First timer advice please

[Thunder]

Hello all, first post, so please be kind ;-)

Contracting has been something that I've been thinking about doing for some time, with a plan to gain a bit more experience where I am before I do anything about it.

Recently a previous manager has been in touch about a job where she now works... initially it was perm, but has transpired in the past few days that she can only second internally, or recruit contractors.

So, she still wants me to do the job, but as a contractor, which is fine by me as long as the terms are fair.

So, this has all come about fairly quickly, and I'm meeting her on Thursday to discuss. While I'm cramming all the info I can in, I wondered if you pros could offer some advice on what to cover off in case I've missed something.

Cheers

Ben

[LisaContractorUmbrella]

I think you may need to be a tiny bit more specific Ben

[Pondlife]

Don't do the mental arithmatic of multiplying the offered day rate by 260 and thinking you're going to be loaded.

[BrilloPad]

In general you need to invoice about 50% more than the permanent salary to make up for employers NI, sickness, training. And of course the biggest thing is risk! They might turn round after a week and terminate your contract(I suppose they can do that as a permie anyway).

What is your appetite for risk like? Do you have any dependants?

It might be the making of you or the breaking of you.

[oscarose]

Hello all, first post, so please be kind ;-)

Contracting has been something that I've been thinking about doing for some time, with a plan to gain a bit more experience where I am before I do anything about it.

Recently a previous manager has been in touch about a job where she now works... initially it was perm, but has transpired in the past few days that she can only second internally, or recruit contractors.

So, she still wants me to do the job, but as a contractor, which is fine by me as long as the terms are fair.

So, this has all come about fairly quickly, and I'm meeting her on Thursday to discuss. While I'm cramming all the info I can in, I wondered if you pros could offer some advice on what to cover off in case I've missed something.

Cheers

Ben

Go for it. Nothing ventured, nothing gained.

[northernladuk]

Offered as perm but can only take contract screams Inside IR35... Read up on IR35 and look at umbrella's.

[MyUserName]

Offered as perm but can only take contract screams Inside IR35... Read up on IR35 and look at umbrella's.

Just to clarify, he means umbrella COMPANIES. Do not stand there looking at umbrellas. Or at least, if you do, do not try to bill the client for it claiming it was work related, unless you are contracting as a weatherman or something.

[Thunder]

LisaContractorUmbrella - What specifics do you need? I'll happily oblige where I can. I won't know too much at all until I've been across on Thursday though, which is part of the problem. I thinks it's going to be a "this is it, do you want to do it?" type affair. It's on a project that the company is undertaking for 1-2 years.

Pondlife - Not thinking I'll be loaded. I think it would have to go fairly badly though for me not to be at least slightly better off. More viewing it for the lifestyle and variety, and it's a great opportunity to get into it as long as the offer is for a reasonable amount of time as I've not had to hunt for the work.

BrilloPad - I'm comfortable with risk - in fact I believe a good dose is healthy for you from time to time. I suppose one thing I am asking though is how to best mitigate/manage this? I have a daughter who doesn't live with me, and another on the way.

oscarose - Thanks!

northernladuk - IR35, this is where most of my cramming is going at the moment

MyUserName - I wish you'd gotten to me earlier, I've been stood over the by the coat rack for at least an hour :-)

Thanks all, great responses!

[Meera @ K&B Accountancy]

Contractor payment options

Hi Ben

You will need to consider your payment options as a contractor, such as:


Own Limited Company - By setting up your own limited company, you will be running your own business. Providing you are not caught by IR35, this is the most tax efficient way of working.

Umbrella Company - By joining an umbrella company, you become a PAYE employee. You still have some of the benefits that a limited company could offer i.e. claiming business related expenses. However, you are subject to additional taxes although you could still benefit.

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[kaiser78]

If this progresses be sure to get an accountant enagaged asap. Impt to get it right from the start.