Off the bench

[Bomber686]

Phone rings 16:30 on Friday - "Can you start Monday?"

Its been a while for me and I had to close my ltd company. The agency say's its a 4 week rolling contract deal, not the best but there is a serious dip on my bench. With the nature of the contract it may not be worth starting up another ltd straight away and I have 3 months b4 I have to declare I'm trading so can I have this time as a tax free period?

[Clare@InTouch]

You have three months to tell HMRC you're self employed, but that doesn't mean it's tax free for those three months. When you tell them, you tell them the actual date you started and then complete a tax return covering the whole period.

You'd have to check if the client/agent is happy with you being self employed too. Most will insist on brolly, agency PAYE or Limited.

A Limited can be set up within a day so it's still an option, if you have a reasonable expectation that the work will continue.

[Wanderer]

Phone rings 16:30 on Friday - "Can you start Monday?"

Make sure you get the contract paper work in place first thing Monday. Once you are onsite, agencies have a habit of dicking you around on the paperwork and when it turns up it's not what they promised. At least get the rate, duration and notice period agreed IN WRITING and do it BEFORE you go onsite.

As Clare says, you probably won't be give the option of self-employed as there is a risk to the agency/client if you engage this way. That leaves umbrella or LTD, go brolly if you are giving up contracting or LTD if you are in it for the longer term or you are going to earn much more than 25-30k this year.

If you go LTD, I'm sure there must be a highly efficient and helpful accountant out there who could get everything setup pretty quickly. Indeed, I've seen some very helpful accountants who even make time to post on contractor forums on the weekends and they could be worth a call!

[BolshieBastard]

Make sure you get the contract paper work in place first thing Monday. Once you are onsite, agencies have a habit of dicking you around on the paperwork and when it turns up it's not what they promised. At least get the rate, duration and notice period agreed IN WRITING and do it BEFORE you go onsite.

This is why I wont consider next day immediate starts or even immediate starts in 5 days or less. On the face of it, it's good to get a role but, you have zero chance of getting any meaningful contract review and changes incorporated never mind the stuff being sent to you being 'as stated.'

[BlasterBates]

If you don't have an alternative I think you can afford to be laissez faire with the contract. I always am. Generally the contract won't be ready in such a short time. I presume they've sent you a preliminary document. No point in playing difficult if you've been on the bench sometime.

If they were to renage on their verbal agreement that would be the time to get difficult. The fact that you've started and are working would put the agent in a very uncomfortable position if he were to try that on.

I don't think they will.

By the way a verbal contract is a valid contract.

...you might want to check some basic IR35 points, unless you intend in any case just to go umbrella.

[BolshieBastard]

If you don't have an alternative I think you can afford to be laissez faire with the contract. I always am. Generally the contract won't be ready in such a short time. I presume they've sent you a preliminary document. No point in playing difficult if you've been on the bench sometime.

If they were to renage on their verbal agreement that would be the time to get difficult. The fact that you've started and are working would put the agent in a very uncomfortable position if he were to try that on.

I don't think they will.

By the way a verbal contract is a valid contract.

...you might want to check some basic IR35 points, unless you intend in any case just to go umbrella.

All very true.

However, unless you get the agent to pay weekly, I wouldnt fancy anyone's chances of working 4 weeks (or more) before you get paid then, find that agent might be a bit dodgey!