fixed term contract help

**NotAllThere** · 14 November 2007, 09:21

A fixed term contract means that the duration is fixed. A fixed term employment contract is an employment of fixed duration, after which employment finishes.

From the information you've given, IR35 won't apply as you won't be working through a ltd co, you'll be an employee.

**TheFaQQer** · 14 November 2007, 09:23

Originally posted by NotAllThere View Post

A fixed term contract means that the duration is fixed. A fixed term employment contract is an employment of fixed duration, after which employment finishes.

From the information you've given, IR35 won't apply as you won't be working through a ltd co, you'll be an employee.

Yep - what he said.

Even if you work through your Ltd (unlikely) it's still essentially a contract of employment, therefore inside IR35. Most companies will pay you through their payroll as an employee, though.

**poser** · 14 November 2007, 09:28

so in the case that my ltd company has been running for six months to date - would I be better off making the company dormant for a year?

**TheFaQQer** · 14 November 2007, 09:41

Originally posted by poser View Post

so in the case that my ltd company has been running for six months to date - would I be better off making the company dormant for a year?

Check how the contract will be paying you. Then ask your accountant - not sure what it involves. There is always a chance that the contract will still pay you via your Ltd, so make sure you find that out first before doing anything else.

And congrats on getting the contract.

**poser** · 14 November 2007, 09:47

Its an offer havent accepted yet, as my existing contract doesnt expire till mid Dec, where only the other day I was celebrating getting my first extension!

Depending on the contract for company X, is whether ill go for it, future opportunities it stands me in alot better than my current gig even though money is less, was only going to stay at current gig ( which bores me immensely) so I didnt need to look at Christmas, as I figure december jan wont be a good time to be looking for anew contract.

**Sockpuppet** · 14 November 2007, 10:12

If your co has been running for 6 months make your first accounting period 18 months and that is almost like making the company dormant but a lot easier.

**chicane** · 14 November 2007, 11:03

Originally posted by poser View Post

A fixed term contracat has been offered to me for a year with by company X at £X for the year.

Sometimes companies and agencies refer to longer contracts (eg 12 months) as fixed-term contracts. I have no idea why.

As others have suggested, find out how you'll be paid. Also find out whether sick pay, holidays and other benefits (eg pension) are on the table - these are definite pointers towards employment and something you need to avoid.

**Bluebird** · 14 November 2007, 11:06

Originally posted by chicane View Post

Sometimes companies and agencies refer to longer contracts (eg 12 months) as fixed-term contracts. I have no idea why.

As others have suggested, find out how you'll be paid. Also find out whether sick pay, holidays and other benefits (eg pension) are on the table - these are definite pointers towards employment and something you need to avoid.

also look out for a "contract of employment" - a definite pointer towards employment......

**WindyAnna** · 14 November 2007, 11:20

Originally posted by chicane View Post

As others have suggested, find out how you'll be paid. Also find out whether sick pay, holidays and other benefits (eg pension) are on the table - these are definite pointers towards employment and something you need to avoid.

Ah but if teh rate seems lower BUT holidays are included, although it points to employment it could actually mean he would be better off. Need to get this checked out and then do the sums. If going to them for 12 months as an employee (with additional benefits that brings) means that you are increasing your future opportunities as a contractor then why avoid it?

fixed term contract help