Jumping from employee to self employed contractor!

[dogzilla]

I'm looking at taking at starting contracting in the next few weeks for £270 a day. I initially jumped at the opportunity because its well above my current rate as an employee.

I already have my own limited company that i have had for some time now as i have done some consultancy in the past and a few ongoing support contracts. So i'm hoping this is going to help me stay outside of ir35

Now the only problem is i've just found out the job is shift work and works out to around 16 or so 12 hour days a month. 3 days on 3 days off.

If i'm averaging £4300/month pre-tax what do you think is a realistic take home figure after tax? (outside ir35)

And does anyone here work a similar sort of shift and how do they cope with it?

[Sockpuppet]

A take home % is a falicy. It depends on what your expenses are. You will earn more than an employee, if you are outside IR35.

This is on your contract but more importantly your working conditions. Set rotas and set hours are not a good sign.

[dogzilla]

Well the thing is i'm not just working for a single client? I have 3 clients i work for quite regularly with support contracts and the odd additional hour here and there. From what i have read that greatly increases your chances of being outside of IR35. Also the contract is fairly short at 6months - i dont intend to be working much longer than that as the whole point of me going into contracting is to concentrate on my own business. (at the same time working short contracts to boost my income in the mean time)

[Diver]

dogzilla >Now the only problem is i've just found out the job is shift work and works out to around 16 or so 12 hour days a month. 3 days on 3 days off.

Sounds eerily like a short term employment contract to me!
read the wording of the contract very carefully, Ie. contract of service is very different to contract for service.

(see post on Returning as contractor)

You could be walking into IR35 spaghetti junction, and a Tax return nightmare.

Good luck on your new venture anyway

[cykophysh39]

A realistic take home figure, will be what your accountant advises. You must remember that your company will now be employing you, and that tjhe money that you earn is not really your money, but will be the companies. So your salary will be whatever your company assigns to yourself. So if you want to pay yourself the minimum, so as to keep the NI contributions to a minimum,, and then your company pay you interim dividends, then you can expect around £763 pounds a month. Take home

[ChimpMaster]

Dude just go to http://calculator.contractoruk.com/ and pump in the numbers.

[Bluebird]

Well the thing is i'm not just working for a single client? I have 3 clients i work for quite regularly with support contracts and the odd additional hour here and there. From what i have read that greatly increases your chances of being outside of IR35. Also the contract is fairly short at 6months - i dont intend to be working much longer than that as the whole point of me going into contracting is to concentrate on my own business. (at the same time working short contracts to boost my income in the mean time)

The IR35 test applies to EACH contract, not you as an individual.

as it stands shirt work and set hours are a pointer to IR35 and you will fail the test - you should pay FULL PAYE on your earnings.

For this contract inside IR35 you should take home 55-60% depending on your accountancy/umbrella fees and expenses.