Advise needed re fixed long term contract...

[vader2046]

Hi guys,

Have been contracting in the UK for the last 3 years or so through an Umbrella Co and I have recently been offered a fixed term contract role (18-24 mths).

They are offering 40k per annum plus 27.5 days holidays, pension etc. So it sounds more like a perm job than a contract role.

Question is, is it possible I can still get paid through my Umbrella Co, so as to maximise the tax effieciency plus still enjoy enjoy the benefits of having the paid holidays, pension etc?

Any advise is much appreciated. Thanks!

[NotAllThere]

...
Question is, is it possible I can still get paid through my Umbrella Co, so as to maximise the tax effieciency plus still enjoy enjoy the benefits of having the paid holidays, pension etc?...

What tax efficiency?

btw - you'll be an employee of the client, so no.

[Support Monkey]

What Tax efficiency ? you work for the umbrella company the only benefit of this is you can claim some expenses, if you take what is in effect a permanent job all you will lose is the ability to claim expenses and all you will gain is you will not have to pay an umbrella to process your payments and the paid holiday

all you need to look at is the benefits/pay as much as you earn currently through the umbrella if so take it if not leave it

[TykeMerc]

A fixed term contract is essentially a permie job with a set termination date. I'd call it close to being the worst of all worlds.

Some of the contracting risks, none of the benefits like rate or possible tax efficiency and none of the permie benefits such as pension contributions, redundancy rights and arguably employment rights.

Speaking from a purely personal opinion these fixed term contracts are taking the Michael very badly.

[moorfield]

WHS ^

It doesn't sound like a great arrangement.

But then again it depends on other factors - where it puts you after it has finished, what you expect your CV to look like and the opps it will take you on to etc. etc.

[SueEllen]

A fixed term contract is essentially a permie job with a set termination date. I'd call it close to being the worst of all worlds.

Some of the contracting risks, none of the benefits like rate or possible tax efficiency and none of the permie benefits such as pension contributions, redundancy rights and arguably employment rights.

Speaking from a purely personal opinion these fixed term contracts are taking the Michael very badly.

vader2046 states he is getting a pension.

But to be honest he should actually check out what is written in the contract rather listening to what is verbally said before accepting the post.

I've seen different things branded about as fixed term contracts and I also know people who have worked on them in the past in other sectors, who ended up with completely different benefits to one another. Some had pensions, flexi -time and got proper training there as others got sweet FA.

BTW you do get employment rights with fixed term contracts but the law around them is more complex. Also in regards to redundancy both employees on fixed term contracts and permies are paid statutory redundancy pay if they have over 2 years service.

[jmo21]

A fixed term contract is essentially a permie job with a set termination date. I'd call it close to being the worst of all worlds.

I'd call it exactly that, and I get quite annoyed with agents when they phone me about roles like this when my profile on a job site is marked as looking for contracts.

The names are similar, yes, but the agents should be able to deal with the difference and not bother contractors with them.

[suandi]

Hi guys,

Have been contracting in the UK for the last 3 years or so through an Umbrella Co and I have recently been offered a fixed term contract role (18-24 mths).

They are offering 40k per annum plus 27.5 days holidays, pension etc. So it sounds more like a perm job than a contract role.

Question is, is it possible I can still get paid through my Umbrella Co, so as to maximise the tax effieciency plus still enjoy enjoy the benefits of having the paid holidays, pension etc?

Any advise is much appreciated. Thanks!

Hi Vedar,

is your problem solved ? If so, how did you sort that out ?
I am in same situation - got an offer for fixed term contract
my visa belongs to Umbrella Co.

-S

[stek]

my visa belongs to Umbrella Co.

-S

In that case you've been bodyshopped and you are illegal in this country...

Care to name the Brolly?

[Wobblyheed]

Hi guys,

Have been contracting in the UK for the last 3 years or so through an Umbrella Co and I have recently been offered a fixed term contract role (18-24 mths).

They are offering 40k per annum plus 27.5 days holidays, pension etc. So it sounds more like a perm job than a contract role.

Question is, is it possible I can still get paid through my Umbrella Co, so as to maximise the tax effieciency plus still enjoy enjoy the benefits of having the paid holidays, pension etc?

Any advise is much appreciated. Thanks!

It's advice not advise in this context. Happy to help.