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Previously on "IR35 Update following discussion group yesterday - survey request"

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  • supersteamer
    replied
    A big one for many of us is of course flights / hotels etc. just to get to site. This is contentious in light of the T&S changes but that doesn't mean it's not a factor.

    In the current situation where this is deemed business travel then an employee may expect their employer to pay for them to go to a temporary site. That could be worth £10,000s per year.

    Even if this gets reclassified as "ordinary commuting" (2 international flights per week ordinary commuting?!!) then it would still be potentially more expensive for a contractor: an employee would have sufficient job security to consider relocating close to their employer to minimize travel costs. A contractor may only expect to be there a few months so it is not practical to relocate each time. Over time their average commute is bound to be longer / more costly on average as a result (although impossible to quantify by how much).

    Leave a comment:


  • Contreras
    replied
    Originally posted by WordIsBond View Post
    Additional to your list.

    Things I don't get:
    When I was permie I was in an Employee Share Ownership plan.
    Could eat at company canteen.
    Relevant Life Plan.

    Have to buy:
    - computer, printer, fax, copier
    - mobile phone
    - business telephone / Internet
    - virus software
    - misc other software
    - business cards / stationery (maybe that's under "promotion")
    Business cards a separate item imho (reinforcing the IBOYOA aspect). Promotion could be renamed Marketing.

    + domain name registration
    + web & email hosting
    + companies house AR01 fee

    Non-fee earning duties which reduce one's effective day rate:
    + attending interviewsales meetings, travel and prep time invested to secure every N weeks of work
    + bookkeeping admin (even if this is via an online accounting portal)
    + VAT returns & RTI
    + corporate compliance, as below...

    Directors have a legal responsibility for corporate compliance, that means:
    + posting on CUKkeeping up to date with new rule changes
    + reviewing and sign-off of yearly financial statement
    + regular invites to HMRC tax webinars for example, do they invite permies too?

    Leave a comment:


  • LisaContractorUmbrella
    replied
    Originally posted by WordIsBond View Post
    The amount I gave for promotion only tells a fraction of the story, of course.

    I spend thousands a year going private for repeated operations on my shoulder (the doctor tells me to quit patting myself on the back). I say it's promotion cost and should come out of the company, but my accountant disagrees.
    Think your accountant may be right on that one

    Leave a comment:


  • WordIsBond
    replied
    Originally posted by LisaContractorUmbrella View Post
    thank you
    The amount I gave for promotion only tells a fraction of the story, of course.

    I spend thousands a year going private for repeated operations on my shoulder (the doctor tells me to quit patting myself on the back). I say it's promotion cost and should come out of the company, but my accountant disagrees.

    Leave a comment:


  • LisaContractorUmbrella
    replied
    Originally posted by WordIsBond View Post
    I'm spending about £800 / year on landline phone/Internet.

    I budget £3K a year for computer hardware, but I'm buying more hardware than just mine, someone else might be £1K a year or less.

    I guess you could use £100-200 year for software. That's going to vary widely. Some will spend almost nothing.

    I'm around £200 / year for promotion.

    For just my phone, £30 / month.

    The employee share ownership plan I used to be in was probably worth an average £5K / year.

    I'm probably older than most here so someone else should put a value on Relevant Life Plan and private health insurance.

    I'm paying £1K a year accountancy fees. Others whose business is simpler than mine are probably paying less.

    I get multiple small contracts not all of which I have reviewed for IR35 (anything less than two months isn't worth it). If the average guy has a contract every six months and has QDOS review them, he's spending £200 / year on legal costs.

    My insurance needs are different, someone else should answer that.

    Gym cost is £30 / month. I'm still an out of shape slob, but at least I feel good about trying twice a week.
    thank you

    Leave a comment:


  • LisaContractorUmbrella
    replied
    Originally posted by TheFaQQer View Post
    You've got mail

    Leave a comment:


  • Outside Edge
    replied
    Sorry guys newbie alert..

    Regular reader first time poster...

    Although not in the IT field I frequent your forum as it is firstly an interesting read.. but secondly being a contractor in anther field (Oil & Gas) we share a lot of common issues..

    to add to Lisa's question..

