Reply to: New to contract work..pls advise

[sharky]

Agency has offered me PAYE option i have been given roughly idea on what i earn £250 per day rate and per month take home is around £3700 (on emergency tax code) which i think is not a bad option plus 28 holidays.

Is calculation okay?

sdyson31 28 holidays is what your statutory legally entitled too.

But most Agency's will include your holiday pay as part of your normal pay showing a Calculation on you pay slip of holiday pay then your normal pay + holiday pay this will add up to you day rate. its a Deduction and Addition trick this just keeps them with in the Law.

Few offer to keep a % back in a Account for you to take your so called "paid holidays" when you want it still adds up to the day rate your not being paid extra for them.

if you inside IR35 and have no expanse to clam and the agency is offering a free PAYE option sounds a ok ish deal vs going with a umbrella as fees are about £28 a week just to do a payroll so a saving on that.

[sdyson31]

PAYE option

Agency has offered me PAYE option i have been given roughly idea on what i earn £250 per day rate and per month take home is around £3700 (on emergency tax code) which i think is not a bad option plus 28 holidays.

Is calculation okay?

[MrMarkyMark]

Under ltd without IR35 i can earn around £3700 (47 weeks) after tax which is a lot more than earning 53k per year. There are good chances of this contract to be last for at least an year.

Forget about contracting, try a career in the circus instead, I hear there are positions for people with oversized feet.

HTH.

[quackhandle]

Jesus, lamb to the slaughter.



qh

[SueEllen]

Under ltd without IR35 i can earn around £3700 (47 weeks) after tax which is a lot more than earning 53k per year. There are good chances of this contract to be last for at least an year.

Never presume you will be working for 47 weeks. Apart from holidays other things can go wrong.....

[northernladuk]

Under ltd without IR35 i can earn around £3700 (47 weeks) after tax which is a lot more than earning 53k per year. There are good chances of this contract to be last for at least an year.

For a start, you are inside or outside, not under. Secondly, You can earn that if you can get your head around the whole business of being a contractor which you are struggling very badly at at present. Get it wrong and all that extra money just disappears. Never... and I mean never... assume a contract will last as long as X.... A contract lasts as long as the notice period and even that is a moot point. If you try and second guess your client and plan for the best its going to be a horrible mess when you get given the worst. The very best you should be planning on is the first three months if they honour the first period before they can drop you like a stone. If they do, do you have the warchest behind you until you find the second gig (which is the hardest)?

Are you prepared to travel up and down the country to stay in contract? Understand and deal with everything to do with contracting? Spend periods of time on the bench not earning? Can you handle yourself professionally on site and not just think you are an employee... There is much more to contracting than just a bit of extra money.

[LondonManc]

Under ltd without IR35 i can earn around £3700 (47 weeks) after tax which is a lot more than earning 53k per year. There are good chances of this contract to be last for at least an year.

Rolling contract puts you inside IR35 most likely as NLUK said.

[sdyson31]

Then stay perm.

£260 is a poor rate if you can get £53K perm.

Under ltd without IR35 i can earn around £3700 (47 weeks) after tax which is a lot more than earning 53k per year. There are good chances of this contract to be last for at least an year.

[LondonManc]

100% agree, The reason i am looking into IR35 because its not worth going umbrella on £260 daily rates. I can earn the same on permanent, want to do contract simply because of more money.

Wouldn't bother. Public sector contracts are terrible. £260 is quite good for public sector but you'll have no choice about the contracting being inside or outside; it's how it is judged.

As for contracting long term, staying perm would be safer, especially with the security blanket of redundancy or compromise payments if you're canned.

[SueEllen]

100% agree, The reason i am looking into IR35 because its not worth going umbrella on £260 daily rates. I can earn the same on permanent, want to do contract simply because of more money.

Then stay perm.

£260 is a poor rate if you can get £53K perm.

[sdyson31]

If you're going umbrella route, don't bother.

100% agree, The reason i am looking into IR35 because its not worth going umbrella on £260 daily rates. I can earn the same on permanent, want to do contract simply because of more money.

[LondonManc]

Thanks, QDOS was in my mind

If you're going umbrella route, don't bother.

[sdyson31]

No. Pay to have your contract checked by QDOS or someone similar.

Thanks, QDOS was in my mind

[LondonManc]

would agency be able to provide me the detail contract?

The agency would provide you with the contract to sign.

If you intend to go limited and that the contract is outside IR35, make sure that you get it checked out first.

[SueEllen]

Think man FFS... Who is paying you? So who do you need a contract with? I'm starting to think you are trolling now. No one can be this dim.

Yes they can.