Reply to: IR35 Update following discussion group yesterday - survey request

[supersteamer]

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).

[Contreras]

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?

[LisaContractorUmbrella]

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

[WordIsBond]

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.

[LisaContractorUmbrella]

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

[LisaContractorUmbrella]

You've got mail

[Outside Edge]

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..

[TheFaQQer]

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

[WordIsBond]

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.

[LisaContractorUmbrella]

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?

[WordIsBond]

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")

[LisaContractorUmbrella]

Thanks guys

[TheFaQQer]

Again - have I missed anything?

Mobile phone

[ContrataxLtd]

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.

[pr1]

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)