Note: this thread is NOT for the usual IT Contractor posters on this site and will be heavily moderated. All posts will be welcome if they are helpful.
I have noticed an increase in new posters to the CUK forums who do not come from the usual route of IT/Engineering/Oil & Gas industries.
Many of them have come from local government or the NHS (edit, or even CIS). Also many of them seem to be having problems when it comes to getting paid or paying tax.
But there is also a worrying trend.
Many did not want to become contractors. They wanted permanent and stable employment working for the same employer, in the same place, and not be troubled by HMRC.
These are the people I’m talking to in this post.
If you see yourself in this description you may have read the forums of CUK and been dismayed by the lack of empathy and sympathy for the predicament you find yourself in.
We are not heartless gits (well, not all of us…), it’s just that we are voluntary contractors. We value the lifestyle, we like that we are not tied to an employer and we can leave whenever we choose (more or less). We see ourselves as a business –
This is why we give the advice that we do – it follows that mode of work and thinking.
You, of course, don’t want that kind of lifestyle.
So, I am going to give some advice here that I would not place anywhere else on the forum.
You need help in two areas:
Pay and Tax
If you are working for the Public Sector (PS), I am 95% sure that you will be working inside IR35 – if the client says that you are outside ‘just to increase your pay packet’ I am 100% certain that they are in the wrong.
1.) Before you sign the contract, look up how much you will get in your bank account at the end of the month.
Use this calculator as an example: Umbrella Company PAYE Calculator | Contractor Umbrella
2.) Use a legitimate umbrella; you do not want the hassle of paying your own tax and an accountant. But the important word is ‘legitimate’ - see this link for advice on how to do that: PS & IR35: Choosing a legitimate Umbrella
The important things to consider when choosing an umbrella is their customer service and how stable they are – you don’t want them going bust with your money in their bank account.
Do NOT go with an Umbrella that promises you more than 65% of your day rate as take-home pay - they are tax avoidance vehicles and you don't want to go there - see HMRC Scheme Enquiries for the poor souls who did not realise this.
See this thread as well:
Tax avoidance promoters (Mini Umbrellas) targeting NHS workers
https://forums.contractoruk.com/umbr...s-workers.html
Support
This is the most controversial part of my advice, but I think that it applies to you. I think that you should join a union.
There is an organisation called IPSE (Association of the Independent Professional and the Self-Employed), but that organisation is for people who want to be Independent Professionals or the Self-Employed – you don’t.
Update: IPSE is proving a lot more sympathetic about this than I expected. Contact them for help. Homepage | IPSE
Look at Unite or Unison and look at how they can help you.
Agency and temporary workers | Vulnerable workers | UNISON National
http://www.unitetheunion.org/how-we-...becomeamember/
There may be problems with this approach and I certainly would not tell an agency or client if you do join one.
But I would seriously consider it.
Despite what we say, we are genuinely sorry for those people who have been caught by the increasingly aggressive tactics of HMRC who see a loss of tax, and unscrupulous/cash-strapped employers who are kicking out their employees and bringing them back as ‘contractors’ without worker's rights or support, as HR and support costs money and quite frankly they don’t care.
Find someone who does care – find a union to help you.
(and come to this thread – ask your questions here.)
I have noticed an increase in new posters to the CUK forums who do not come from the usual route of IT/Engineering/Oil & Gas industries.
Many of them have come from local government or the NHS (edit, or even CIS). Also many of them seem to be having problems when it comes to getting paid or paying tax.
But there is also a worrying trend.
Many did not want to become contractors. They wanted permanent and stable employment working for the same employer, in the same place, and not be troubled by HMRC.
These are the people I’m talking to in this post.
If you see yourself in this description you may have read the forums of CUK and been dismayed by the lack of empathy and sympathy for the predicament you find yourself in.
We are not heartless gits (well, not all of us…), it’s just that we are voluntary contractors. We value the lifestyle, we like that we are not tied to an employer and we can leave whenever we choose (more or less). We see ourselves as a business –
- If we don’t like the terms and conditions of a new contract, we don’t sign and we don’t work for the client.
- We understand and choose to work either inside or outside of IR35 (see above) and understand the tax implications of our choices.
- If we come to the end of a contract and aren’t happy with the money or work, we will leave the client and look for more money or better work.
This is why we give the advice that we do – it follows that mode of work and thinking.
You, of course, don’t want that kind of lifestyle.
So, I am going to give some advice here that I would not place anywhere else on the forum.
You need help in two areas:
- Pay and tax
- Support
Pay and Tax
If you are working for the Public Sector (PS), I am 95% sure that you will be working inside IR35 – if the client says that you are outside ‘just to increase your pay packet’ I am 100% certain that they are in the wrong.
1.) Before you sign the contract, look up how much you will get in your bank account at the end of the month.
Use this calculator as an example: Umbrella Company PAYE Calculator | Contractor Umbrella
2.) Use a legitimate umbrella; you do not want the hassle of paying your own tax and an accountant. But the important word is ‘legitimate’ - see this link for advice on how to do that: PS & IR35: Choosing a legitimate Umbrella
The important things to consider when choosing an umbrella is their customer service and how stable they are – you don’t want them going bust with your money in their bank account.
Do NOT go with an Umbrella that promises you more than 65% of your day rate as take-home pay - they are tax avoidance vehicles and you don't want to go there - see HMRC Scheme Enquiries for the poor souls who did not realise this.
See this thread as well:
Tax avoidance promoters (Mini Umbrellas) targeting NHS workers
https://forums.contractoruk.com/umbr...s-workers.html
Support
This is the most controversial part of my advice, but I think that it applies to you. I think that you should join a union.
There is an organisation called IPSE (Association of the Independent Professional and the Self-Employed), but that organisation is for people who want to be Independent Professionals or the Self-Employed – you don’t.
Update: IPSE is proving a lot more sympathetic about this than I expected. Contact them for help. Homepage | IPSE
Look at Unite or Unison and look at how they can help you.
Agency and temporary workers | Vulnerable workers | UNISON National
http://www.unitetheunion.org/how-we-...becomeamember/
There may be problems with this approach and I certainly would not tell an agency or client if you do join one.
But I would seriously consider it.
Despite what we say, we are genuinely sorry for those people who have been caught by the increasingly aggressive tactics of HMRC who see a loss of tax, and unscrupulous/cash-strapped employers who are kicking out their employees and bringing them back as ‘contractors’ without worker's rights or support, as HR and support costs money and quite frankly they don’t care.
Find someone who does care – find a union to help you.
(and come to this thread – ask your questions here.)
