[Closed] Contract/Hourly paid.....

.anything I specifically need to be aware of with regard pay, conditions, holiday's etc

You get an hourly rate, no holiday, terms; as per your contract.

The rate needs to be significantly more than you would earn on a permanent basis because you are only a short term hired hand. Totally responsible for your own training, time off, sick pay, pension, holiday, health insurance, transport. Some contracts allow a certain amount for expenses, but if not, you claim them back through your business account. The self-employed generally pay a lot less tax. The rate you get has to be sufficient to make it worthwhile unless there are no other options, in which case you have little adantage to the insecure working position you are in.

To find the going rate for your intended contract, ask others who are in the business, recruiters and look online.

And I understand that (if it hasn't changed already) that employers are soon to have to offer contractors the same rights as agency/temp. staff too.

The self-employed generally pay a lot less tax.

You are having a laugh right? Self-employed people are paying pretty much the same tax as an employed person. If the company is limited and the owner is earning significantly over the base rate tax level then they can work around paying less tax maybe. But self-employed - nope. In fact just had the very same conversation with my bank and my accountant after losing almost all of my company 'savings' to a huge tax bill because we went into the 40% tax bracket. Now they assume I will earn that again next financial year so want to take more at 40% on account for the coming year.

With the current (general) trading outlook - I think not!

Yes, paying on account is very unreasonable. They make the foolish assumption that you will make as much as you did the year before. It's like paying for something that doesn't yet exist - another great idea from Labour!

I still mainatin that the self-employed pay less tax than someone on PAYE. Even if it is just because you can legitimately claim for things which a PAYE person can't. If you are paying the same then I think you need to get a different accountant.

Even if it is just because you can legitimately claim for things which a PAYE person can't.

There is that, but it accounts for a very small proportion of income. I do get a couple of benefits such as running my car (self-employed can claim for a car as a tax deductible expense) and my mobile bill paid, but not a great deal else unfortunately.

You need to set yourself up as a director of your company & work for that company rather than directly, then pay yourself a bit & take the rest as a dividend payment (i think that's about the right term?) so you can (apparently) get round income tax rules. apparently.

It's something like that anyway. A couple of friends did a blinder - setup a recruitment agency of sorts, that their employer hired them through. Of course that agency takes a set fee for the contract period, so basically they earn even more for doing next to nothing!

You are having a laugh right? Self-employed people are paying pretty much the same tax as an employed person. If the company is limited and the owner is earning significantly over the base rate tax level then they can work around paying less tax maybe. But self-employed - nope. In fact just had the very same conversation with my bank and my accountant after losing almost all of my company 'savings' to a huge tax bill because we went into the 40% tax bracket. Now they assume I will earn that again next financial year so want to take more at 40% on account for the coming year.

With the current (general) trading outlook - I think not!

I feel your pain.

hmmm, by becoming a contractor are you not just waving goodbye to a reduncancy payment in the curent climate? How safe is your job?

If you are doing the same job for the same people but on an hourly rate you'll most definitely fall into IR35 legislation which basically means paying shed loads of tax for little benefit.

You need to set yourself up as a director of your company & work for that company rather than directly, then pay yourself a bit & take the rest as a dividend payment (i think that's about the right term?) so you can (apparently) get round income tax rules.

But it is all swings and roundabouts. As the owner of the business the car (lease, fuel, servicing etc) is a tax deductible expense. If I was a director of a limited company it becomes a benefit in kind and therefore taxable. As I have said before, unless I was earning consistently well over the 40% bracket, there really is little to choose between the two. Or that is, as has been advised by my accountant and backed up by the business manager at my bank.

And you also pay income tax on dividends - just not at the same rate (10% IIRC)

I have recently joined the redundancy club, may have the opportunity of a 12 month temp contract with another firm....just trying to assess what the implications are money wise I dont want to sell myself short if the chance does present it's self