Fixed Term contract

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malvolio replied

22 February 2015, 16:43
Originally posted by kingcook View Post

Shirley they'd be aware that you're almost a proper employee anyway if you're on an FTC?

Not really, you are an employee with a set leaving date and you will have relinquished all rights to redundancy pay and further employment with that company. If they did the sums they would realise it's cheaper to use a freelance, and if they used a proper B2B supplier contract the question of employment would never arise - but this is Human Remains we're talking about...

I agree though, there are probably some companies out there who don't understand.

Given the rank amateurishness most recruitment agencies are allowed to get away with, I suspect there are rather a lot of them...
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kingcook replied

22 February 2015, 16:28
Originally posted by malvolio View Post

Doubt it. Human Remains use FTCs when they don't understand contracting as an option and are scared of employment claims.

Shirley they'd be aware that you're almost a proper employee anyway if you're on an FTC?

I agree though, there are probably some companies out there who don't understand.
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malvolio replied

22 February 2015, 13:05
Originally posted by kingcook View Post

Will the client/agent not consider doing a normal B2B contract, as long as it's priced the same as their FTC so that they do not end up paying any more money?

Doubt it. Human Remains use FTCs when they don't understand contracting as an option and are scared of employment claims.
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kingcook replied

22 February 2015, 12:10
Originally posted by ckms View Post

I've agreed to interview for a maternity cover FTC as I'm on the bench and the market in my area of work is extremely quiet. If I get the gig what is the best thing to do as regards my Ltd company?

What are the benefits, costs & tax implications of keeping the company going and if I do so, do I withdraw my profits as dividends or continue to pay myself occasionally during the term of the FTC?

Alternatively would you simply close the company and set a new one up should you ever go back into contracting?

Thanks all.

Will the client/agent not consider doing a normal B2B contract, as long as it's priced the same as their FTC so that they do not end up paying any more money?
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BolshieBastard replied

21 February 2015, 10:48
Originally posted by ckms View Post

Hi.

1. 12 months
2. Ideally I would like to keep all my options open. My preference would have been to continue contracting forever but there is nothing out there at the moment and I have a strange urge to work rather than enjoy time at home. If in 12 months I decide for whatever reason not to return to contracting then I would like to know how much it will cost to keep the business running along with any other implications I should be aware of.

Thanks

You can either make the company dormant or close it down. If you havent done so already, you can apply to extend the company year end beyond what it normally would be so it overlaps the FTC end date. Im not sure if you can extend the YE by 12 months though so you'd need to ask your accountant.

If you make your co dormant, you'd still have some admin costs so all in all, Id suggest closing the company if you get the FTC. New co start up costs are minimal.
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ckms replied

21 February 2015, 10:19
Hi.

1. 12 months
2. Ideally I would like to keep all my options open. My preference would have been to continue contracting forever but there is nothing out there at the moment and I have a strange urge to work rather than enjoy time at home. If in 12 months I decide for whatever reason not to return to contracting then I would like to know how much it will cost to keep the business running along with any other implications I should be aware of.

Thanks
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vwdan replied

21 February 2015, 10:08
You missed two fairly major pieces of info:

1. How long is the FTC?
2. Do you intend to resume your Ltd Company activities afterwards?
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ckms started a topic Fixed Term contract

21 February 2015, 09:09
Fixed Term contract

I've agreed to interview for a maternity cover FTC as I'm on the bench and the market in my area of work is extremely quiet. If I get the gig what is the best thing to do as regards my Ltd company?

What are the benefits, costs & tax implications of keeping the company going and if I do so, do I withdraw my profits as dividends or continue to pay myself occasionally during the term of the FTC?

Alternatively would you simply close the company and set a new one up should you ever go back into contracting?

Thanks all.
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