Confusing work situation!

[Geek]

Hi All,

First time poster long time reader. I have a bit of a confusing work situation which I will try and explain the best I can, this is a new area to me and in need of some expert advise.

My current company (lets call them A) is a partner to a second company (company B). I applied for a contractor position at company B and was sucessful in getting the role but due to the relationship between the 2 companies company B needed to talk with my current employer first.

My employer has proposed that they contract me out to company B (acting as an umeberella company / agency) instead of me leaving and setting myself up. It seems though that my company wants the perks of still having me on their on books but want me to be as a self employed contractor.

> My employer wants to take Employers National Insurance from my day rate
> They have said they will not cover sick days or holiday pay (i understand being self employed this would be the case anyway but if I am still employed by my current employer apparently umberella compaines have the legal obligation to provide those)
> Will I be able to claim any expenses though my current employer as I would if I was self employed

I'm a bit confused with this situation and what it means, if anyone can offer any advise on this that would be great!!

Thanks

[cojak]

It means that they're trying to rip you off. Keep you on their books but not give you permie rights such as holidays, sickness etc.

They get the best of both worlds and you get the worst.

I wouldn't accept that situation if I were you. Go the whole hog as a contractor to Company B or forget about that new 'job' completely.

Or get a decent day rate out of them (which is definitely not the same as what you're on now).

Personally I wouldn't forgive Company A for trying this on and would find another job out of their sphere of influence completely.

[Geek]

hi cojak thanks for the reply!

Just what i thought..... unfortunatly! :-(

Just out of interest how much extra should a contractor make a month.

My current employer has given me a weekly breakdown of my net pay (as i will be invoicing them weekly but being paid monthly) and timsing the weekly by 4 to get a monthly figure its pretty rubbish in comparison to my currently salary - not that much extra

[northernladuk]

How can we give you a figure when you have told us nothing about what you do?

How long is a piece of string?

Have a look around job serve for roles that are similar to yours and you have your answer.

[Geek]

hi northenlad

i work in web analytics

I was asking if there was an average extra amount a contractor earns compared to perm, say an extra 500 or 1000 per month but i understand what your saying with how long is a piece of string as in some peoples cirumstances it could be a lot more!

[cojak]

It's less than you think my friend.

Remember you net pay is only when you work - you will not have permie benefits.

You need to work out your net pay they have given you annually and then calculate how many days you worked last year (extract your annual holidays, Bank Holidays and any days you were off sick - you can say goodbye to getting paid for those in the future). Divide one from the other to show you and you'll see a typical day-rate.

Use that to compare against jobserve.

They are knowingly ripping you off... Unforgivable for a 'proper' employer.

[Wanderer]

My current employer has given me a weekly breakdown of my net pay (as i will be invoicing them weekly but being paid monthly) and timsing the weekly by 4 to get a monthly figure its pretty rubbish in comparison to my currently salary - not that much extra

Take your annual salary divided by 1,000 and that's your minimum hourly rate as a contractor. Add 25% to that if they can't get you a contract which is outside IR35

So you are thinking, wow, that's a lot! Not it isn't. You've got IR35, accountants, HMRC, unemployment, sick pay, pension, lack of job security etc to factor in. If they aren't offering that much then they are ripping you off so walk away.

[Geek]

Thanks cojack

Ive worked out approx what I will get with and without this Employers National Insurance and I'm amazed how much better off I will be going self employed, your bang on they are really ripping me off!!

IMO If my current company wants to keep me as an employe to make them look better / bigger then this should be something they cover - and what benefits do I get paying it?? Nothing, dead money!!

Campany B does really care which route I go down (contracted out by my current employer or be self employed) so i think i will be better off going self employed!

[cojak]

Take a look at the first-timers guide to get you started.

Good Luck!

[Geek]

Thanks for the link, thats a great read.

Only thing is it doesnt mention on there going self employed (not set up a ltd company) is this something that isnt done that much anymore? Do people only operate on one of those three options?
or am I getting myself confused over all this!