Contractor Jobs…..advice please.
I recently applied for a job within a large organisation.
They are going through a period of change but have offered me the position on a contract basis for 3 months. The rate offered is very poor in my opinion.
Should I expect the daily rate to be higher than the salary of the position advertised?
The benefit is that once I'm on the inside there may be other openings available to me.
Anyone have experience of being a contractor for a large firm?
Has anybody heard of a company called Giant who I've been reffered to to manage my PAYE etc for me?
thanks.Posted 7 years agotronMember
Contract rates are always higher than normal wages. Best way is to work via a Ltd company.
If you really do mean contract basis, you're liable for NI, Tax etc. and will need to employ the services of an accountant. The upside is that you can expense a hell of a lot of stuff to save tax (ie, breakfast, lunch and dinner if you're at work for a long day). But still, I'd expect contract rates to be at least double those of the salary.
On the other hand, if they've offered you a 3 month contract on the payroll, to do the job and see if you're any good at it, then they're just being cautious / taking the mickey, depending on your perspective.Posted 7 years agostevehSubscriber
The day rate should be a lot higher than they equivalent salary. Taking you on as a contractor saves them employers national insurance contributions (8% I think), pension (say 10% maybe a lot more), holiday pay (5%) etc.
My last job was a contract and was around double what the standard staff rate would have been.Posted 7 years ago
The contract offered is on a self employed basis.
They've offered £150 as a day rate. My previous employed position was about double that (including pension & benefits)
The advertised job that I went for was about £250 if you work out the package on a daily rate.
I have a feeling they're taking the piss!
The initial reason for applying for the job, except that I'm unemployed was that it was based in my home town where previously I was away a couple of days a week.Posted 7 years agoMackemMember
Personally, i'd take the job, do a good job and renegotiate after the 3 months. It's not that easy out there, it's better than nowt and at least it's at home. Try and get it changed to an hourly rate though or get "a day" defined as 8 hours, so if you end up doing 12 hour days you come out with a bit more.Posted 7 years agoclubberMember
They're taking the p!ss. Unless you're desperate as you wouldn't be able to find other work, tell them where to stick it. Contracts must always pay more since you're not getting any benefits and also less job security.
On a short contract, use an umbrella company – they look after all the tax/invoicing/etc for you but charge a percentage as a fee – wife wife recently did this in between redundancy and her new job and used Paymatters – they seemed decent enough though getting paid typically took a week longer than they had originally said but they were easy enough to deal with on the phone and enter timesheets online.Posted 7 years agoluked2Member
Watch out for IR35, or you will be in for a nasty surprise.
If the tax man thinks that to all intents and purposes you're working for this company as a regular employee then you will be expected to pay the same amount of tax and NI as a regular employee.
That will include employer's NI contributions, which you will get to pay (ISTR).
The best way to avoid it is to work for more than one company.Posted 7 years agoversesSubscriber
I used Giant a few years ago when contracting.
A few people told me that they were expensive for what they were providing, compared with an accountant etc, but they took all the hassle/headache away from it. I essentially felt like a normal employee, but was paid by and submitted expenses, etc to Giant rather than the client.
If I was contracting again, I'd happily use them for short term positions, but would probably look at going the Ltd company route for longer term.Posted 7 years ago
The topic ‘Contractor Jobs…..advice please.’ is closed to new replies.