[Closed] Contractor ninja tips

As a contractor of five years now

staying on top of expenses

Er, just keep on top of them, like do them regularly. No easier tip than that.

novel deductions

Makes you sound like Contractor ****er. There are no 'novel' deductions, just ones you're entitled to (like Use of Home, pension payments, meals/mileage for two years etc), and ones that are illegal.

keeping it all straightforward/simple

See above.

tip one make sure your not just a disguised employee

I assume this was withdrawn due to the sheer number of people they would have been chasing...

It helps, but by no means compulsory, to know what you are talking about.

Remember to always adopt a breezy, but aloof, air of indifference to any long-term institutional problems where you're working, personal issues with other staff, or shit involving the making of brews and the supply of biscuits. On account of not giving a flying ****!. If anyone tries to discuss any of these things with you, simply yawn and put the palm of your hand up in front of their face, on which you have written in marker NFI!

Everyone loves that shit! 😀

It helps, but by no means compulsory, to know what you are talking about.

Now [b]that's[/b] a novel idea 🙂

Binners - Don't forget to also do your best to hide your smug smirk when any conversations around annual appraisals, personal objectives and career development plans start

If you commute by bicycle to the client's site make sure you purchase the compulsory company bicycle that can be used by all employees of the organisation. If you are on the flat VAT scheme you can take advantage of claiming the VAT back on purchases > 2k

Contractor ninja tips

Get paid upfront.

Nothing worse than stealthily sneaking into a 17th century Japanese castle, killing some samurai and then submitting an invoice which gets rejected.

It's not like you can go back and unkill them is it?

This reliance on contractors is why it's so difficult for ninjas to get a full time staff position nowadays.

Don't forget to also do your best to hide your smug smirk when any conversations around annual appraisals, personal objectives and career development plans start

always refer to the employees as 'permies'. They love that.

signed

A. Permie

When talking to any full time member of staff, even if you do get quite pally, never, ever, ever, ever, under absolutely any circumstances, even give the slightest hint as to the actual hourly/daily figure you're being paid.

[b]EVER![/b] Not even ball-park!

Remember, no matter how ill and contagious you are, always always get into work.

Having been a contractor for about 8 years now, all the above, especially what binners said 🙂

[quote="binners"]as to the actual hourly/daily figure you're being paid.

Why on earth not?
Most of the permies here get paid more than the contractors in similar roles.........

WRT to deductions for the brief period I contracted for, I was told to never ever make a deduction for a home office.

As if you do HMRC can decide that its an asset of the company and when you sell your house you will owe them some money.

I was told to never ever make a deduction for a home office.
As if you do HMRC can decide that its an asset of the company and when you sell your house you will owe them some money.

Who by? Man in the pub or an accountant?

Why on earth not?
Most of the permies here get paid more than the contractors in similar roles.........

If you screwed HMRC and never took time off and threw in (dicked about without being caught enough) overtime contracting was ahead. Staff was about 10% pension (at that time it was more and final salary) 35 days holiday + BHols and a chunk of flexi available. Still if you wanted to work 45hr weeks 48 weeks of the year you would be better off #badlydisguisedemployees

Well, I budget for ten weeks non-billing a year (for hols, lulls between contracts, illness etc), and obviously fund my own pension, but I did the maths and worked out I am basically on twice a permie take-home with twice the pension contribution.

lucky you IHN, some places it's not like that - it was a specific example aimed mostly at the difference between a proper contractor who comes and goes as they want and sets their own schedule and the one who thinks they are but are basically a temp

Also, don't take it personally if you are walked from your contract as the lack of giving a sh1t works both ways. Having just literally seen 30 removed, not many of them were smirking as far as I could see (out the window).
Risk vs reward. Always a fickle judge that one.

[i]Also, don't take it personally if you are walked from your contract as the lack of giving a sh1t works both ways. Having just literally seen 30 removed, not many of them were smirking as far as I could see (out the window).
Risk vs reward. Always a fickle judge that one.[/i]

Totally agree (although notice periods apply both ways too)

keeping it all straightforward/simple so that I can just focus on delivering good work.

The simple answer is don't set up a Ltd company - just invoice as an individual, declare the income to HMRC via self assessment and pay the tax due.

"novel deductions" is just a euphemism for "I'd like to avoid having to pay my share share of tax that supports the NHS, Education and all the other things our society needs to function."

Well, I budget for ten weeks non-billing a year (for hols, lulls between contracts, illness etc), and obviously fund my own pension, but I did the maths and worked out I am basically on twice a permie take-home with twice the pension contribution.

This ^

don't set up a Ltd company

Why you say this?

Why you say this?

Because by setting up as Ltd company guarantees part of the revenue will be taken as dividends not pay - and the main purpose of doing that for most contractors is to reduce the tax to a lower rate than salary payments would normally attract. This applies to sole contractors providing a service but obviously doesn't apply to other businesses using Ltd status - e.g. those that buy raw materials, employ other staff etc etc.

"[i]...by setting up as Ltd company guarantees part of the revenue will be taken as dividends...[/i]"

No it doesn't. It certainly gives you the option to do that, but you could also choose to pay yourself a full salary and the appropriate tax / NI that goes with it.

A dividend is a distribution of profit and is entirely optional. You can retain the profit in the business if you want to.

...and many companies/agencies will only contract via LtdCo's

The simple answer is don't set up a Ltd company - just invoice as an individual, declare the income to HMRC via self assessment and pay the tax due.

Depending on what industry you are in, you won't get hired like this.

If you don't pay your proper taxes, HMRC can go after the employer/engager for the unpaid tax / NI and companies don't like the risk.

Because by setting up as Ltd company [i]guarantees [/i]part of the revenue will be taken as dividends not pay

And that is simply not true - especially if you're IR35 caught.

Because by setting up as Ltd company guarantees part of the revenue will be taken as dividends not pay

It doesn't guarantee anything, plenty of contractors keep the money in the company for medium to long term so they can continue to pay themselves when the job ends, others use it as a pension (that you could access early without penalty if you needed to), others have other business streams that need capital.

And even if you do take it as dividends each month, HMRC actually encourage this as it's the reward for the risk involved and presumably some civil servant sat down and did the maths that a flexible workforce paying less tax netted them more revenue than a less flexible one being less productive. The only time they view it as a bad thing is if you're inside IR35 as a disguised employee and not exposed to that risk.

My best piece of advice would be 'don't support a divisive culture at work' - feel free to help out your fellow workers using your acquired knowledge e.g. by suggesting the best brands of ride-on lawnmowers and in-ground swimming pools.
When they're wondering what to do with their spare salary for the month remind them of the benefits of saving money and suggest suitable locations to buy investment properties, or the merits of a diversified share portfolio.
Remember that you aren't there to change the business (else your contract would say 'consultant' doh) or do yourself out of a job- don't confuse the permies by sharing best practice or showing them the benefit of your wide experience.
At [s]knocking off time[/s] 5 o'clock leave promptly with a cheery 'good night all' - this will help them to realise that in this uncertain climate that you aren't in competition for their job, else you'd work on for another 3 hours.

Oh, and for light entertainment, if you end up in the pub/a restaurant with your fellow workers always grab the receipt, especially if you don't pay, muttering something about expenses 😈

My best piece of advice would be 'don't support a divisive culture at work'

This is good advice. When my permie colleagues make snide remarks about my daily rate, I simply remind them that my private jet doesn't fuel itself.

^ very good !

IMHO Expensify is a good app for keeping on top of expenses. Lose the paper!

Go with an accountant where you can use a modern on-line cloud based a/c solution Xero / FreeAgent / Crunch etc.