Contracting for a living Page 2

    Next Last
  • Zidargh 28 Jan 2019 13:24:33 1,971 posts
    Seen 5 hours ago
    Registered 12 years ago
    I'm getting increasingly frustrated by HMRC's approach to contractors. The Chancellor speaks about empowering entrepreneurship in the UK and then at the same time strangles genuine, honest contractors with reduced tax benefits, etc.

    I was about to write to my accountant about this, but do any of you know of a lobbying group/forum whereby we can petition protection for contractors.

    Last I heard it was a "free country" and we have every fucking right to determmine the methods in which we work. I know that I pay my tax returns way ahead of deadlines and operate honestly, with integrity.

    Emigration is more and more appealing every month.
  • KnuttinAtoll 28 Jan 2019 13:33:45 7,134 posts
    Seen 13 minutes ago
    Registered 10 years ago
    I remember when I was starting off in the UK that HMRC started to tighten the screws with IR35, no idea how much worse it got since. I went down the umbrella route as I would've almost certainly been falling within IR35 so the risk of getting shafted by the tax man was too high.

    I did receive regular updates from my umbrella company about these issues via newsletter but I got the impression of futility as HMRC were going to do what they felt like regardless of industry lobbying/protesting etc.
  • Zidargh 28 Jan 2019 13:42:29 1,971 posts
    Seen 5 hours ago
    Registered 12 years ago
    I'm not a conspiracy theorist and I acknowledge that I'm more aware as I get older, but the nonsensical logic of the Western world leads me to one conclusion: rampant corruption.

    Having travelled extensively through Africa, I always said that for all of its horrendous problems, at least corruption is blatant and so you can navigate it accordingly. Within the UK, deals are struck "legitimately" by the big corporations/bodies and yet the same ridiculous results manifest. This, our housing crisis, the NHS, the way Brexit's unfolding.

    And what angers me more is at best we, the public, respond with apathy and a sort of fatalistic, "Ah yeah... politicians, eh?" We just take this sitting down.

    Forgive me for getting political--I clearly needed to vent.
  • Zidargh 28 Jan 2019 13:44:21 1,971 posts
    Seen 5 hours ago
    Registered 12 years ago
    Forgive the double-post, but I wanted to highlight this for you. My accountant just sent me this:

    https://www.contractorcalculator.co.uk/ir35_campaign.aspx
  • THFourteen 28 Jan 2019 13:46:36 51,943 posts
    Seen 1 hour ago
    Registered 14 years ago
    @Zidargh

    Maybe corruption at a macro level, but at a micro level god you wouldn't want to live in India that's for sure. Literally you couldn't stop to help someone in the street because the local police are so corrupt the minute they know you are a foreigner or a foreign national they'll chuck you in jail regardless of whether you were trying to help or not until you pay them.
  • Zidargh 28 Jan 2019 13:50:36 1,971 posts
    Seen 5 hours ago
    Registered 12 years ago
    @THFourteen Acknowledged but I'm not satisfied with the "It could be worse" argument.

    These are our lives and as far as we objectively know, we only have one of them. So we should be striving for the best possible.

    Anyway, not to derail the thread.
  • RyanDS 28 Jan 2019 13:52:07 12,745 posts
    Seen 5 minutes ago
    Registered 11 years ago
    Zidargh wrote:
    I'm getting increasingly frustrated by HMRC's approach to contractors. The Chancellor speaks about empowering entrepreneurship in the UK and then at the same time strangles genuine, honest contractors with reduced tax benefits, etc.

    I was about to write to my accountant about this, but do any of you know of a lobbying group/forum whereby we can petition protection for contractors.

    Last I heard it was a "free country" and we have every fucking right to determmine the methods in which we work. I know that I pay my tax returns way ahead of deadlines and operate honestly, with integrity.

