Moving from permanent, PAYE job into contracting - best way

gettingready

Thanks for all the replies.

Yes, will go with SJD.

Makeyourdaddproud - not sure who is "he" but I am definitely a "she" and yes, it is an IT (training) contract and in real terms about 3.6 times my current salary so yes....nice one.

My current workplace did not allow me to take A/L for the last 2 weeks of my 6 weeks notice, got to work till almost end of June and they are going to pay me for A/L which I have "earned". Pity really as was planning to take A/L for the last 2 weeks of my notice and either have a break or start at new place early but...

Still, very happy bunny here

gettingready

Company registered, just waiting for the paperwork to come through and working off my 6 weeks notice in the current place.. Ufffff - hope all goes well

Pennywise

makeyourdaddyproud wrote: »

IR35 cannot be avoided if it's his main place of work and with his sole income coming from that contract. If he has other streams of income and does not need to be on site in a regimental 9-5 capacity then the contract could be exempt from IR35.

Quite a sweeping and forceful statement which is completely wrong. Saying IR35 "cannot be avoided" just because you only have one contract is about the most misleading comment I've seen on these boards in a while.

Have you looked at the decided court/tribunal cases where it has been decided IR35 doesn't apply even though there was only one contract/work place?

IR35 looks at lots of different issues, such as substitution, mutuality of obligation, risks & reward, etc. It's quite possible/likely to be outside IR35 even if you only have one workplace/contract. There is no single factor - the tribunals/courts always look at all aspects and the whole picture.

gettingready

Ok so.... signed my new contract to start on the 29th July.

My current employer refused to let me take my A/L (9 days "earned") at the end of my notice so have to work there will 25th July (last day of work).

That means I will only have 3 days work in July so financially it got all a bit complicated.

End of July - final salary from my current employer.
End of July invoicing the new for 3 days only - 28 days payment terms so end of August will only have 3 days money worth to last me till end of September as end of August (full month) invoice will be paid end of September of course.

The contract rate is good but still 3 days worth of pay is not going to last me a month.... Hmmmmmm

Any ideas re finance for that month? No savings and no option of CC/Overdraft or a Loan I am afraid....

Ok, I answered my own question I think - bread and water for a month

Contract definitely outside IR35 which of course is a good thing.....

gettingready

Business bank account sorted, accountant happy with the contract being outside IR35 so all in place now - just counting the days till the 29th.

CC-Warrior

Good luck with that, I went from Perm to Contract and never looked back. Sure, there are downsides, but my bank balance has never looked so good.

http://www.itcontractor.com/
http://forums.contractoruk.com/

gettingready

CC-Warior, thanks so much for that.

Bit scared but....

It is a full 6 months , 5 days per week contract so....

CC-Warrior

My current contract started out on a month, 15 months ago, and is looking to go on for easily another 18 months.

colino

Best of luck and I hope it all works well with many new pieces of work to spin out of it. Amazed though of the rush to incorporate everyone who goes freelance. If you are good, other opportunities will come your way and whether you do this at weekends or evenings or change your current arrangements, sobeit. You are an independent contractor and unless the current work, not job, offerer wants to open themselves to be your employer, they will maintain flexibility in your work. No need to have an unnecessary limited company to manage, and for a freelance with limited capital equipment, who carries proper liability insurance, absolutely no benefit in incorporation.

gettingready

This contract is via an agency so ltd was required.