Overtime rate, Nothing in contract

[Support Monkey]

Employees are paid overtime. Not good for IR35 purposes ...

Not asking for overtime asking for a change in rate to compensate for the extra hours worked over the Professional working day

[disarm]

What a load of tosh. I hope to god you have had your contract IR35 checked with that mindset.

So you can't update the contract to include hourly rate (for overtime and travel time, as and when required?)

[Boo]

Employees are paid overtime. Not good for IR35 purposes ...

FUD. There is nothing about the contractual agreement to provide services at varying rates which constitutes an IR35 pointer.

In fact, if the rates charged are different from the standard overtime rates then the OP could even argue that is a indicator s/he is not an employee in the same way that working different hours is.

Boo

[Support Monkey]

Speak to the agent and get it written in to the contract. I had to make a few changes to my contract, a few weeks in. They might just divide the daily rate by number of hours, i.e. £120 / 7.5 = £16 an hour.

You will need to make sure you can enter an hourly rate as well as a day rate on the timesheet.

Not sure if you're taxed more on overtime rates (as in permie employees are).

Never ever seen that before, is that even possible, when i have worked extra hours i normally wait until i have enough for a full day or half a day or if i have worked say 6 hours and its not likely i will get anymore i will make a point of saying to the client i have worked X but am only charging for y then they feel like they have got something for nothing.

[Boo]

When I was permanent, I was always taxed more on overtime pay.

No you weren't, you were taxed a your normal marginal rate. What happened is that all your overtime earnings were taxed because you'd already used up your allowance on your normal salary. This made it seem that overtime was taxed at a higher rate.

Boo

[disarm]

Never ever seen that before, is that even possible, when i have worked extra hours i normally wait until i have enough for a full day or half a day or if i have worked say 6 hours and its not likely i will get anymore i will make a point of saying to the client i have worked X but am only charging for y then they feel like they have got something for nothing.

If you have to invoice through an umbrella, and the invoice is set up for day rate only, this will have to be amended to include an hourly rate for any additional hours worked. That's all I'm trying to say.

[Boo]

Not asking for overtime asking for a change in rate to compensate for the extra hours worked over the Professional working day

If I were you I'd set how many hours I was prepared to work in a day and cost them at eg time and a quarter or time and a half then add that rate to my daily rate to get the new rate.

Eg, I am prepared to work 3 extra hours on a 7 hour day but I want time and a half for them so I am now charging for 3 * 1.5 = 4.5 extra hours in a day. This means I need to ask for a 4.5 / 7 = 64% increase on my day rate.

Just use your own figures as to how many hours you are prepared to commit to and what overtime rate you want for those hours.

Good luck anyway, there's no harm asking.

Boo

[disarm]

No you weren't, you were taxed a your normal marginal rate. What happened is that all your overtime earnings were taxed because you'd already used up your allowance on your normal salary. This made it seem that overtime was taxed at a higher rate.

Boo

I see, thanks for clarifying.

[russell]

I have notified the client I am willing to work extra hours but will charge 1.5x, and do 1 hour extra a day which means I can charge 6 days a week. (5 hr/wk *1.5 = 7.5 = 1 day).

[Boo]

I have notified the client I am willing to work extra hours but will charge 1.5x, and do 1 hour extra a day which means I can charge 6 days a week. (5 hr/wk *1.5 = 7.5 = 1 day).

Sounds like a plan. Make sure you get their answer in writing.

Boo