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Grr. Self-employed v Contract dilemma...


theduisbergkid
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I hate having to make decisions like this, but....

I've been UK self-employed for the last c.5 years, and very cosy it has been too, one main client has paid me handsomely and I've had enough small clients to keep me and the kids in spaghetti hoops plus leave enough time to dick about with cars/writing which I thoroughly enjoy and is starting to pay...

Now, my main client (people I've known for many years) are being bought out by a bigger company who have a policy of 'no freelancers'. They have a decent reputation and it's logical for them to have everyone on the books due to the industry they're in. Financially, I'd be OK as an employee of theirs, but I'll have to ditch the other small customers and (perhaps) the car stuff. I like the 'main' job, but love the other stuff which although is starting to pay isn't (quite) enough to live off full time - mainly on account of the 3 kids and trophy wife. On top of this, the tax issues for the new company will be a nightmare, as the new company are not registered in the EU so I'll have the taxman to convince I'm not some Cayman-Islands tax dodger, but a PAYE overseas despite (mostly) living here.

So, do I sign up and be a corporate chimp again (head), or tighten my braces and ditch my big customer to concentrate on the fun stuff (heart) ?

I've got a few months to work this out, I'd appreciate comments and suggestions from those who know me, and those who have had similar decisions to make +++

Rich.

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First instinct is to say drop the big company and go for it on your own, with a plan to build your small client base and develop the motor writing. I know we've not met yet but I think you're the right kind of person to make the best possible go of it.

However, right now it's a serious risk when you have a family to feed and a mortgage to pay.

Is there any way you could take your small clients with you and make them clients of the bigger company?

In the current economic circumstances, I'd perhaps be willing to cut them a deal. You'll sign up as their employee and drop the business related freelance work, on the condition they agree that you can continue with the motor writing stuff on the side. That way there is no professional conflict of interest and the only balance you have to find is time.

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Personally, I think you need to cut the big guy and go for it.

You only live once, if you don't go for it you'll always regret it, what's the worst that can happen?

If things don't go to plan, you have something to fall back on, it's not like you'll end up jobless bankrupt and homeless.

I do however thing it would be worth talking to the big Co, and seeing if they can compromise on how you stop providing them with your services, a managed withdrawal over a period of time, rather than a 'thanks a lot, bye bye'.

It's clear where your heart lies, and you already made the big jump when you left to go it alone all those years ago, I know we've had conversations before about how we both feel much happier since getting out of the corporate rat race and forgoing wealth over happiness, do you honestly think you'd be happy going back?

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Employment? Shiver. Scary.

Someone pointed out to me today that, technically, the light switches for my new office would need reconfiguring in line with my new partitioning, for health & safety reasons. I said that (a) I'd bring it to the attention of the H&S manager at the earliest opportunity and (b) that I had brought it to the attention of the H&S manager and that his reply was unprintable but negative.

Self employment FTW +++

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I'm sold on self-employment (have done it for years now) but I'm not convinced I can earn enough to keep my MX-5 in remoulds without 'Mr Big' though, and as useless as I am in the corporate environment, some of these guys have been personal friends of mine for over a decade and are going places.

This is not easy :(

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With family as motivation I don't think there is much that can't be done. When needs must, you just do.

As for the 'personal friends' bit, as much as this might sound very harsh - business is business. I do plenty of favours for people but I would never make a business decision based on personal friendships. If it can be done, I'll do it. But if I was deciding to go one way or another based on personal friendships then I'd be very wary. Would the personal friends think any less of you for not taking their option? I would very much doubt it if they're true friends.

Good luck with it anyway. It does sound tricky but at least it isn't a decision you have to make overnight.+++

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Flexible working 37 hour week, with 7 weeks holiday (5 weeks + bank ). With home working and a Co car.

And the acceptance that you can continue to run a business on the side.

What with the leave, and the fact that 37 hours is three and a half days work, you then have three and half days each week to juggle mini business, cars, drinking with the lads, sorting out the kids and some golden moments with the wife.

So what I'm suggesting is more or less the same as you have, but with a decent salary, a co car, some expenses, home working and (bonus) holiday time paid!

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I say you have something they want, so this should be on your terms. If they rely on you heavily for the service you provide then it isn't fair to call you a "freelancer", it's not like you're dipping in there a couple of times a year to perform a specific task is it? If you are doing work for them regularly enough for them to consider taking you on full time, then there must be an avenue of negotiation to have an x day contract with them which will allow you to continue doing your other work too. If your other clients aren't in the same business and there's no conflict in interest, then it would be unfair for them to stop you from working for them/yourself.

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The plot thickens. I can work from an office in London, or one in Yorkshire, whereas I'd rather stay put here where I'm 10 minutes from home...

Wow, not exactly being accommodating then? Doesn't sound promising - usually when a company/client stops trying to (quite literally in your case) meet you half way it's time to roll on to the next thing.

Is this an individual driving this by the way, or a general organisational change? We periodically have a 'No Contractors!' comedy enactment that in the real world is just used to get rid of contractors that we don't necessarily need, rather than all of them.

If you are doing work for them regularly enough for them to consider taking you on full time, then there must be an avenue of negotiation to have an x day contract with them which will allow you to continue doing your other work too.

Single client, via contract of services (NOT Service - that's employment) offers all the downsides of self-employment - no benefits, responsibility for tax etc. - with none of the upsides, I.e. Tax Avoidance and self determination. You're in effect a disguised employee and would be taxed as such. Pain in the ass really.

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Yeah, I know. Perhaps I haven't made clear that my customer is run by genuinely straight people, no hidden agenda, it's just that the company buying them have spotted I'm effectively a 'hidden employee' and want me on the books somehow. The industry they're in works like that, I don't think they're doing anything unreasonable. The new buyers already have offices in the UK whereas my customer are outside the EU. Having taken some advice, I think I'm going PAYE as an employee of the existing company, but will squeeze them for a part time contract so I can still indulge myself with the other stuff. It means paying no tax in the UK and if the chimp I spoke to at HMRC today is to be believed, this won't be an issue, as long as I can prove I'm paying tax somewhere (too tedious to explain further).

Or, just maybe, I'll jack the lot in and do something else :secret:

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