Fixed rate contracts?

[Mustang]

In these difficult times we all need to be prepared to take what we can get with regards to new business, IMHO. One of the things that I have noticed an increasing amount of are fixed rate/term contracts (i.e. one for a set period at a fixed rate). Has anyone any experience of these as typicaly I have steered away from them.

In particular I have the following questions/concerns:

* Are they typically invoiced as normal on monthly basis?
* How do they fair with respect to IR35?
* Typically some form of employee benefits are included (holiday, use of facilies etc). Should these be specifically excluded from the contract to improve IR35 status?
* What are the pros/cons of such contracts?

TIA

[ASB]

In these difficult times we all need to be prepared to take what we can get with regards to new business, IMHO. One of the things that I have noticed an increasing amount of are fixed rate/term contracts (i.e. one for a set period at a fixed rate). Has anyone any experience of these as typicaly I have steered away from them.

In particular I have the following questions/concerns:

* Are they typically invoiced as normal on monthly basis?
* How do they fair with respect to IR35?
* Typically some form of employee benefits are included (holiday, use of facilies etc). Should these be specifically excluded from the contract to improve IR35 status?
* What are the pros/cons of such contracts?

TIA

As soon as you mention employee benefits it would appear you are talking about fixed term contracts of employment.

Personally myco used to do loads of fixed price work and that is good from an IR35 point of view. Provided of course the risks are real.

[Mustang]

As soon as you mention employee benefits it would appear you are talking about fixed term contracts of employment.

So does that mean they pay your tax/NI as normal? How does that all work?

[DaveB]

In these difficult times we all need to be prepared to take what we can get with regards to new business, IMHO. One of the things that I have noticed an increasing amount of are fixed rate/term contracts (i.e. one for a set period at a fixed rate). Has anyone any experience of these as typicaly I have steered away from them.

In particular I have the following questions/concerns:

* Are they typically invoiced as normal on monthly basis?
* How do they fair with respect to IR35?
* Typically some form of employee benefits are included (holiday, use of facilies etc). Should these be specifically excluded from the contract to improve IR35 status?
* What are the pros/cons of such contracts?

TIA

Pretty much all of these are fixed term Permie roles rather than a contract to supply services for a fixed period. I doubt you'd get far trying to persuade the clients HR dept to change anything.

[ASB]

So does that mean they pay your tax/NI as normal? How does that all work?

Basically it is the same as anyother employment except that your dismissal rights expire at the end of the fixed term. Quite a lot of "permanent" type jobs are dealt with in this way now. No redundancy....

[denver2k]

I had my first job after uni and it was "Fixed Term Contract" for 8 months. Everything was same as normal Permie employment(Graduate Pay, Annual Holidays, Paid Sick e.t.c).

Only difference was, it was subject to renew after that time.

[Mustang]

Basically it is the same as anyother employment except that your dismissal rights expire at the end of the fixed term. Quite a lot of "permanent" type jobs are dealt with in this way now. No redundancy....

Not brilliant but in the current market I will go for it - the wolf's bite is getting bigger!

I guess I will just have to talk to the accountant nicely!!