(another) First Timer looking for advice pls!

[ft101]

HI there

Just found the site - pls be gentle - and had a look around but looking for a expert opinion on a contract i'm about to get into, and specifically if i'm being stupid with this (rate, expenses, ir35 etc). I'm a first time contractor.

Its about 400pd and short-term so about 2 months work. Its about 110 miles from where I live, so i'd be taking short term accommodation (approx 100gbp per week) and covering these costs myself.

I would work from home when the project work allows (decided by me but mostly the hours are 9-5 to fit in with the needs of the business). The work is a QA type testing by the way.

I may go back to permanent after this, but not sure so in the first instance i'll go with a umbrella company. More tax paid for sure, but i'm not too concerned by this at this stage. If it works out, and I can get further contracts (will likely always need to travel) then i'll go the Ltd route.

I don't mind the travel aspect as there is no work where I live (perm or contract) and the money seems acceptable to me.

Does this all sound sensible?

Any major items to watch out for?

Any and all advice, opinions appreciated.

Thanks!
Brian

[Ravello]

The first thing to be aware of is that if you're going down the Umbrella Co. route you don't need to worry about IR35 since your earnings will be paid as a salary by the Umbrella.

Rate-wise the amount seems reasonable for the role, but it depends on a whole lot more, i.e. location, sector, your expectations and current income. You're really the only person who can decide if the rate is right.

Expenses: If you're living away from home those costs (£100 pw in your example) can be recharged via the umbrella as expenses, as can an evening meal (and breakfast). You can also charge travel costs accordingly. Make sure however, that all of this is receipted, and ignore claims from any Umbrella Co telling you that you don't need receipts to claim £x per day. They may have an agreement not to provide receipts to HMRC but this doesn't extend to you.

[Money Money Money]

Originally Posted by ft101

HI there

Just found the site - pls be gentle - and had a look around but looking for a expert opinion on a contract i'm about to get into, and specifically if i'm being stupid with this (rate, expenses, ir35 etc). I'm a first time contractor.

Its about 400pd and short-term so about 2 months work. Its about 110 miles from where I live, so i'd be taking short term accommodation (approx 100gbp per week) and covering these costs myself.

I would work from home when the project work allows (decided by me but mostly the hours are 9-5 to fit in with the needs of the business). The work is a QA type testing by the way.

I may go back to permanent after this, but not sure so in the first instance i'll go with a umbrella company. More tax paid for sure, but i'm not too concerned by this at this stage. If it works out, and I can get further contracts (will likely always need to travel) then i'll go the Ltd route.

I don't mind the travel aspect as there is no work where I live (perm or contract) and the money seems acceptable to me.

Does this all sound sensible?

Any major items to watch out for?

Any and all advice, opinions appreciated.

Thanks!
Brian

Try these, the mrs offset 5/7ths of her alternative accommodation.

[Olly]

Why not claim all the temporary accommodation as a business expense?
I do.

[The Lone Gunman]

Originally Posted by Money Money Money

Try these, the mrs offset 5/7ths of her alternative accommodation.

You can claim 7/7 if you can justify business use only. If you dont use it at weekends, or only stay in it when at work then it is all claimable. You can also justify it as the most cost effective solution if there are no B&Bs around for less.

[ft101]

OK thanks for the info all

Regarding the expenses I would be in a hotel monday through to Wednesday night, or possibly Thursday night so expect to expense all of it. I am going to try and deliver my services monday to thursday in future to enable me to habe fridays 'off'.

[protobyte]

Please excuse the ignorance of this question because I am very new to contracting myself...

When Ravello says that expenses can be "recharged via the umbrella as expenses", does this mean that the money spent is repaid to you via the umbrella co?

Or does it simply mean that you won't have to pay tax on this expenditure?

I'm a little confused!

[DiscoStu]

Originally Posted by protobyte

Please excuse the ignorance of this question because I am very new to contracting myself...

When Ravello says that expenses can be "recharged via the umbrella as expenses", does this mean that the money spent is repaid to you via the umbrella co?

Or does it simply mean that you won't have to pay tax on this expenditure?

I'm a little confused!

The latter, unless the client is paying for expenses, in which case your umbrella will invoice the client for them on your behalf and then pay them to you.

[BolshieBastard]

£400pd for a first time test analyst!?

Where are these jobs!?

EDIT, perhaps more importantly, who are the agents?

[RichardCranium]

Originally Posted by BolshieBastard

£400pd for a first time test analyst!?

Where are these jobs!?

EDIT, perhaps more importantly, who are the agents?

And able to work from home too.

Originally Posted by ft101

I may go back to permanent after this

If you can get contracts like that, WTF would you ever go back to permie for?