Inside contract to PAYE FTC in the same role and client

[sreed]

I’m currently on an inside contract at a mid-sized FS firm, it’s due to end 31 July.

The head of the dept had a chat with me yesterday about contract extension. Apparently the co has made an exec decision to end the use of day-rate contracts except for very select <6m super specialist roles and been given a hard deadline of Q1 (30 June) to implement this across the business.

I’ll exceed 6m soon and anyway my role (generalist PM) wouldn’t meet the threshold.

He wants to keep me on to Christmas but the only way he can do that beyond 30 June is on a PAYE FTC.

Rem wise, he agreed to use the current day rate and convert it as is (46 weeks) to a PAYE salary which (I think) leaves me even or slightly better off on a cash basis. They do quite generous pension matching as well for employees so if that applies to PAYE FTCs, that’s an added bonus.

Notice will go up to 1 month on both sides but otherwise everything else remains exactly the same work wise.

The extension to Christmas will almost certainly be the last as they’ll have a PM return from his career break and the major programme going on now will likely have completed.

The alternative is my current contract ending on 30 June. It’s good pay, good experience and I really don’t fancy looking for a new contract during summer!

Other than the 1 month notice, I can’t see any obvious negatives to ‘extending’ my stint on a PAYE FTC? Anything that might be an issue here?

[northernladuk]

Exactly the same question asked here.
https://forums.contractoruk.com/busi...side-ir35.html

and CUK article on it
https://www.contractoruk.com/private..._contract.html

[malvolio]

Check that FTCs can have employee pensions arrangements... A while since I looked so this may have changed.

You will get a proportionate annual holiday allowance of course, which boosts the salary a bit.

The other point is that an FTC has a hard finishing date, which can be good or bad!

[sreed]

Thanks both! The CUK article is talking about outside-FTC but the thread is somewhat relevant. But still informative.

I’m ok with the hard end date given that there’s a good few months to get there. We’re moving home by the end of the year so it kind of makes the mortgage process a bit easier, I think.

Holidays are use it or lose it so I don’t think there’s a monetary benefit but I tend to only work a couple of weeks over summer so I guess it’s all the same.

[northernladuk]

Check that FTCs can have employee pensions arrangements... A while since I looked so this may have changed.

You will get a proportionate annual holiday allowance of course, which boosts the salary a bit.

The other point is that an FTC has a hard finishing date, which can be good or bad!

Yes an FTC must be offered a pension on the same basis as a perm where possible. In the old days the benefits packages can be different. A long time ago FTC's at Bupa didn't get healthcare which was a bit surreal but times have caught up and the benefits will largely be the same.

What do you mean a hard finish date? An FTC can be extended and extended like any temporary contract but the contract changes after two years at which point you get other employment rights like unfair dismissal, statutory redundancies etc. They can also be renewed for up to four years at which point you are considered a permanent employee...

BDYOR on the finer points.