Newbie with a couple of questions

**rd409** · 23 June 2011, 10:51

- Limited Company Opt Out Notice, the agent have given me this, but not asked me to sign it. What is this and should I sign it?

If not asked to sign, it is always better to not sign the opt out. Even if asked, you should try resist it.

- Agency rates, i have seen people mention this on the forum, I don't know what the agency mark-up is, should I? Is this important to me? At the end of the day I get the day rate that I want...

If you are happy with what you are getting, then it should not matter what the agent is getting. Although it would be nice to have an idea of the cut, so as to better negotiate an extension.

- Standard Service Week is 5 Professional Working Days per Week, describing a professional working day as "such hours as are reasonably requested by the Client and required for the Project." I'm guessing this means they can make me work 12 hour days?!!! Is it in my best interests to speak to the client to straighten this out or should i just wait until I get there to suss it out?

A standard professional day should be mentioned in the contract. End of. You may occasionally work for more than that as required by the work, but it should be defined in the contract. You should not be a clock watcher, but you should not be toiling like a permie.

- How much should I be paying myself a month to keep tax efficient? I have seen mention on this on the forums too...

It depends. Your accountant should be the best person to guide you. The range of salary range from £0 to £15k on average on this board. I have even seen contractors, who for multiple reasons withdraw everything as salary. With recommendations from your accountant, you need to find the right balance.

**northernladuk** · 23 June 2011, 10:53

Originally posted by MiniMani View Post

Hi everyone,

I'm a newbie starting a new contract in 2 weeks, I just had a few questions:

- Limited Company Opt Out Notice, the agent have given me this, but not asked me to sign it. What is this and should I sign it?

There is a sticky at the top of the business section discussing this in detail

- Agency rates, i have seen people mention this on the forum, I don't know what the agency mark-up is, should I? Is this important to me? At the end of the day I get the day rate that I want...

You should be in a position to negotiate, particularly if you have niche skills. If you have started it is too late though. If you are new and have a contract and are happy with the rate I wouldn't worry. Get some contracts under your belt first. New guys always find it difficult as you are a risk compared to seasoned guys.

- Standard Service Week is 5 Professional Working Days per Week, describing a professional working day as "such hours as are reasonably requested by the Client and required for the Project." I'm guessing this means they can make me work 12 hour days?!!! Is it in my best interests to speak to the client to straighten this out or should i just wait until I get there to suss it out?

There is a very long thread about this very topic on the forums at the moment started by ScragMeister

- How much should I be paying myself a month to keep tax efficient? I have seen mention on this on the forums too...

Get an accountant and let them sort this out and all the other questions new guys have. I used SJD and they have a good spreadsheet detailing everything and so far have been very helpful. If you don't know accounting it is likely they will save you their costs in the first year alone.

Thanks in advance and sorry if these questions have been answered elsewhere.
Mini

It is highly likely they have so make sure you read the links to the right, the newbie guides and use the search function.

**MiniMani** · 23 June 2011, 12:02

Thankd for your replies guys
I did have a look at the thread about the daily rate, but his situation was a little different in that the working hours were defined and they basically asked him to work them for free. Wheras my contract doesn't state working hours.

I haven't signed it yet, so should I ask them to add that in?

They do have a clause: In the event that the Standard Service Week is based on a set number of hours per week, then the Supplier shall have reasonable flexibility as to the allocation of hours worked on a daily basis in each Standard Service Week, provided that the full stated number of hours are worked in each Standard Service week and that any non-standard work patterns conform to the Client’s Project requirements and any Contract Site rules and regulations.

**northernladuk** · 23 June 2011, 12:59

As you saw on that thread there are many differing opinions on time worked. I personally prefer not to have fixed daily hours or work times on my contract. If the client is going to screw over with hours you work what he puts on your contract won't make much difference. They only out I think it gives you is you can wave your contract at him and say 'this is what I am contracted to do' but if you get to that stage it's too late already.

