Reply to: Confusing work situation!

[SueEllen]

Thanks Sue, I completly understand your need to shout,I'm sure us niave first timers with lots of questions is frustrating for you guys who are well equipt with all knowledge!

The questions aren't the problem it's the fact that information is available to answer most of the questions is readily available.

[Geek]

Thanks Sue, I completly understand your need to shout,I'm sure us niave first timers with lots of questions is frustrating for you guys who are well equipt with all knowledge!

I'll go and do that so have 'offical' advise from an accoutant to go back to them with :-)

[SueEllen]

so we've well established that theyre trying to rip me off, but how exactly, if i were to set myself up as a ltd company I would still have to pay the Employers NI wouldnt i?

So..... going the ltd company route i would pay myself a small amout and release the rest in dividens and I would also be able to get tax back on certain work / company related items that I buy, petrol, travel etc.

Going this other route I wont be able to do that hence being ripped off? Oui?

PLEASE* can you go to "CUK Navigation" on the right ---> and click on "First Timers" then read all the information under there.

Then go and see your friend the accountant. Ask him if he is use to dealing with contractors if he says "No but..." then PLEASE use the search facility on here to find an accountant and PLEASE phone them up and talk to them before you do anything else.

*And yes I have to shout.

[Geek]

so we've well established that theyre trying to rip me off, but how exactly, if i were to set myself up as a ltd company I would still have to pay the Employers NI wouldnt i?

So..... going the ltd company route i would pay myself a small amout and release the rest in dividens and I would also be able to get tax back on certain work / company related items that I buy, petrol, travel etc.

Going this other route I wont be able to do that hence being ripped off? Oui?

[mudskipper]

Thanks for your help here!!

I was planning to not go through an agency as I've luckily got an accountant in the family who will do 'my books' as they already do for my self employed brother.

An agent and an accountant do not fulfil the same role.

[Drewster]

Thanks for all your help guys!

Looking into the self employed route it looks like I don't fall under the hmrc definition of self employed so won't be able to do that.

So we're back to option one of using my current employer as the ltd company! Still lots to iron out so I'll let you know how it goes!

No! No! No! Don't use your current employer as "the ltd company" - I think we have already established they are happy to rip you off big time......

Setting your own limited company is easy - speak to you accountant mate or another accountant or search on Interweb...... pretty well anything but get (knowingly) ripped off!!!

[Geek]

Thanks for all your help guys!

Looking into the self employed route it looks like I don't fall under the hmrc definition of self employed so won't be able to do that.

So we're back to option one of using my current employer as the ltd company! Still lots to iron out so I'll let you know how it goes!

[Wanderer]

So as long as company B are happy with it, which I think they are as we already discussed this option there shouldn't be a problem?

Cojak is kind of right - you can be self-employed if you are going direct and the client allows it, but for most contractors it's not an option because agencies won't allow it so you are forced into the LTD or Umbrella route.

Self Employed is the simplest, but a LTD might allow you to pay less tax but at the expense of having more admin/accountancy work. With a limited company you also have limited financial liability if you get into trouble. You might want to get your accountant friend down to the pub and buy a few pints to get some advice about your trading structure.

[cojak]

You can now post unmoderated.

[Geek]

Thanks for your help here!!

I was planning to not go through an agency as I've luckily got an accountant in the family who will do 'my books' as they already do for my self employed brother.

So as long as company B are happy with it, which I think they are as we already discussed this option there shouldn't be a problem?

P.s when will my posts stop being moderated it does help with the flow of a conversation hehe

[mudskipper]

If you're working direct, self-employed may still be an option if company B agree - and if they know and trust you (to pay your taxes/NI) it's certainly not a no-go. However, it is a short term solution - as Cojak said, agents will not deal with you on that basis.

[cojak]

No, there is no self-employed option anymore (although I'm sure there are one or two souls out there still working that way).

It's considered too risky by the agencies as they may be seen to be liable for NI and taxes if the SE contractor doesn't cough up.

[Geek]

Thanks for the link, thats a great read.

Only thing is it doesnt mention on there going self employed (not set up a ltd company) is this something that isnt done that much anymore? Do people only operate on one of those three options?
or am I getting myself confused over all this!

[cojak]

Take a look at the first-timers guide to get you started.

Good Luck!

[Geek]

Thanks cojack

Ive worked out approx what I will get with and without this Employers National Insurance and I'm amazed how much better off I will be going self employed, your bang on they are really ripping me off!!

IMO If my current company wants to keep me as an employe to make them look better / bigger then this should be something they cover - and what benefits do I get paying it?? Nothing, dead money!!

Campany B does really care which route I go down (contracted out by my current employer or be self employed) so i think i will be better off going self employed!