New analyst role

[stek]

Just checked with some online calculators. Monthly net pay on £30k annual salary is £1,935 and monthly net pay via umbrella company at £250 day-rate is £3,062 (with no expenses taken into account).

With no holidays, sickpay, pension, overtime, bonus and the prospect of being finished on day one.

Think again..

[mudskipper]

OP knows they're caught by IR35.

If the plan was to hand in notice to take a break, and the opportunity to get a few quid in the bank first has come along, they'd be daft not to.

So yes, Umbrella is the way to go.

As for Direct vs Agency, depends what you can negotiate. Ask the contractors you're working with what they do. Chances are that your employer already has a PSL of agencies they use - if you can find one that will do payment factoring for 5%, then that sounds good. Going direct can cause lots of hassle getting paid.

[MarillionFan]

Just checked with some online calculators. Monthly net pay on £30k annual salary is £1,935 and monthly net pay via umbrella company at £250 day-rate is £3,062 (with no expenses taken into account).

because that £1127 has to cover:-

holidays (6 weeks or over 10%)
illness
employer pension contributions
risk of no contract.....

With no holidays, sickpay, pension, overtime, bonus and the prospect of being finished on day one.

Think again..

OP knows they're caught by IR35.

If the plan was to hand in notice to take a break, and the opportunity to get a few quid in the bank first has come along, they'd be daft not to.

So yes, Umbrella is the way to go.

As for Direct vs Agency, depends what you can negotiate. Ask the contractors you're working with what they do. Chances are that your employer already has a PSL of agencies they use - if you can find one that will do payment factoring for 5%, then that sounds good. Going direct can cause lots of hassle getting paid.

Take the money. This theoretical crap about sickpay / pension / over time/ bonus etc is pure conjecture. This is the reasoning of the hidden permie / the scared contractor. A real contractor with real skills will minimise all of these versus the permie benefits mooted.

It all depends. Do you feel lucky punk? Do you?

[malvolio]

Just checked with some online calculators. Monthly net pay on £30k annual salary is £1,935 and monthly net pay via umbrella company at £250 day-rate is £3,062 (with no expenses taken into account).

Fine, don't listen. I should care less. But look at what they are allowing for expenses, for example. And how many days you'll be working - it's not 5 days a week, 52 weeks a year. And what they do for a living - do you want the sales pitch or the real-world answer from someone with 20 years' practice?

As for

This theoretical crap about sickpay / pension / over time/ bonus etc is pure conjecture. This is the reasoning of the hidden permie / the scared contractor. A real contractor with real skills will minimise all of these versus the permie benefits mooted.

This is, as usual for him, total bullocks. For one thing, you aren't a contractor yet.

[northernladuk]

Proper contract as in via an agency? I would settle for 2 months so I'll try and force this into the contract.

No a proper contract with a new client not being a disguised permie with a different pay structure.

[dbred10]

Thanks all,

Yes I am bound to get caught by the IR35, but do I need to declare this first or just be honest and wait to be caught if I am getting my own company up? It's just being inside the IR35 is still better than umbrella company.

This is only a short term thing, it might even be a one off, I just want to take advantage of the fact they're going to recruit to a contractor who would have been paid double the day rate of what I'm on, so I thought why not that person be me, until they can get a permanent staff.

I took the risk of not having any sick pay, holidays, pension by handing in my notice, so in a way, i don't have them to lose as i would be unemployed unless i take up this contracting role/find another job.

I value all response from this forum and been reading a lot in the last week, obviously there are so many more experience guys out there and just want a feel if what I'm doing is madness, what would you do in my situation. etc

[dbred10]

No a proper contract with a new client not being a disguised permie with a different pay structure.

Sorry for the dumb questions.
where the best place to get a proper contract? new client being the same as before but calling them a different name?

[stek]

Thanks all,

Yes I am bound to get caught by the IR35, but do I need to declare this first or just be honest and wait to be caught if I am getting my own company up? It's just being inside the IR35 is still better than umbrella company.

This is only a short term thing, it might even be a one off, I just want to take advantage of the fact they're going to recruit to a contractor who would have been paid double the day rate of what I'm on, so I thought why not that person be me, until they can get a permanent staff.

I took the risk of not having any sick pay, holidays, pension by handing in my notice, so in a way, i don't have them to lose as i would be unemployed unless i take up this contracting role/find another job.

I value all response from this forum and been reading a lot in the last week, obviously there are so many more experience guys out there and just want a feel if what I'm doing is madness, what would you do in my situation. etc

This is not contracting - it's just doing the same job under a different legal framework.

[jamesbrown]

Yes I am bound to get caught by the IR35, but do I need to declare this first or just be honest and wait to be caught if I am getting my own company up? It's just being inside the IR35 is still better than umbrella company.

No, you don't wait, you need to account for being inside on this contract upfront, which (in simple terms) means 5% expenses and PAYE on the rest. Failing to account for this upfront, when you know you're inside, could result in significant penalties. Given your lack of experience, you'd need an accountant to arrange everything for you. TBH, you say that you'll be better of with a company, but it's pretty marginal when all (i.e. one) contracts are inside and you'll also have the hassle of opening, managing and closing the company. With an umbrella, you're an employee of the umbrella, which will operate PAYE on the contract income, so much less hassle, but slightly less income than a Ltd. after accounting for flat rate VAT etc. (which will be included in the IR35 calc.)

[jamesbrown]

This is not contracting - it's just doing the same job under a different legal framework.

Yep.