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Lord Percy |
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Lord Percy World Chat Champion
Joined: 03 Aug 2012 Karma :
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Posted: 11:13 - 25 Oct 2019 Post subject: |
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I mean proper proper countryside. I grew up in North Yorkshire
To be fair Oxford is alright. The little roads around Whitney are like a whole other country to me. Thatched roof cottages etc. No idea about Kent though. |
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P. Red Rocket
Joined: 14 Feb 2008 Karma :
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Posted: 13:13 - 25 Oct 2019 Post subject: |
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Good for stabbings. It isn't bad.
Worth checking some jobs in London, some very good paying stuff for intermediate levels, it'd be silly to not consider |
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Lord Percy |
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Lord Percy World Chat Champion
Joined: 03 Aug 2012 Karma :
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Posted: 05:31 - 20 Nov 2019 Post subject: |
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Been offered a job Software engineer for an interesting company right next to the Yorkshire Dales.
Salary offer was strange, but I think I got the best out of it. Since it was done via a recruitment agency, I was given two options:
1. Permanent contract with the employer at £25k
2. Contractor style work where I'm paid a £150 daily rate, which works out at £31k-£39k, depending on number of sick/holiday days taken.
The reason the employer would only offer 25k is because they would have to pay 25% up front to the recruiter, so I'd be costing them at least 31k no matter what.
Anyone on here have experience with these things? It seems option 2 is vastly better. I know I'm foregoing pension etc, but it still seems like the obvious choice. It was described as "12 months contract-to-permanent", meaning after 12 months if they want to keep me I can carry on with the same level of salary, but with permanent contract. They have two staff who've already gone this route so it doesn't seem like a bluff.
This has been a very interesting week either way. I put my CV up on cv-library and have since been utterly swamped by recruiters. I don't even mind if this new job doesn't work out, there's obviously tons of stuff out there. I've never had such leverage in the jobs market, what a boon!
As for the London option, I'm still considering that and did in fact have a recruiter contact me yesterday telling me he had roles up to 120k, which I still can't get my head around. But life is good and cheap up in Yorkshire so maybe that 31-39k is enough, and with none of the London rat race to contend with. |
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Hetzer |
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Hetzer Super Spammer
Joined: 19 Feb 2007 Karma :
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P. |
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P. Red Rocket
Joined: 14 Feb 2008 Karma :
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Lord Percy |
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Lord Percy World Chat Champion
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MarJay |
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MarJay But it's British!
Joined: 15 Sep 2003 Karma :
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Posted: 12:50 - 20 Nov 2019 Post subject: |
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I'm not sure you can really live on £25k these days... But watch out for the contract side, as you could get hammered by IR35 regs.
https://en.wikipedia.org/wiki/IR35 ____________________ British beauty: Triumph Street Triple R; Loony stroker: KR1S; Track fun: GSXR750 L1; Commuter Missile: GSX-S1000F
Remember kids, bikes aren't like lego. You can't easily take a part from one bike and then fit it to another. |
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Lord Percy |
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Lord Percy World Chat Champion
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MarJay |
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MarJay But it's British!
Joined: 15 Sep 2003 Karma :
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- Super Spammer
Joined: 22 Oct 2013 Karma :
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Posted: 16:46 - 20 Nov 2019 Post subject: |
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Lord Percy wrote: |
Thanks for the heads-up, however I can fairly confidently say I won't end up some kind IR35 victim! The employer has a few hundred staff and has projects with UK and EU government arms, so things are surely above board.
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It is above board, it just means you'll need to register as IR35 and pay more tax.
It's got nothing to do with how many projects or staff your "employer" has and you calling them an "employer" puts you straight into IR35 territory, as you're only working for the one entity.
If you're contracted to one or mainly one "employer" you will get caught under IR35 if you go Limited.
