Originally posted by SueEllen
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Reply to: Contract v fixed term
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Previously on "Contract v fixed term"
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Originally posted by MPwannadecentincome View PostI bet the unions don't like that!
Though anyone I've met with decent IT skills who worked in the PS has got fed up and moved into the private sector so it hasn't been an issue.
*I can't remember what the damn thing is called but seen it on adverts.
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Originally posted by SueEllen View PostPS can make a special salary add-on to get specialist salaries up to market rate. However they can remove these at anytime.
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Originally posted by MPwannadecentincome View PostI was offered a choice of contract or FTC on a gig a few years ago. When the client realised that the salary I asked for was above the normal pay range for the grade they were thinking of taking me on and that they would need to put me on a higher grade which HR didn't like then the daily rate option was easily taken up.
I think banks and investment companies. get around this by having super elevated technical grades. A mate of mine is a VP in a bank but is just a super good developer - they had to put him on that job grade to pay the market rate for his salary. Somehow I don't think public sector will be able to do this.
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I was offered a choice of contract or FTC on a gig a few years ago. When the client realised that the salary I asked for was above the normal pay range for the grade they were thinking of taking me on and that they would need to put me on a higher grade which HR didn't like then the daily rate option was easily taken up.
I think banks and investment companies. get around this by having super elevated technical grades. A mate of mine is a VP in a bank but is just a super good developer - they had to put him on that job grade to pay the market rate for his salary. Somehow I don't think public sector will be able to do this.
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Originally posted by supersteamer View PostWhere does this yardstick come from? Expenses wouldn't apply in either case as it's for more than 2 years.
If I plug £400 per day into contractorcalculator.co.uk it says revenue would be £88k with £26,070 tax outside IR35 and £31,491 tax inside. That's an increase of 6% on revenue. Yes, you can play about with holding money in the company (outside) and/or putting it into a pension (outside or inside) but I can't really see how you'd normally need a 30% rate uplift to cover it.
HMRC's IR35 tweaks have 90% of UK's IT contractors up in arms • The Register
http://www.1stcontact.com/blog/finan...-public-sector
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Originally posted by chopper View Post
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Originally posted by MrMarkyMark View PostI believe a yardstick is around 30%, but I don't believe this covers the expenses side.
If I plug £400 per day into contractorcalculator.co.uk it says revenue would be £88k with £26,070 tax outside IR35 and £31,491 tax inside. That's an increase of 6% on revenue. Yes, you can play about with holding money in the company (outside) and/or putting it into a pension (outside or inside) but I can't really see how you'd normally need a 30% rate uplift to cover it.
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Originally posted by northernladuk View PostRead the legislation document that I've linked. It is covered in there.
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Originally posted by emranio View Post.
Yes i know, its not direct but the intention is to go direct. possibly B2B. hwo can they pay it net of taxes? currently i have had an assessment done and i am outside of IR35
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.[QUOTE=
Also, as an aside, if you're through YourCo and CL1 you are not actually direct, your contract is with any intermediate agency and ultimately Capita. As of April it will be paid net of all taxes.[/QUOTE]
Yes i know, its not direct but the intention is to go direct. possibly B2B. hwo can they pay it net of taxes? currently i have had an assessment done and i am outside of IR35
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Originally posted by emranio View PostMy client has advised there is no two year rule, just as long as i don't think of my self as an employee and as its through an CL1 agency and my ltd company i dont consider my self an employee.
Also, as an aside, if you're through YourCo and CL1 you are not actually direct, your contract is with any intermediate agency and ultimately Capita. As of April it will be paid net of all taxes.
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Originally posted by northernladuk View PostI don't think any of this is an issue. This is a simple case that the OP has done 2 years at a Govt agency and he is done. They don't allow extensions past 2 years so they are going to have to let him go as a contractor. There is no handcuff issues as he cannot be there past 2 years so the agency cannot prove loss.
He's simply being moved from a contractor to an employee. The standard way of getting in to PS is the 2 year FTC so all they are doing is changing the role from a contingent one to a permie one. No Pseudo about it. He's becoming an employee like everyone else that joins the civil service.
Because of that I doubt they will accept the rate he is contracting at or an uplift. The role will come with a rate which will be pretty derisory compared to the private sector.
Simple as that really. IMO after 2 years at the client the OP should know this and not be thrashing around like he is.
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