HELP!!! What does it mean to be a contractor?!

GibsonSt19

Hi all, I'm feeling rather confused.

I was recently contacted by a recruitment agency who said they'd seen my CV and hd a position for me to apply for.

I applied, got through to interview and have now been offered the position. Hurrah!... or so I thought.

They've just told me it's a contract position and that I now need to decide whether I want to 'opt out', and asked me about my umbrella company?!?!

This all means absolutely nothing to me, as I've always been a fully employed member of staff.

Can anyone shed any light all on this? They called to tell me I'd got the job at 16:50, and they want me to 'opt out' or remain 'in' before 5pm today, as I'm due to start work on Wednesday!!! :eek:

I really don't want to be doing anything I don't understand, so please please please... can anyone help?

msmicawber

Sorry, Gibson, was it the recruitment agency or the employer who asked you to become a contractor?

We use contractors at work - they are temps taken on for a particular amount of time or particular project. However, they remain employees of the recruitment agency and we pay the agency for the hours they work at a set rate.

GibsonSt19

Well, the recruitment agency didn't mention that it was a contract position, and neither did the employer. I've only just found out now!

I'm so incredibly lost

joanne0620

My DH used to be a contractor, I will ask him to post & explain when he gets home :cool:

If I remember correctly, you choose an umberella company and they basically do your books, sort your tax & NI out (I think!)

DH will know better, he should be home soon!

GibsonSt19

joanne0620 wrote:

My DH used to be a contractor, I will ask him to post & explain when he gets home :cool:

If I remember correctly, you choose an umberella company and they basically do your books, sort your tax & NI out (I think!)

DH will know better, he should be home soon!

Thank you so much, I look forward to it!

I can't believe how nervous I am about this. Should I be?!

Argh!

Astaroth

I think you need them to explain it all properly for you.

Some contractors are effectively self employed, which given that they are talking about umberella companies would seem is at least one of the options. I cannot say what they mean about "opt in or opt out".

Umberella companies basically do all the paperwork for you as a self employed contractor either for a set monthly fee or as a percentage of your earnings.

msmicawber

Well, contractors are normally paid at a higher rate than permanent employees to make up for the fact that they may have periods of unemployment between contracts.

Joanne's OH will be able to give you more detailed info., by the sound of it.

pikachu

I worked as a contractor on and off over 2 years and during that time used a number of different umbrella companies. I think I changed at least 4 times, usually with each contract
By far the best were Parasol
http://www.parasolit.co.uk/

Also this website should be helpful and the forums are pretty good (Bulletin Board)
http://www.contractoruk.com

The general aim to to get the admin fees as low as possible and a good policy on expenses (which we don't have to claim at all, but claiming at least travel is advised)

If you need any more help, feel free to ask

Nicola