I'm a one man band and limited, but can categorically say I don't fall under IR35, for the simple reason that I am a legitimate one man limited company as I'm contracted to nobody and supply a mainly on demand service, to over 50 different businesses with over 350 staff. These businesses are my customers, not my employers. ____________________ TZR250 2MA road, TZR250 1KT road, TZR250 2MA race, TDR250, YZF-750R Boost colours.
Jaguar S Type 3.0 V6 Sport R, VW Transporter T5 GP LWB Shuttle 140ps DSG. |
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Lord Percy |
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Lord Percy World Chat Champion
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P. |
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P. Red Rocket
Joined: 14 Feb 2008 Karma :
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Posted: 08:43 - 21 Nov 2019 Post subject: |
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Sounds like you'll be doing more work for low money, personally wouldn't bother but I don't know your situation. I'd be able to live on 16 hours a week min wage, but it's just lucky to be able to |
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Lord Percy |
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Lord Percy World Chat Champion
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- Super Spammer
Joined: 22 Oct 2013 Karma :
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Posted: 10:42 - 21 Nov 2019 Post subject: |
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Lord Percy wrote: |
This is what the recruiter told me specifically:
- I would be working via an umbrella company |
Then you're Limited status is pointless as you'll be treated as a PAYE employee.
Quote: | If you work through an umbrella company, you will be taxed as an employee. You will pay income tax and National Insurance Contributions on your income.
If your contract work is caught by IR35, and you work via your own limited company, then all of your income will be taxed as ’employment’ income. |
https://www.contracteye.co.uk/ir35-umbrella-company-contractors.shtml
Lord Percy wrote: | - It would be as if I were a standard employee at the place of work (manager told me the same after offering me the job too) |
HMRC must see you as a genuine Limited company and genuinley "self empolyed", not an employee, or you come under IR35.
Quote: | The Revenue states that they will take an overall view of a contractor's position to determine whether they will be deemed 'employed' under the rules, therefore any amended contracts should also reflect your working practices.
It is clearly in all contractors' interests to be viewed as 'self employed', or at least for part of your income to be IR35-free. |
Lord Percy wrote: | - I fill in a simple time sheet each week |
Sheets tend to not bypass the law.
Lord Percy wrote: | - PAYE and NI is deducted automatically
- Paid weekly, with no extra bureaucracy to deal with |
Eh? So you're just an employee of the umbrella company then. Where are you thinking you need to be limited? If you're paying all your tax and NI as an employee, what's the point of going through all the hassle of being limited?
If you're Limited, you're either genuinely self employed and not IR35 or employed and liable to IR35. I'm not sure how this recruiter thinks you can be both. ____________________ TZR250 2MA road, TZR250 1KT road, TZR250 2MA race, TDR250, YZF-750R Boost colours.
Jaguar S Type 3.0 V6 Sport R, VW Transporter T5 GP LWB Shuttle 140ps DSG. |
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Lord Percy |
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Lord Percy World Chat Champion
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- Super Spammer
Joined: 22 Oct 2013 Karma :
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Posted: 10:40 - 22 Nov 2019 Post subject: |
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Lord Percy wrote: |
I never said anything about myself being Limited. I highlighted your mention of that word because it seemed to be the opposite of what I'd been told. Specifically, working via an umbrella company means that I am not Limited. As you said, I'm just an employee of that company, so I think I'm right in thinking it would all be fine?
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Eh? You don't automatically become "Limited" or not. You form a Limited Company yourself.
You clearly don't really understand how this works, nor have bothered to read the link provided, about what IR35 actually is.
Lord Percy wrote: |
Thanks for the heads-up, however I can fairly confidently say I won't end up some kind IR35 victim! The employer has a few hundred staff and has projects with UK and EU government arms, so things are surely above board.
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The company having a few hundred staff is not a reason to fall under IR35 or not, it's whether you work as a contractor under the guise of a limited company, which you've setup yourself, when you're really employed and not genuinely self employed.
