IT Contractors

NickK said:
Contractors work given a CAPEX contract - a fixed budget. This means that new build software etc and fixed pieces of work associated can be put in as capex vs opex.

Permys on the other hand are OPEX for the majority.. but most organisations attempt to find ways for charging as capex depending on the task.

There are taxation and perceived uncontrolled risk implications between capex and opex hence the push to make everything a capex expenditure.
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Yep. Usual tactic if a business is lining itself up for a sale, lose some permanent staff, reduce opex, pick up the slack with contractors. Seen this many times.
 
mid_gen said:
Yep. Usual tactic if a business is lining itself up for a sale, lose some permanent staff, reduce opex, pick up the slack with contractors. Seen this many times.
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I guess the amusing bit is when some of the people brought in at contractors, on juicy daily rates, are some of the people who were made redundant in the first place...
 
BusError said:
From my calculation, I'm going to be hit by about 4 to 4.5% more tax; it's still wildly better than perm, and I can easily get a raise of that amount to compensate...

Check contractorcalculator, they've put online a form that calculates it for you
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The calculator is here
 
alx said:
The calculator is here
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Thanks. I'm wary of posting /any/ url around here, given the trigger happy rules :-)

BTW, that 4.5% more tax is just for /next/ year, the following 2 years the corp tax will go /down/ by 2%, and thats 2% of the total, while the 4.5% are after tax, so it a lot less of a hit than it appears.

But again, the big corps makes a killing, and the small guys like us have to pay more taxes to offset...
 
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