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Newbie Contractor--Need Clarity on Contract Agreement

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    Newbie Contractor--Need Clarity on Contract Agreement

    I have just secured my first contracting role and have received the contract. 3months rolling contract. Before I sign it I have a few questions I need help with. Btw the company is not providing me with a credit card.
    I have found some of the answers to some of my questions in this forum using the 'Search' function but I have not found the answers to the questions below;

    1)I am contracting as a ltdco and getting a daily rate but the client says they will deduct PAYE & NI from me. Can this be done? I thought as a ltd company that was my responsibility.
    2)The job involves working abroad at times, what would be a reasonable daily subsistence Per diem amount both for UK and Overseas (outside the EU?
    3)Although the job involves working abroad, the contract does not clearly state that. Do I just assume it covers that bit?
    4)If I have to spend a weekend abroad or weekend travelling due to work do I still expect to be paid my daily rate of pay?
    5)I may not get a receipt for whatever reason, maybe I am in a country where taxis do not issue a receipt, will I be able to claim that expense? Thought the agreement would allow a certain amount for incidentals but it does not.
    6)I work from home outside London. Do I claim for travel expenses into the London office? Taxi fares & Airport parking, who pays for that?
    7) Should I expect the company to provide me with a laptop or I should provide my own to carry out the client's job?

    8) What is the minimum number of hours per day that constitutes a day's work as far as salary compansation is concerned? (i.e is 4 hours the minimum hours?) Should I expect a full day's rate if I work for only 2 hours if the contract only specifies a daily rate?

    9) The job spec had about a dozen role responsibilities but the contract only lists three. Once again do I just assume my responsibilities are as stated in the job spec or accept what is in the agreement?
    10)Where can I get or buy a sample invoice for billing the customer?

    Please feel free to give me tips or pointers that may be useful to a new contractor.

    I would really appreciate your responses.

    Thank you very much.

    #2
    Originally posted by gogetter1 View Post
    I have just secured my first contracting role and have received the contract. 3months rolling contract. Before I sign it I have a few questions I need help with. Btw the company is not providing me with a credit card.
    I have found some of the answers to some of my questions in this forum using the 'Search' function but I have not found the answers to the questions below;

    1)I am contracting as a ltdco and getting a daily rate but the client says they will deduct PAYE & NI from me. Can this be done? I thought as a ltd company that was my responsibility.
    2)The job involves working abroad at times, what would be a reasonable daily subsistence Per diem amount both for UK and Overseas (outside the EU?
    3)Although the job involves working abroad, the contract does not clearly state that. Do I just assume it covers that bit?
    4)If I have to spend a weekend abroad or weekend travelling due to work do I still expect to be paid my daily rate of pay?
    5)I may not get a receipt for whatever reason, maybe I am in a country where taxis do not issue a receipt, will I be able to claim that expense? Thought the agreement would allow a certain amount for incidentals but it does not.
    6)I work from home outside London. Do I claim for travel expenses into the London office? Taxi fares & Airport parking, who pays for that?
    7) Should I expect the company to provide me with a laptop or I should provide my own to carry out the client's job?

    8) What is the minimum number of hours per day that constitutes a day's work as far as salary compansation is concerned? (i.e is 4 hours the minimum hours?) Should I expect a full day's rate if I work for only 2 hours if the contract only specifies a daily rate?

    9) The job spec had about a dozen role responsibilities but the contract only lists three. Once again do I just assume my responsibilities are as stated in the job spec or accept what is in the agreement?
    10)Where can I get or buy a sample invoice for billing the customer?

    Please feel free to give me tips or pointers that may be useful to a new contractor.

    I would really appreciate your responses.

    Thank you very much.
    Are you its a proper contract and not a short-term permie 'contract'? Sounds like its just a short-term permie job where you're an employee for 3 months. Getting stitched up here methinks.

    Of course, having read the contract and signed it you would have noticed if it was between you and client/agency or your company/client-agency?
    Rhyddid i lofnod psychocandy!!!!

    Comment


      #3
      Originally posted by gogetter1 View Post
      1)I am contracting as a ltdco and getting a daily rate but the client says they will deduct PAYE & NI from me. Can this be done? I thought as a ltd company that was my responsibility.
      Who is the contract between? If it's between the client and your company, then the client should not be deducting PAYE and NI because you are not their employee. If it's between the client and you then you are their employee and they should be deducting PAYE and NI.

      Originally posted by gogetter1 View Post
      2)The job involves working abroad at times, what would be a reasonable daily subsistence Per diem amount both for UK and Overseas (outside the EU?
      Whatever you actually incur. There are scale rates - you need a P11X (I think). There are guidelines and amounts on the HMRC expenses pages.

      Originally posted by gogetter1 View Post
      3)Although the job involves working abroad, the contract does not clearly state that. Do I just assume it covers that bit?
      I don't think it really matters, to be honest.

