Any accountants around?

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OP
OP
vickster

vickster

Legendary Member
If you go down the limited company route (the beneficial tax treatment is there because there are uncertainties nd risks involved) you would need to be very careful if there are benefits attached in addition to the day rate, that begins to quack like an employee rather than contractor. If you go down the contractor/limited company route and are then caught by ir35, the tax penalties are severe.
I'm hoping the FD can explain. I know other freelancers in the same line of business to whom I can talk too. I know you can't stay in the same place for ever. I'm not actually looking at it for financial reasons although a hypothetical day rate of £350 does look quite appealing on the face of it :whistle:
 

Cyclist33

Guest
Location
Warrington
Err - current job and possible new job?

For what it's worth - do what makes you happy

Conversely someone once said to me "never do your hobby for a job, you'll end up hating both".
 

Cyclist33

Guest
Location
Warrington
I'm thinking of quitting my current job and going back to my old company who have made me an offer. However, I'm wondering whether it might be worth talking to them about going back on a fixed term contract if this is an option. On the face of it, this looks rather more lucrative (50% more gross income). I realise that there are pros and cons to both, but don't fully understand how it all works on a practical level with HMRC etc.

I quite fancy being able to just do a job, get paid, go home without all the internal politics that inevitably goes with a seniorish role! Also, I know lots of people at other companies in the same field so could move around and try different companies etc. The variety would probably be good for me at this stage in my career/life. I've no one to support other than myself

Anybody out there have experience of such matters either from a finance perspective or because it's what you do

Thanks in advance

Judging from the amount of time people spend on this forum I'll wager there are more accountants on Cyclechat than there are cyclists!
 

PK99

Legendary Member
Location
SW19
I'm hoping the FD can explain. I know other freelancers in the same line of business to whom I can talk too. I know you can't stay in the same place for ever. I'm not actually looking at it for financial reasons although a hypothetical day rate of £350 does look quite appealing on the face of it :whistle:

Don't forget to factor in the normal employment benefits you forgo as a contractor:
  • Holiday pay
  • Sick pay*
  • Pension and associated life insurance
  • Continuous vs Gaps between contracts
* A few years ago my wife had a nasty skiing accident and spent the best part of 3 months off work on full pay. On this year's ski holiday, we crossed our fingers!


Plus accountant and business running costs

Don't just compare day rate to TFE salary equivalent.

IMO, it works best for people like my wife:
  • Kids launched
  • Pension fully funded
  • mortgage paid off
  • Spare cash already in the bank
  • made redundant on good terms
All of which means that contracting income = end of career bonus with no pressure.

The one downside for us is that "I'll take a day off, let's go to lunch" now costs £350 before lunch starts.
A fortnight's holiday is £3500 before you leave the house

Make sure you get your head around all these issues before going for it, it can be fantastic!
 
OP
OP
vickster

vickster

Legendary Member
I am single, no kids, money in the bank, mortgage small. I've done what I'm doing for over 15 years and would like a change. Not sure exactly what but this would give me an opportunity to move to a different specialism or try different things without starting further down the ladder. Also keep a senior job without having to do all the expected stuff like business development, people management etc!

I need to know what that hypothetical day rate might equate to over the year if say I did take 8 weeks off on hols or sick. I get no pension contributions yet where I am as a small company but I do save

I have a small endowment which would pay off the mortgage and some critical illness cover but don't need other life insurance
 
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