To me, and evey client I have worked at so far the term professional covers an undefined but reasonable amount of time AND flexibility from them in return for mine and has been given in all cases so far. Touch wood I haven't had a ball breaking contract yet.

All said and done it is what happens on the ground and some projects will be happy with you waltzing out after 8 hours every day, some will want their pound of flesh. I personally would just accept it and turn up to see what happens. If you start moaning about hours before even stepping foot in the place wouldn't go down well as a first impression.

That entry you have looks good. Seems to say you have flexibility in the times you come and go as long as you do your time. Might try add that to future contracts if nothing else like it exists.

**Old Greg** · 23 June 2011, 13:30

There is a very good introductory guide at SJD Accountancy - Accountants for Contractors, Freelancers, Consultants and Small Businesses. You need to register (for free).

**MiniMani** · 23 June 2011, 13:46

Originally posted by northernladuk View Post

As you saw on that thread there are many differing opinions on time worked. I personally prefer not to have fixed daily hours or work times on my contract. If the client is going to screw over with hours you work what he puts on your contract won't make much difference. They only out I think it gives you is you can wave your contract at him and say 'this is what I am contracted to do' but if you get to that stage it's too late already.

To me, and evey client I have worked at so far the term professional covers an undefined but reasonable amount of time AND flexibility from them in return for mine and has been given in all cases so far. Touch wood I haven't had a ball breaking contract yet.

All said and done it is what happens on the ground and some projects will be happy with you waltzing out after 8 hours every day, some will want their pound of flesh. I personally would just accept it and turn up to see what happens. If you start moaning about hours before even stepping foot in the place wouldn't go down well as a first impression.

That entry you have looks good. Seems to say you have flexibility in the times you come and go as long as you do your time. Might try add that to future contracts if nothing else like it exists.

Thanks for this. I think i'll just accept it and see, spoke to the agent and said its 8 hours a day anyway, the client is a particularly demanding and ball-breaking type (from reading on the forums) so that's why i was a bit worried. But i'm sure it'll be fine!

**cojak** · 23 June 2011, 14:47

Originally posted by MiniMani View Post

Thankd for your replies guys
I did have a look at the thread about the daily rate, but his situation was a little different in that the working hours were defined and they basically asked him to work them for free. Wheras my contract doesn't state working hours.

I haven't signed it yet, so should I ask them to add that in?

They do have a clause: In the event that the Standard Service Week is based on a set number of hours per week, then the Supplier shall have reasonable flexibility as to the
allocation of hours worked on a daily basis in each Standard Service Week, provided that the full stated number of hours are worked in each Standard Service week and that any non-standard work patterns conform to the Client’s Project requirements and any Contract Site rules and regulations.

QDOS is a specialist company who will look at the contract for you and explain what you should and shouldn't agree to from an IR35 and contractor perspective. I advise you to give them a call.

It will cost you but it's well worth the money.

**northernladuk** · 23 June 2011, 15:03

Originally posted by MiniMani View Post

Thanks for this. I think i'll just accept it and see, spoke to the agent and said its 8 hours a day anyway, the client is a particularly demanding and ball-breaking type (from reading on the forums) so that's why i was a bit worried. But i'm sure it'll be fine!

You will always get one along the way so why not get it over and done with from the start. Better that than get a 2 year feet under the table first thinking it is a peace of piss and then getting a wake up call.

Good luck.

**Brussels Slumdog** · 25 June 2011, 20:41

Averages out over the contract

Originally posted by MiniMani View Post

- - Standard Service Week is 5 Professional Working Days per Week, describing a professional working day as "such hours as are reasonably requested by the Client and required for the Project." I'm guessing this means they can make me work 12 hour days?!!! Is it in my best interests to speak to the client to straighten this out or should i just wait until I get there to suss it out?
Mini

I start off working maybe 7 hours a day while they sort out my lap top,logons etc. During the middle of the contract about 10 hours day then towards the end I struggle to find enough work for 6 hours a day.

Newbie with a couple of questions