Moving from permanent, PAYE job into contracting - best way

gettingready

Well, finally - first day tomorrow. Or today rather as it is already 29th today.

Fingers crossed all is going to be fine.

Was trying to figure the quickest way to/from work and it is still close to 1.5 hour each way and £137.00 pr month on travel but hey....happy as a bunny

gettingready

2 days in and I am in total heaven - at every level.

:D:D:D:D:D:D:D:D:D:D:D:D:D:D:D:D:D:D:D:D:D:D:D:D:D

Even managed to sort out much faster payments so do not need to worry about that.


Wohoooooooooooooooooooooooo

Thanks for all the kind advice, was a bit scared to make the jump but hey - so worth it....

gettingready

2 weeks gone and could not be happier

makeyourdaddyproud

That's good news. But I repeat this again for the mentally incapable.

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.

There are few options around IR35. It's not an over simplification and accountants could suggest ways to remain outside this decree.

The bottom line is if you are fulfilling a role that equally applies to a regular employee (ie regimented hours, holiday, hours of work, single site), you are treated as a paid employee for the purposes of IR35.

No excuses.

gettingready

Makeyourdaddyproud - thanks

My contract is outside IR35 - and my current place is my only place of work and I work regular hours (09:30 - 5:30 with one hour lunch in the middle).

makeyourdaddyproud

I would be careful with anything you have in your contract. These have been successfully challenged by the IR, with the end result a bill for retrospective tax.

I used a umbrella company through a large accountancy practice and they administer the full earnings through paye but with scope to claw back some travel and tax relief on computer merchandise.

This gave me a good compromise on my take home pay whilst not ever having IR35's Sword of Damocles hanging over me for the next 7 years.

But it seems you got a good arrangement. Presumably, you have Indemnity Insurance (which shows intention as an independent business) and can work from home?

gettingready

Makeyourdadyproud - thanks again. No, I do not have Indemnity Insurance (yet) so thanks for mentioning it.

I will let SJD look after me/my ltd but only from 1st September as need the money to come in first to pay the fees... It is my first contract so learning as I go.

BUT - spoke to other contractors in my place doing what I do (for a while now) and they are an interesting mixture of ltd/umbrella/self etc.

Thanks again