It sounds like you had no intention of forming a Limited company to work as a contractor, as most do, so would not be considered as falling under IR35. You're just a PAYE employee with a 12 month contract, rather than a proper "contractor". ____________________ TZR250 2MA road, TZR250 1KT road, TZR250 2MA race, TDR250, YZF-750R Boost colours.
Jaguar S Type 3.0 V6 Sport R, VW Transporter T5 GP LWB Shuttle 140ps DSG. |
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Lord Percy |
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Lord Percy World Chat Champion
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- Super Spammer
Joined: 22 Oct 2013 Karma :
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Posted: 13:52 - 22 Nov 2019 Post subject: |
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Lord Percy wrote: | I know what Limited means. I was simply responding using the terminology you had used. I did read up on all the links, but was confused about how it applied to me - an understandable confusion, given that we've now ascertained that I am indeed not affected by it.
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Only if you go option 1, which is a PAYE employee. You were hinting that this was not the best or your chosen option.
Option 2, is clearly you working as a contractor, which would clearly involve you registering as self employed or limited, the limited option which would clearly come under IR35.
Lord Percy wrote: | I was given two options:
1. Permanent contract with the employer at £25k
2. Contractor style work where I'm paid a £150 daily rate, which works out at £31k-£39k, depending on number of sick/holiday days taken.
Anyone on here have experience with these things? It seems option 2 is vastly better. I know I'm foregoing pension etc, but it still seems like the obvious choice. |
____________________ TZR250 2MA road, TZR250 1KT road, TZR250 2MA race, TDR250, YZF-750R Boost colours.
Jaguar S Type 3.0 V6 Sport R, VW Transporter T5 GP LWB Shuttle 140ps DSG. |
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Lord Percy |
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Lord Percy World Chat Champion
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- Super Spammer
Joined: 22 Oct 2013 Karma :
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Posted: 15:01 - 23 Nov 2019 Post subject: |
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Lord Percy wrote: | Maybe I used the wrong terminology. Like I said, it's all new to me. The recruiter used the word 'contract', so I used that word, but probably didn't apply it correctly.
Given what you've outlined, I think what I meant to say was:
1. Permanent full-time contract with the employer
2. Work under an umbrella company with the employer as a client for 12 months.
In both cases I think I would be correct in saying I am an employee, not a contractor.
It still seems a bit of a haphazard situation though. |
I think you'll find that option 2 requires you to invoice them and sort out your own tax as a contractor, not a PAYE employee. Most contractors would do this as a limited company, but IR35 was brought in to stop this. ____________________ TZR250 2MA road, TZR250 1KT road, TZR250 2MA race, TDR250, YZF-750R Boost colours.
Jaguar S Type 3.0 V6 Sport R, VW Transporter T5 GP LWB Shuttle 140ps DSG. |
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Lord Percy |
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Lord Percy World Chat Champion
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- Super Spammer
Joined: 22 Oct 2013 Karma :
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Posted: 16:23 - 25 Nov 2019 Post subject: |
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Lord Percy wrote: | Talked to recruiter again today and asked him about all this.
Specifically, I would be working as an employee of an umbrella company, who are contracted to send me to work for 12 months at the given location. I do my work and receive weekly pay slips, with tax and NI deducted as is standard for PAYE employees. The only additional 'bureaucracy' required of me is a weekly time sheet!
IR35 was discussed too - I do not come under it at all.
All is good. |
So really, you're just a PAYE employee with a 12 month contract, not a contractor. Seems an odd way to do it, but I should imagine it's for the benefit of the recruitment firm. Does anyone need to offer you holiday or sick pay under this scheme? ____________________ TZR250 2MA road, TZR250 1KT road, TZR250 2MA race, TDR250, YZF-750R Boost colours.
