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In the UK, the preference for consultants and contractors was always because it’s accounted for differently on the balance sheet. The consultants would actuall
by ljm 2y ago
In the UK, the preference for consultants and contractors was always because it’s accounted for differently on the balance sheet.
The consultants would actually cost more money overall, especially since they could be engaged longer than the average tenure of a full time engineer. But it wasn’t on the wage bill so it was fine.
In reality it was just really unfair to the full time engineers who, while they did get some benefits for being on board, did not get anything approaching equal compensation.
Even being outside IR35, which is the legislation that stops employees masquerading as contractors to lower their tax burden, they would fundamentally just be better-paid employees.
Of course, this is more on the individual level but even bringing in an agency… they could charge 1200 a day while the person on the job takes home about 400 of it if they’re lucky.