    Emigration is more and more appealing every month.
    Probably the best shout:
    https://www.ipse.co.uk/
  • Deleted user 28 January 2019 14:18:54
    Zidargh wrote:
    Forgive the double-post, but I wanted to highlight this for you. My accountant just sent me this:

    https://www.contractorcalculator.co.uk/ir35_campaign.aspx
    They've got to pay for that shortfall of 6.2bn because of the corporation tax cut somewhere.
  • Nazo 28 Jan 2019 14:40:50 978 posts
    Seen 40 minutes ago
    Registered 10 years ago
    Not sure how corruption comes into it. Far from being entrepreneurs driving the economy forward, most contractors just do the same jobs as regular employees but pay less tax. I know people whoíve been working full-time as contractors at the same place for years.
  • fontgeeksogood 28 Jan 2019 14:45:47 6,047 posts
    Seen 7 minutes ago
    Registered 1 year ago
    It's just tax avoision, user nazo
  • RyanDS 28 Jan 2019 15:17:56 12,745 posts
    Seen 5 minutes ago
    Registered 11 years ago
    Nazo wrote:
    Not sure how corruption comes into it. Far from being entrepreneurs driving the economy forward, most contractors just do the same jobs as regular employees but pay less tax. I know people whoíve been working full-time as contractors at the same place for years.
    There is an argument that they should be able to pay less tax as they don't have any employee rights. No sick pay, holiday pay etc. No notice period.

    Whether that is offset by higher base pay or lower taxes to account for the risk though is debatable.

    Also those "most" contractors you talk about above already should pay full tax as they are clearly inside IR35. If they don't it is not a legal issue to be resolved, it is an enforcement issue.
  • sport 28 Jan 2019 15:26:06 14,979 posts
    Seen 2 hours ago
    Registered 14 years ago
    I know how I'll avoid tax, I'll become a contractor - now I'll just forego job security, paid holiday, sick pay and any company benefits. Then I'll pay corporation tax, dividend tax as well as accountant fees to make sure my tax filings are in order.

    Good thing I can charge £500/hr to make up for it... Hmmm... looks like the sme who needs some work done can't afford anything near that. £40/hr it is then.

    Wow, being a contractor sure is easy.
  • Zidargh 28 Jan 2019 15:29:55 1,971 posts
    Seen 5 hours ago
    Registered 12 years ago
    @Nazo Perhaps try it out before giving your views.
  • PazJohnMitch 28 Jan 2019 15:40:11 14,454 posts
    Seen 2 hours ago
    Registered 12 years ago
    When one of my mates went freelance* he set his price based on 1 month of solid bookings (200 hours) paying off his yearís mortgage.

    Based on other things he has said I think this equates to about 400 hours paying the same as his previous full time employment. (Which in turn is an hourly rate of about 5 times that of a full time employee).

    To be honest I think he undercharges as his books are always full but he is doing well.

    *Freelance is similar but a different term for a different industry. He generally does lots of small jobs instead of long term placements.
  • Nazo 28 Jan 2019 17:06:22 978 posts
    Seen 40 minutes ago
    Registered 10 years ago
    Zidargh wrote:
    @Nazo Perhaps try it out before giving your views.
    What makes you think I havenít? I was an IT contractor for several years. It was sold to me by other contractors I knew as being a way to make more money and pay less tax, which is pretty much what it was.
    So letís not pretend this is some noble crusade of little guy being unjustly treated. Youíre pissed off that your gravy train might be coming to an end. Fair enough, no doubt I would be too if I was still on it, but I wouldnít try to make out it was anything else.
    I agree with the point above that the problem is more about enforcement than the rules as they stand though.
  • Zidargh 28 Jan 2019 17:40:38 1,971 posts
    Seen 5 hours ago
    Registered 12 years ago
    @Nazo You're taking a very generic perspective of contracting. There's a lot more nuance to why and how contractors have to engage with clients in the way they do. Sometimes they don't have a choice, but in order to work, they have to accept more administration and less or no benefits.

    Freelancers for example, are in drastically different circumstances to IT contractors.
  • Nazo 28 Jan 2019 18:23:09 978 posts
    Seen 40 minutes ago
    Registered 10 years ago
    Yes, I wouldnít argue with that.
  • fontgeeksogood 28 Jan 2019 18:39:43 6,047 posts
    Seen 7 minutes ago
    Registered 1 year ago
    But by the same token, I doubt freelancers tend to get into the uh, investment vehicles / offshore director loans / grift du jour in the same numbers as IT contractors
  • Not-a-reviewer 28 Jan 2019 19:37:22 5,700 posts
    Seen 2 hours ago
    Registered 5 years ago
    I contracted for two years before going back perm at the same place, that was purely because I have a young family and canít travel and Iím not moving. Job security is important for now.