Jaguar S Type 3.0 V6 Sport R, VW Transporter T5 GP LWB Shuttle 140ps DSG. |
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Lord Percy |
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Lord Percy World Chat Champion
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- Super Spammer
Joined: 22 Oct 2013 Karma :
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Posted: 10:44 - 26 Nov 2019 Post subject: |
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Lord Percy wrote: | mpd72 wrote: |
So really, you're just a PAYE employee with a 12 month contract, not a contractor. Seems an odd way to do it, but I should imagine it's for the benefit of the recruitment firm. Does anyone need to offer you holiday or sick pay under this scheme? |
No, any days off are simply unpaid. However, this was taken into consideration when working out the daily rate I'd be paid, hence the "31-39k' rate I mentioned (i.e. assuming an 'extreme' of 30 days holiday and 10 days sick leave, it would be 31k).
I asked about who benefits most from this. From what I was told, it seems to be:
Myself:
Pro: Higher salary
Con: Will need manually handle sick/holiday/pension
Company:
Pro: They get the worker they want and don't have to pay up front fees
Con: Costs a little bit more, and if I leave they'll be back to square one with the recruiter
Recruiter:
Pro: They placed a candidate so they get their £££
Con: Their £££ is spread out over 12 months instead of a tidy lump sum |
That's confused me even more now. It sounds like this..
https://www.paystream.co.uk/blog/2017/january/umbrella-company-vs-pay-as-you-earn-paye-whats-the-difference/
Clearly, this is now the preferred way of contractors getting around IR35. What HMRC think of it is anyone's guess.
There's lots of info about dodgy "umbrella schemes". Might be worth a read.
Quote: | Illegal ‘umbrella’ schemes – what to look out for
Our advice to anyone is please don’t sign up to any of these schemes!
Anything that doesn’t pay 100% of your earnings through RTI payroll. The only reason a provider would offer to not pay 100% of your income via payroll is to disguise your income as something other than remuneration, and therefore avoid tax. You should be suspicious of any provider offering to split your income into two payments, one of which is taxed and the other is not. Our advice is don’t sign up to these schemes.
Don’t believe anything that they tell you.
Just because they state they are compliant with HMRC, that does not mean that they are.
Avoid anything stating “HMRC Approved” as HMRC do NOT approve anything
They will lie in order to entice you to their scheme.
They will not support you if HMRC investigates.
They are deliberately and aggressively targeting susceptible workers who have had their income reduced as a result of tax changes in the public sector |
https://www.itcontracting.com/umbrella-companies-and-the-ir35-off-payroll-rules/
It seems odd that your umbrella company offers no benefits.
Quote: | Umbrella employers provide contractors with full employment rights, all statutory benefits including holiday pay, maternity pay, paternity pay, sickness pay, pensions, redundancy pay and adoption pay |
____________________ TZR250 2MA road, TZR250 1KT road, TZR250 2MA race, TDR250, YZF-750R Boost colours.
Jaguar S Type 3.0 V6 Sport R, VW Transporter T5 GP LWB Shuttle 140ps DSG. |
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Lord Percy |
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Lord Percy World Chat Champion
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Posted: 11:35 - 26 Nov 2019 Post subject: |
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The umbrella company is Churchill Knight, they seem to be mostly well reviewed: https://uk.trustpilot.com/review/www.churchill-knight.co.uk
As for benefits, I just filled out their registration form. Part of it stated I could arrange to set aside some of my daily rate such that I can take days off and still be paid in full for it. I opted out of that. I'd rather just have a day off and know plainly that that's a day of no income.
After 12 months there's a pension scheme too, but at that point I'll have finished the agreement with the recruiter and can shift over to a permanent full time contract at a fair salary with the company I'm working for.
I suspect this umbrella company has various setups for the way their members/"employees" want to work. I'm quite happy to go with a simple daily rate where 1 day = £X. It's how I've been doing it in Chinachinachina for the past couple of years anyway. |
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Old Thread Alert!
The last post was made 4 years, 151 days ago. Instead of replying here, would creating a new thread be more useful? |
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