SimonT

As subject really!

Been talking to a mate about this but he didnt have much time and mentioned an IR35 and expense etc.

Still doing my research on all this before I take the plundge. Any info would be apprecaited.

ta

Si

Daveyboy

Cola is a veteran IT contractor. not much she doesnt know about the ins and outs of it. i'll point her toward this thread mate.

cfoster

I've just started my first contract role in IT (City based). I operate under my own ltd company (but via an agency) so have to do all the paperwork myself. You can operate under an 'Umbrella' company where all the shit is done for you, much better option if you are unsure what you are doing. Do a search for Atlantic Umbrellas (a company who specialise in this).

If you need a decent contact / agency let me know and ill put you in touch

Chris

Cola

Hello.

Right, I will no doubt be slagged down here (again) but I’ve been contracting since I was 18 and I’m 29 now so I should have a bit of a clue.

Contracting is all good if you’re okay(ish) with money. Always a good idea to put some away for a rainy day.. or when you catch the flu. IR35 isn’t the problem it once was, as many accountancy firms have found ways out.

As for how you want to work it, there are three main options. PAYE, which is pretty much temping and not worth a pish, Ltd company where you do all the paperwork (did it for a few years but all that employee and employer NI, corporation tax and VAT if registered, keeps me awake at night) or Umbrella, where someone else does the work for you and whereas you might not take QUITE so much home, you’ll certainly get a fair whack.

However last year I discovered ASMG (www.asmg.com – probably lol) and they rock. I take home about 92% of my daily rate at the moment which is not at all bad. How they do it is faitly complicated but IS legal. I know, I’ve been investigated by the IR and been let freeeeeee!

If you do contract I would highly recommend them. Shout me if you do take up contracting and if you do want to speak to ASMG and I could prob sort you a deal as I’ve sent a few people their way now.

HTH

Cola

Chris have you been with Atlantic long?! Erm, I'll PM you...

dvid

I have also just started my first IT contract, I use a company called Plan IT as my umbrella company and they sort out all my expenses and tax etc...

"The IR35 tax rules were designed to prevent tax avoidance by workers using personal service companies, composite companies and partnerships - these have all come to be known as "intermediaries". Workers had been using intermediaries to reduce their tax and NIC liabilities when really they should have been paying tax as if directly employed."

Basically I dont pay tax on my travel expenses, so out of my monthly salary they deduct the cost of my travel, charge my tax then add my travel costs back on to my final pay

I pay the umbrella company 2% a month for the privelage

HTH

oops just seen Cola's post

cfoster

blimey im deffo going to look at that ASMG, i've just applied for PAYE (only started last week so nothing has gone through yet)..

Ill read through and be in touch

cfoster

Im not with Atlantic Cola but a friend of mine is with them. I'm currently about to go PAYE through my own ltd company.

Chris

Cola

Yeah do shout me Chris. I get a finders fee that I'm splitting with people that join (it's only a oner though and I'm with them myself, so not in it for the wrong reasons!) 90% is a bloody good return IMO.

SimonT

cheers for all the help guys much apprecaited!

I alredy own a Ltd company doing web design and such (different income sources etc etc) can I get contracting work paid through this?

cheers

Si

Anonymous

If what Cola days is correct that she had been investigated and found in the clear with how she is doing it, then i would do that

IR35 kills your odds of getitng much out tax free through any of the traditional routes such as a LTD company.

dvid

Cola Isn't 2% a month pretty good?

That said out of what I should get (£520) I see £363 after the travel tax deduction etc, so am I right in thinking thats a bad return?

I thought I was doing well

Cola

Indeed Chip.

And the way you go through ASMG, IR35 is not relevant. Plus there is no need to save all reciepts and stuff as you don't get expenses.

Dan_L

What are of IT are you guys contracting in and what qualifications have you needed to get you started?

Thanks,
Dan

Cola

Don't worry, so did I when I started lol.

the 2% is just what they take.

If you get 90% with ASMG for example the ten percent you lose, pays them, pays the tax man, pays the insurance man...

cfoster

I'm just doing Desktop Support / Project Work for one of the banks in london. Got 8 years trade floor support experience within banking / broking, a cisco qualification and an mcse (although both are a couple of years out of date).

Chris

Anonymous

Sounds ideal, im always VERY skeptical of such schemes as sadly the way it works is often:

some accountant explains his "clever" way round the system
you employ their services
you pay very little tax
you get caught, its ENTIRELY on your head, and you pay the bill you should have in the first place with no come back on the accountant


but obviously once someone has tested the system and got away with it, thats a different story altogether


I was paying about 12% tax when i was doing it (outside of IR35) but thats cause i had a personal pension that required a take home pay of 30K at the time, so i was actually paying myself well over the odds through the books, although that also helps make you look more "cosher" anyway

SimonT

Qualified by experiance mate!

Do everything from php and mysql coding to networking and building pc's!

A lad I know has been contracting two years and is on £400 a day! All he does is PHP coding! But he sniffed most of that! Silly cunt!

Cola

Trust Chip, when the IR pulled me in I was SCARED! But ASMG backed me all the way and now I'm frrreee! I don't even have to do any more tax returns (had one every year since 18)

Oh and I did the same thing remy personal pension back then too

Cola

Oh and btw, I know FOOK all but somehow land on my feet every time. Dave'll back me up on that.. on my fook all knowledge anyway.

Anonymous

TBH mate, 400 a day really isnt such a big deal, i was making more than that easily at only 25, having only been out of uni all of about 4 years at the time.

Bit harder these days though, i used to make around 500 a day half a dozen years ago but would probably only make 350-400 a day now doing the same thing.

I didnt really need much in the way of qualifications or experience, its mainly about confidence IME


People are looking (with the stuff i did) for an expert, if you go in and act arrogant enough they assume you must be one

Cola

Ahh see but I get every job I interview for as a nice compliment to those arrogant arses. Someone has to be nice to the people.

dvid

I am straight out of uni just got my degree

Doing desktop support for a law firm in westminster

Got 1 year experience in another law firm on top of that which i got during my work year at uni

Anonymous

Mate of mine got a 60K bill, we were doing the same job, when i got looked into i farted and followed trhough, LOL

I really SHOULD have been within IR35 but i managed to do a good job of the paperwork so it didnt seem that way and got the client to make a phonecall on my behalf that was not particuarly true, LOL

IR35 is all about are you really basically just an employee

So the phone call went:

What hours does he work?
Ive no idea, he rarely comes into the office and doesnt really dicuss what hours he works
Where does he work
anywhere he wants, mainly from the UK though i think ,but again we dont get involved
How is he assigned tasks
We discuss our requirements with him, sometimes he quotes for work and sometimes he isnt interested.
Can he substitute other workers
I think he does sometimes, we dont care providing the work is done to his standards



If you have a client who will lie through his teeth like that (i was essentially 9-5 ish and was nearly always working from the office, lol) you are laughing from an IR35 point of view.

SimonT

Got some excellent info here cheers guys!

neilm

I am currently doing some work for a company called 'Churchill Knight' (www.churchill-knight.co.uk) who look after contractors, they are like an umbrella company, but are accountants and they manage YOUR Limited Company in the most tax efficient way that suits you best.

They charge £25+VAT per week which seemed pretty reasonable to me.

Seem well switched on and have some good schemes for people ensuring that you have enough aside for the VAT man and the Tax Man when they come knocking.

They also provide 'IR35 proof' contracts and a contract checking service to ensure you are within the law.


Although I dont use them, I run my own limited company because all the stuff I do is day work, proper consultancy rather than 6 months here, six months there etc.