      Originally posted by gogetter1 View Post
      4)If I have to spend a weekend abroad or weekend travelling due to work do I still expect to be paid my daily rate of pay?
      I would, but I don't know what you expect - after all, I am not you. If you expect to be paid for that time, then I suggest that you discuss that with the client and include it in the contract prior to starting work.
      Originally posted by gogetter1 View Post
      5)I may not get a receipt for whatever reason, maybe I am in a country where taxis do not issue a receipt, will I be able to claim that expense? Thought the agreement would allow a certain amount for incidentals but it does not.
      Make a note of it and claim it. Try to get a receipt if you can, but some places don't do them, or you might lose them. Just don't do it too often. If you don't have a VAT receipt, and you are not on the FRS, then you can't reclaim the VAT.
      Originally posted by gogetter1 View Post
      6)I work from home outside London. Do I claim for travel expenses into the London office?
      If you are travelling to a temporary place of work, then claim the expense. If you are not travelling to a temporary place of work, then you cannot claim the expense without incurring a BIK.

      Originally posted by gogetter1 View Post
      Taxi fares & Airport parking, who pays for that?
      You do. You then reclaim that expense from your employer. And if the contract provides for it, your employer then charges that expense to the client.
      Originally posted by gogetter1 View Post
      7) Should I expect the company to provide me with a laptop or I should provide my own to carry out the client's job?
      Ask the client. I've worked on sites where they expected me to turn up with a laptop ready to run (which luckily I brought with me), and sites where they won't let you take anything electrical through the doors. Only the client knows what the client expects.

      Originally posted by gogetter1 View Post
      8) What is the minimum number of hours per day that constitutes a day's work as far as salary compansation is concerned? (i.e is 4 hours the minimum hours?) Should I expect a full day's rate if I work for only 2 hours if the contract only specifies a daily rate?
      Bill what you think is reasonable. Some days you might only work 2 hours, some days you might work 12. You are in business now, so act like a business.

      Originally posted by gogetter1 View Post
      9) The job spec had about a dozen role responsibilities but the contract only lists three. Once again do I just assume my responsibilities are as stated in the job spec or accept what is in the agreement?
      10)Where can I get or buy a sample invoice for billing the customer?
      You are contracted to deliver what the contract says. Nothing more, nothing less.
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      Comment


        #4
        Originally posted by gogetter1 View Post
        1)I am contracting as a ltdco and getting a daily rate but the client says they will deduct PAYE & NI from me. Can this be done? I thought as a ltd company that was my responsibility.
        To be honest I stopped reading after this as its a massive red flag, they can only deduct PAYE & NI from you if you are an employee of their company not a contractor
        Originally posted by Stevie Wonder Boy
        I can't see any way to do it can you please advise?

        I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

        Comment


          #5
          Originally posted by SimonMac View Post
          To be honest I stopped reading after this as its a massive red flag, they can only deduct PAYE & NI from you if you are an employee of their company not a contractor
          tis true, if your getting PAYE through the client the rest is irrelevant

          Comment


            #6
            Originally posted by gogetter1 View Post
            I have just secured my first contracting role and have received the contract. 3months rolling contract. Before I sign it I have a few questions I need help with. Btw the company is not providing me with a credit card.
            I have found some of the answers to some of my questions in this forum using the 'Search' function but I have not found the answers to the questions below;

            1)I am contracting as a ltdco and getting a daily rate but the client says they will deduct PAYE & NI from me. Can this be done? I thought as a ltd company that was my responsibility.
            2)The job involves working abroad at times, what would be a reasonable daily subsistence Per diem amount both for UK and Overseas (outside the EU?
            3)Although the job involves working abroad, the contract does not clearly state that. Do I just assume it covers that bit?
            4)If I have to spend a weekend abroad or weekend travelling due to work do I still expect to be paid my daily rate of pay?
            5)I may not get a receipt for whatever reason, maybe I am in a country where taxis do not issue a receipt, will I be able to claim that expense? Thought the agreement would allow a certain amount for incidentals but it does not.
            6)I work from home outside London. Do I claim for travel expenses into the London office? Taxi fares & Airport parking, who pays for that?
            7) Should I expect the company to provide me with a laptop or I should provide my own to carry out the client's job?

            8) What is the minimum number of hours per day that constitutes a day's work as far as salary compansation is concerned? (i.e is 4 hours the minimum hours?) Should I expect a full day's rate if I work for only 2 hours if the contract only specifies a daily rate?

            9) The job spec had about a dozen role responsibilities but the contract only lists three. Once again do I just assume my responsibilities are as stated in the job spec or accept what is in the agreement?
            10)Where can I get or buy a sample invoice for billing the customer?

            Please feel free to give me tips or pointers that may be useful to a new contractor.

            I would really appreciate your responses.

            Thank you very much.
            It is understandable that you should seek guidance here. However, most of your questions are about contractual terms & conditions and they should be directed at the client (or agency if your contract is with them).

            It is not sensible to incur expenses or establish expectations of additional payments for travel time and incidentals without thorough prior discussion (and agreement) with the client. Otherwise, you could find yourself losing money on this deal.

            If they are not willing to give you explicit answers walk away unless you think your ready wit and glowing charm will win the day later!

            Comment

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