Home sweet hotel

IR35 Test

The good projects don’t come up often, and when they do it’s usually pot luck as to where you’ll be based. Quite often, the call comes at short notice and you have little time to get organised. There are some fundamental mistakes that contractors make when they work away from home:

  • Spending too much. It might be a great day rate you’ve managed to negotiate, but there’s always that small chance that you won’t get paid on time (or, worst case, at all) and if you go overboard with your expenses you could face a cash flow crisis a few months into the contract. No cash means no travel or accommodation, which means no work, which puts you in breach of contract! The lower your expenses, the longer you can last until your invoices are paid. No frills airlines and online hotel deals are a great way to keep costs down. Booking earlier also helps, as the prices tend to rise steeply the closer to your departure, check-in date.
  • Spending too little. You could take it to extremes, and hitchhike to your client’s site and live in a tent – but I suspect you might not be at your best during the working day. Resist the temptation to inconvenience yourself too much just to get a better deal.
  • Invoicing too late. It’s all about cash flow when the expenses are mounting up, so the sooner you bill, the sooner you can get paid. Some contractors leave it for months before they issue an invoice, thinking that they’ve got plenty in the bank to tide them over. Getting paid can take time, so think further ahead and bill at the first opportunity your contract allows.
  • Forgetting the paperwork. You can rack up some pretty hefty expenses in just a week, and it could be several weeks before you find out you don’t actually have a binding contract. Insist that all the paperwork is signed sealed and delivered by all parties before you even consider spending any more money.
  • Forgetting to enjoy themselves. The hotel at the airport might be handy for getting to your client’s offices, but who the heck wants to live at an airport? All work and no play makes Jack a dull programmer, and if you’re contract is going to last months, you need to get out, meet people, have some fun, do a bit of shopping, see some sights and “do as the Romans do”. Treating your evenings (and weekends if you can’t get back home every week) as a mini-holiday can help make the whole experience of being away from home a lot more bearable. Do your best to make friends at work and you may find yourself making the move a permanent one.

A Contractor from London

Published: Friday, February 24, 2006

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