State of the Market

[Lance]

You underpay tax and submit a self-assessment at the end of the year. You can afford it with that income now probably get an accountant to do it for you. Previously it would have been 1 month of savings.

How do you propose this is done???
Forging a P45?
Fraudulently passing the same P45 to 2 employers.

The idea of taking two permie jobs is stupid enough, don't make it worse.

[Lance]

I got a friend contractor for 10+ years. He was struggling to find an outside IR35 contract at a normal for him rate, £600-£650.

His solution, that kind of works, got a couple of perms jobs at the same time, also is looking to take on another inside contract

He is currently getting:

- £50K perm
- £65K perm
- about to get a £400/day inside

Total would be 50+65+(70?) = 185K/year or eq to £800/day outside IR35! plus you get the 20 days holiday

Obviously this is remote only at the moment, and in a month or two it will require onsite 1-2 days a week.

What do you think about this? Is it sustainable? Is it "legal"?

it's stupid is what it is. Dishonest at best. Fraudulent at worst.
Anyway, if you double it all up that's 40 days paid holiday. If he's already taking the piss why not double down?

[SteelyDan]

Anyway, if you double it all up that's 40 days paid holiday.

I'm struggling with how that could actually work?

[Lance]

I'm struggling with how that could actually work?

It was a flippant tongue in cheek comment. Not to be taken seriously.

But it does have some merit....
As paid holidays are accrued by days you work, the individual taking them is taking 20 days for two employers so that is 40.
It has a cost of 40 days in total to two employers regardless of how they are used.
The individual could take annual leave from one company to provide a proper days work to the other, rather than taking the same day from both employers.

[LondonManc]

for a graduate that's good money.
For a 21 year old with 2 years experience that's good money.
I imagine the client knows what to expect for a rate like that. They're not that dumb.

That's the general problem with contracting - do clients ever tell the agencies that they want to pay junior rates for a junior contract dev or do they genuinely get misled that someone who would normally be on 500/day accept that and not jump at the first sign of a proper rate offer?

You rarely, if ever, see a Senior Java Developer or Junior Java Developer role in the contracting world, they're all just Java Developer. (just using Java as an example)

That said, after the call I had from a junior pimp yesterday, I think they've started scraping the paint off the bottom of the barrel.

[northernladuk]

That said, after the call I had from a junior pimp yesterday, I think they've started scraping the paint off the bottom of the barrel.

If they had to call you then I'd agree

[GigiBronz]

How do you propose this is done???
Forging a P45?
Fraudulently passing the same P45 to 2 employers.

The idea of taking two permie jobs is stupid enough, don't make it worse.

There is no legal requirement to submit a P45 to your new employer, that is what HR makes it look 'mandatory for you' so that they know what you were on previously and rest of the details.

You can just put the nino, total tax paid in an e-mail and send it to HR, solved.

Your whole post sounds a bit bitter, if people manage to run 2-3 gigs at a time, good for them. They should all quit at the same time and create a spike in demand.

[Lance]

You said....

You underpay tax and submit a self-assessment at the end of the year.

I said....

How do you propose this is done???

Now bear in mind that no P45 equals tax overpayment not underpayment.... and you then realise why I asked....
Are you sure that an employer will tax you based on information you provide rather than a P45? I reckon they'll put you on emergency tax code, and if no P45 arrives in a few months HR will sack you.

Your whole post sounds a bit bitter, if people manage to run 2-3 gigs at a time, good for them. They should all quit at the same time and create a spike in demand.

Not bitter at all. I have 4 customers right now. But I am a contractor not an employee. This is a question about employees.

[GigiBronz]

You said....

Now bear in mind that no P45 equals tax overpayment not underpayment.... and you then realise why I asked....
Are you sure that an employer will tax you based on information you provide rather than a P45? I reckon they'll put you on emergency tax code, and if no P45 arrives in a few months HR will sack you.

I am not sure where you are coming up with this. Nobody will fire you for not providing an P45, it is just nonsense.
You overpay or underpay and get it back at the end of the year. Emergency tax code is fine also.

How are you a good contractor and not have the ability to circumvent nonsense?

[eek]

The actual issue for the person with two full time jobs would be double use of NI allowances - although I'm not sure how that would play out.