    Professional Indemnity Ins @ £600 PA
    Public Liability Ins @ £125
    Fore majeure - where changes in legislation stop/hold projects..
    unsociable hours working for no uplift in money..
    Working Time directive - regular having to do 60 hours per week to meet project deadlines..

    I'm sure there are more..

    Leave a comment:


  • TheFaQQer
    replied
    Originally posted by LisaContractorUmbrella View Post
    This is really cheeky but I don't suppose anyone has the time (or inclination) to attach any kind of monetary figure to these costs/lost benefits?
    You've got mail

    Leave a comment:


  • WordIsBond
    replied
    I'm spending about £800 / year on landline phone/Internet.

    I budget £3K a year for computer hardware, but I'm buying more hardware than just mine, someone else might be £1K a year or less.

    I guess you could use £100-200 year for software. That's going to vary widely. Some will spend almost nothing.

    I'm around £200 / year for promotion.

    For just my phone, £30 / month.

    The employee share ownership plan I used to be in was probably worth an average £5K / year.

    I'm probably older than most here so someone else should put a value on Relevant Life Plan and private health insurance.

    I'm paying £1K a year accountancy fees. Others whose business is simpler than mine are probably paying less.

    I get multiple small contracts not all of which I have reviewed for IR35 (anything less than two months isn't worth it). If the average guy has a contract every six months and has QDOS review them, he's spending £200 / year on legal costs.

    My insurance needs are different, someone else should answer that.

    Gym cost is £30 / month. I'm still an out of shape slob, but at least I feel good about trying twice a week.

    Leave a comment:


  • LisaContractorUmbrella
    replied
    This is really cheeky but I don't suppose anyone has the time (or inclination) to attach any kind of monetary figure to these costs/lost benefits?

    Leave a comment:


  • WordIsBond
    replied
    Additional to your list.

    Things I don't get:
    When I was permie I was in an Employee Share Ownership plan.
    Could eat at company canteen.
    Relevant Life Plan.

    Have to buy:
    - computer, printer, fax, copier
    - mobile phone
    - business telephone / Internet
    - virus software
    - misc other software
    - business cards / stationery (maybe that's under "promotion")

    Leave a comment:


  • LisaContractorUmbrella
    replied
    Thanks guys

    Leave a comment:


  • TheFaQQer
    replied
    Originally posted by LisaContractorUmbrella View Post
    Again - have I missed anything?
    Mobile phone

    Leave a comment:


  • ContrataxLtd
    replied
    Originally posted by LisaContractorUmbrella View Post
    I am putting together a list of things that your contract rates have to provide for - have I missed anything?

    i. Additional National Insurance Contributions
    ii. Periods where the contractor has no work available to them
    iii. Periods of sickness when they are unable to work
    iv. Periods when they may have suffered injury and are unable to work
    v. Periods when they are on holiday
    vi. Contributions to a pension scheme (as they are not eligible under auto-enrolment rules)
    vii. Maternity pay for the first six weeks
    viii. Being released early from a contract with no warning and no financial redress
    ix. Accountancy fees
    x. Insurance costs
    xi. Training costs
    xii. Legal costs
    xiii. Promotion costs

    And this is the stuff you don't get:

    i. Free or subsidised Private Health Care
    ii. Partial or non-contributory pension scheme
    iii. Company Car (there will be a BIK attached to this obviously)
    iv. Free or subsidised gym or sports club membership.
    v. Interest free Season ticket loans
    vi. Relocation packages
    vii. Full maternity/paternity pay
    viii. Maternity, paternity and shared parental leave above the Statutory minimum
    ix. Training courses
    x. Long service pay awards
    xi. Redundancy pay
    xii. Childcare vouchers

    Again - have I missed anything?
    What about little things like computer equipment, mobile phone etc.

    Leave a comment:


  • pr1
    replied
    Originally posted by LisaContractorUmbrella View Post
    According to the response on the Dividend Tax petition the changes are netting the Government £500 million
    remember IR35 (loss of) income is from disguised employees only - dividend tax change hits a lot more than that (i.e. all shareholders of all businesses)

    Leave a comment:

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