contracting vs permanent... pros n cons?
09-08-2004, 12:54 PM
#1
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contracting vs permanent... pros n cons?
ive just been put forward for a support job, but the thing is its contract... (with the probability of it moving to a perm role in the future)
i dont know much about how contracting works... so can anyone point me in the right direction etc.?
the money sounds pretty good (27k) but i assume there are bad points to this kinda work? like holidays n stuff?
i dont know much about how contracting works... so can anyone point me in the right direction etc.?
the money sounds pretty good (27k) but i assume there are bad points to this kinda work? like holidays n stuff?
09-08-2004, 12:58 PM
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Most contracts pay over the odds hourly but get no sick pay, holiday, training etc.
You need a limited or unbrella company to get paid, have a look at JSA (wankers) or Libert Bishop (Gods) websites which'll explain it a lot more.
Then there's good old IR35 which can proper screw you up tax-dodging wise.
If it's contract to perm you'll probably only do three months contract and then get offered the job to perm.
You need a limited or unbrella company to get paid, have a look at JSA (wankers) or Libert Bishop (Gods) websites which'll explain it a lot more.
Then there's good old IR35 which can proper screw you up tax-dodging wise.
If it's contract to perm you'll probably only do three months contract and then get offered the job to perm.
09-08-2004, 01:01 PM
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Originally Posted by Cola
Then there's good old IR35 which can proper screw you up tax-dodging wise.
Thanks - Sunny (who is seriously getting stung by IR35).
09-08-2004, 01:01 PM
#6
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just found some website explaining a few bits n bobs...
one thing that does look appealing is the ability to con the tax man
can i go down the pub n spnd loads on booze n fags then claim the tax back for BUSINESS USE or something? any maybe do the same with petrol etc.?
one thing that does look appealing is the ability to con the tax man
can i go down the pub n spnd loads on booze n fags then claim the tax back for BUSINESS USE or something? any maybe do the same with petrol etc.?
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09-08-2004, 01:04 PM
#8
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wtf is pro-rata?
jees my job sounds simple now coz i got a payroll/personnel dept who deal with all this shit for me
jees my job sounds simple now coz i got a payroll/personnel dept who deal with all this shit for me
09-08-2004, 01:06 PM
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In brief, what is IR35?
Since April 2000, anyone who is working via an intermediary, such as a company or partnership, will be caught by new rules if they fail the ‘IR35 test’. This test determines whether the person would be an employee if they were contracting directly with the ‘client’, rather than using an intermediary. If they are treated as being an ‘employee’, they will be caught by IR35 legislation. As such, the majority of their contract earnings will be taxed as though they are an employee.
How will we know if a client or potential client is caught by IR35?
The test is to determine whether or not the worker is effectively an employee. In order to decide this, a number of factors need to be considered.
Important factors will include:
Is the worker at financial risk in the project?
Can he make losses as well as profits?
Can he make more money if he does the job well?
Can he hire his own workers or provide substitutes for the job instead of himself?
Can he control his work? This can encompass where he works, when he works, what he does and how he does it.
The intention of the parties
The length of the contract
The pay structure e.g. holiday pay
The number of engagements the worker has.
At the end of the day, it is the over-all picture that matters and whatever the contract says, the reality of the situation takes precedence.
Since April 2000, anyone who is working via an intermediary, such as a company or partnership, will be caught by new rules if they fail the ‘IR35 test’. This test determines whether the person would be an employee if they were contracting directly with the ‘client’, rather than using an intermediary. If they are treated as being an ‘employee’, they will be caught by IR35 legislation. As such, the majority of their contract earnings will be taxed as though they are an employee.
How will we know if a client or potential client is caught by IR35?
The test is to determine whether or not the worker is effectively an employee. In order to decide this, a number of factors need to be considered.
Important factors will include:
Is the worker at financial risk in the project?
Can he make losses as well as profits?
Can he make more money if he does the job well?
Can he hire his own workers or provide substitutes for the job instead of himself?
Can he control his work? This can encompass where he works, when he works, what he does and how he does it.
The intention of the parties
The length of the contract
The pay structure e.g. holiday pay
The number of engagements the worker has.
At the end of the day, it is the over-all picture that matters and whatever the contract says, the reality of the situation takes precedence.
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