    It did get me an extra £10k over what a normal perm would got where I am, and 18 months later I got put in charge so now recruiters are all over me.

    Ultimately it depends on your circumstances, what you want from work and how critical and unique your skills are. Iím lucky that thereís a massive shortage of people that do my job, one day Iíll go back to contracting.
  • Carlo 16 Apr 2019 21:03:04 20,537 posts
    Seen 7 hours ago
    Registered 14 years ago
    So um, is now a bad time to be thinking about contracting in the UK?

    Just been offered one, vs a perm role and kinda need to decide. I think it's more money, but this matters a lot if I can be regarded as outside IR35.

    Never done a contract before

    I've been reading about contracting for a week on and off now, and can't see any clarity at all

    Edited by Carlo at 21:04:11 16-04-2019
  • Frogofdoom 16 Apr 2019 21:16:23 13,222 posts
    Seen 14 minutes ago
    Registered 7 years ago
    Depends if you can afford to have 0 job security. If you have cash in the bank to cover any disasters then go for it.
  • Load_2.0 16 Apr 2019 21:24:08 29,324 posts
    Seen 7 minutes ago
    Registered 16 years ago
    The whole expense claim thing is pretty much shut down.

    If you can be bothered setting up a ltd company and you get a decent day rate the contractor market is just as busy as its always been.

    As mentioned you lose job security and benefits but get more £££
  • Trowel 29 May 2019 13:55:20 22,531 posts
    Seen 2 hours ago
    Registered 16 years ago
    Bump. Just set up my Ltd, any recommendations on a simple business bank account? I like the concept of Starling, but restricting access to app only isn't ideal for me. Anyone use Cashplus or similar?
  • RyanDS 29 May 2019 14:02:48 12,745 posts
    Seen 5 minutes ago
    Registered 11 years ago
    I use Cashplus and they do the job. Nice and cheap.

    I can also recommend a good accountant if you want, and I think I may have referrals for discounts on your Insuranceís.
  • Trowel 29 May 2019 14:06:31 22,531 posts
    Seen 2 hours ago
    Registered 16 years ago
    Thanks. Accountant is all sorted, but happy to look at any insurance referral you have.
  • RyanDS 29 May 2019 14:10:48 12,745 posts
    Seen 5 minutes ago
    Registered 11 years ago
    Hmm. Only referral I have is I get a £40 amazon voucher and you get nothing. But Iíd recommend them anyway. They are kingsbridge (just google them).

    When I had to renew last week they were the cheapest and they come quite highly recommend. They price match as well. (Unless you want to give me £40 in which case I can get them to call you)

    Edit: I still canít believe I have to pay £500 odd a year for that shit though. Another contractor tax.

    Edited by RyanDS at 14:14:26 29-05-2019
  • GuybrushFreepwood 29 May 2019 14:48:00 945 posts
    Seen 55 minutes ago
    Registered 10 months ago
    I used HSBC for my Business Banking. First year to 18 months was free. They were quick to setup and never had any issues with them. My accountant was setup for read only access which simplified accounts.
  • Carlo 29 May 2019 15:14:47 20,537 posts
    Seen 7 hours ago
    Registered 14 years ago
    I use Metrobank for my business account. Transactions are free if you have over £1k in the bank.

    They're perfectly fine for the simple stuff, significantly their banking system does support/integrate with the accounting app I use (freeagent) which my accountant supplies for free, so it all works out nicely.

    I pay £100pm for my accountant and that covers everything. Worth the money from what I can see.
  • Trowel 29 May 2019 17:06:29 22,531 posts
    Seen 2 hours ago
    Registered 16 years ago
    Thanks all. Have gone with Santander in the end for simplicity as I've used them for a lot of personal accounts in the past which have decent online facilities, plus a branch round the corner from me, and they have an offer for the first 18 months free.
  • mrpon 29 May 2019 17:55:37 35,211 posts
    Seen 3 minutes ago
    Registered 13 years ago
    @Carlo I thought Metrobank was tanking at the moment?

    https://www.thisismoney.co.uk/money/markets/article-7072811/How-Metro-Bank-chief-cashed-quarter-holding-shares-tanked-pocketed-2-5m.html
  • Next Last
Log in or register to reply

Sometimes posts may contain links to online retail stores. If you click on one and make a purchase we may receive a small commission. For more information, go here.