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Posted: Mon Apr 07, 2008 11:54 pm
by animaleyes76
Quick question.

I potentially may become an IT contractor and my question is this.

As most contracts are say around 3 months, although my salary potentially doubles or more, my job security is also significantly less.

Is my IP likely to allow my payments to remain roughly the same on the basis that I will be saving 1 x months rent/bills/iva payments so that if at the end of 3 months work i still have the ability to pay everything for the next 3 months.

My worry is that they would put the payments up significantly which would then leave me in a weaker financial position and if further work did not appear then the IVA would fail. Surely they wouldn't be keen on payment variations every 3 months (especially as it seems to take them 2 months to even reply to a letter)

Posted: Tue Apr 08, 2008 1:24 am
by MelanieGiles
Your IP will need to review a detailed cashflow forecast with you to identify when the peaks and troughs of trading are likely to occur, but what you are suggesting is not unreasonable to me.