and just need stuff done

[sirsinsalot]

You have to ask why they feel the need to spend on contractors.

Also if you're inside IR35 then you're an employee for all intents and purposes but without the perks of a perm position.

Be a business, not an employee. If you look like an employee, regardless of the legal layout, you'll be remunerated like one.

Be a business. They make more money.

[danw1979]

> If you look like an employee, regardless of the legal layout, you'll be remunerated like one.

This just isn’t true. I’m currently with a FTSE100 financial institution and inside IR35 contractors make way more than perms at the same level of experience. They just don’t want headcount on their books, and still have work that needs doing, and they will pay to get it done.

The problem is job security at the moment.

If you don’t look like an employee, you’ll not get treated like one…

> Be a business. They make more money.

Completely agree, but most business owners make money by exploiting someone else’s labour.

[Silhouette]

I’m currently with a FTSE100 financial institution and inside IR35 contractors make way more than perms at the same level of experience.

That may be true but it's partly because financial services companies are infamous for not paying their PAYE developers very well and having very bad working conditions. Most people who can get £750+ assignment rates via an umbrella company in the financial sector weren't going to be making sub-£100k on salary in an open market either.

[badpun]

> You have to ask why they feel the need to spend on contractors.

They often have salary caps which don't allow them to fill all vacant positions. Whereas the same company's caps for contractors are higher.

[danw1979]

Absolutely agree. If you’re willing to maximise your pension savings, inside IR35 work with a higher day rate is usually more lucrative overall, even though you have to pay tax the normal way (gasp!).

Also, being on PAYE through an umbrella is less admin, no worries about HMRC, and lower overheads compared to Ltd - no accountants, business bank account, xero/sage (if you’re a DIYer), insurances, etc.