'Accidental' contracor seeking umbrella

[ABB]

I was referred here from another forum, as I find myself in
an unusual(ish) situation. About a week ago what
I knew about contracting would have fitted neatly
on the back of a stamp, now it might fill half a postcard,
so apologies in advance for the numpty questions I will
be asking.

I am currently out of work (though not on benefits), having been laid
off from my permie job back inthe spring.
An old contact in the US got in touch, they have start-up company
of 6-7 people across the US and wondered if I would like to join.
Ther was no requirement to relocate (phew), so I would be working from home
in the UK, but for a US employer. They have no UK office.

A similar situation had arisen with some of my fellow collagues, and
they had resolved by going under contract (cheaper for both sides), but
did not use any umbrella company.

I suggested to the start-up folks that could be the best solution for me,
as they would avoid the vagaries of UK employment/tax law, with which
they seem to agree, and asked me to give them my rates.

Having researched IR35 and other issues, I prefer to use an umbrella
company, as my 'accidental' contractor status may not last that long.
I'll probably have to suffer IR35 for the short term, and used a suitable
figure based on my last salary as suggested by a rate calculator.

So far so good - the US folks are happy to interact with an umbrella
company, however there is the added complication of invoicing in UK
pounds, but the payee using US$.

So my questions are:

i) anybody have a similar experience, and can recommend an umbrella
company that could handle this kind of arrangement?

ii) will it bother the umbrella company that the contract 'came to me' directly,
and there is no agency involved? i.e. that they will be collecting money directly
from the US employer.

iii) will I be charged a premium for the US/UK currency conversion?

iv) can I rely on them to use 'today's' conversion rate?

v) are there any other possible complicating factors or gothca's
that my fretting has missed?

Any info would be gratefully received, with the exception of more brolly
photos.

Thanks in advance
ABB

[oracleslave]

So my questions are:

i) anybody have a similar experience, and can recommend an umbrella
company that could handle this kind of arrangement?

ii) will it bother the umbrella company that the contract 'came to me' directly,
and there is no agency involved? i.e. that they will be collecting money directly
from the US employer.

iii) will I be charged a premium for the US/UK currency conversion?

iv) can I rely on them to use 'today's' conversion rate?

v) are there any other possible complicating factors or gothca's
that my fretting has missed?

Any info would be gratefully received, with the exception of more brolly
photos.

Thanks in advance
ABB

I have never used a brolly but my take would be:

1) It doesn't sound that complicated to me and I would have thought most/all would be able to handle this. Ring a few up and test the water

2) I don't think they will give a fig that there is no agent involved.

3) Again probably best to ask but if they charge anything I would have thought it would be so minimal it would probably not be worth worrying about.

4) Probably best to have that stipulated in your contract if that's what you want.

5) Dunno, not done this before.

Good luck

OS

[Scotchpie]

...and used a suitable
figure based on my last salary as suggested by a rate calculator.
ABB

You haven't really thought this through have you? If you are basing your contractor rate on your past salary you will be severly out of pocket. Remember, contractors don't receive holiday or sick pay. We also have to pay employer's NI as well as employee's, and we pay the Umbrella for their services.

You should really be looking at a figure that is double your salary or alternatively work out all your costs, include 4/5 weeks holiday (when you will not receive any pay) and perhaps a week or two for sickness and then base your rate on that.

[thunderlizard]

well, that depends on how sophisticated his rate calculator was.

[ABB]

Well I used this one
One might surmise it either generates a random number, or
at least attempts to incorporate some of the things you mention
above.
Do you know of a better one?
ABB

[ABB]

I have never used a brolly but my take would be:

Oracle slave, thanks for that answer, I'll be calling a few to see
what the score is, but at least you confirmed that this is within
the realm of viability.
ABB

[Scotchpie]

Thanks for the link. To be honest I still use a pen and paper to work out my rate using the method I mentioned above but from a quick test just now it seems pretty acurate.

I would also be tempted to increase it slightly because as you do not intend to be a contractor for long, you may not be able to claim all your expenses.

[Beefy198]

I would also be tempted to increase it slightly because as you do not intend to be a contractor for long, you may not be able to claim all your expenses.

Or any at all if you're only going to do one contract.

[ABB]

I doubt there will be any, as I'll be working from home

[Scotchpie]

I doubt there will be any, as I'll be working from home

So your PC runs on fresh air? Working from home incurrs costs just as working from a client's premises does.

When working from home you need to factor in increases to your household energy bills. Having your PC on all day, your telephone bill (especially if your client is based in the sates), heating and lighting for the room you will be using. You may find that these fuel bills rise and with the fuel companies already warning us that they are to put up their prices next year you may have a nasty surprise when your electricity and gas bills start dropping through the door.

As this is to be your one and only contract, you will not be able to claim for these expences and so you may want to reconsider your basic hourly/daily rate to cover yourself.