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Perm to contractor queries

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    Perm to contractor queries

    Hi all


    I'm about to start new employment back end of Feb/start of March, not in the IT sector but oil/gas (this is most relevant forum I could find, been a great help so far).

    My first query is that I am currently employed and my career change hinged on me completing a training course which required me to take 12 days holiday this month. I am also away to Florida for a week in Feb which required me to take 4 days (it's a shift system). So when I come to hand in my notice late Feb I'll have accrued 5 days but will owe my employer 11 days (132 hours). What's the normal policy regarding his? I'll get a bill off my employer? They don't know about the career change, I've basically been ducking and diving as the management in my dept are horrendous, all I can say is I have had a lucky escape. In a perfect world I'd have taken the course after leaving but I'd prefer to stay in employment right upto changing jobs.

    Second query is that as I will be a higher rate tax payer and subcontracting to a firm in Holland, I'm going to be taking advice soon from an accountant but in the meantime wondered if anyone has experience of Seafarers tax relief arrangements? I'll spend a large proportion of time on pipe laying barges, which HMRC classify as a vessel for the purposes of the Seafarers tax relief. In this instance would it be preferable to pay myself a higher salary and claim income tax relief or would the NI contributions negate any benefit of the income tax rebate? Primarily because I would like to get a mortgage in the next few years and having a salary of 8k will obviously be a hindrance.

    Thanks in advance.

    #2
    Originally posted by aai View Post
    Hi all


    I'm about to start new employment back end of Feb/start of March, not in the IT sector but oil/gas (this is most relevant forum I could find, been a great help so far).

    My first query is that I am currently employed and my career change hinged on me completing a training course which required me to take 12 days holiday this month. I am also away to Florida for a week in Feb which required me to take 4 days (it's a shift system). So when I come to hand in my notice late Feb I'll have accrued 5 days but will owe my employer 11 days (132 hours). What's the normal policy regarding his? I'll get a bill off my employer? They don't know about the career change, I've basically been ducking and diving as the management in my dept are horrendous, all I can say is I have had a lucky escape. In a perfect world I'd have taken the course after leaving but I'd prefer to stay in employment right upto changing jobs.

    Second query is that as I will be a higher rate tax payer and subcontracting to a firm in Holland, I'm going to be taking advice soon from an accountant but in the meantime wondered if anyone has experience of Seafarers tax relief arrangements? I'll spend a large proportion of time on pipe laying barges, which HMRC classify as a vessel for the purposes of the Seafarers tax relief. In this instance would it be preferable to pay myself a higher salary and claim income tax relief or would the NI contributions negate any benefit of the income tax rebate? Primarily because I would like to get a mortgage in the next few years and having a salary of 8k will obviously be a hindrance.

    Thanks in advance.
    Taken, but unearned annual leave, is usually deducted from your final salary.

    No idea on point 2, in terms of tax relief, but there's plenty of mortgage brokers out there for contractors.

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