FTC / Permanent / Contract

dranzer01

Ive just been offered a 12 month FTC - (i purposely didnt say anything in the interview when the guy said about 'ill be on their payroll)

I emailed my recruiter and i said to them 'as i have my own ltd company, can i not bill the company daily or hourly, instead of me being on their paye?'

They just came back to me saying 'they wouldnt do that, they would only do me as PAYE on their payroll'...


Can someone tell me why this is? I even said im willing to sacrifice the benefits they offered, so that I can be a contractor billing the company.... (seems like that didnt make a difference......)


Anyone who has been in this situation, or has asked this question, id be more than happy to know!!!



Thanks,

Guest101

Most likely because you will fall into the scope of an employee and they would be liable.


Why do you want to be a contractor?


(saying your a contractor doesn't make you one)

dranzer01

i get more money, near enough double

- whether you guys says yeah but tax this or tax that is irrelevant. My set up has been working perfectly for myself -

ok this 'contractor' word seems to be rubbing people up the wrong way on this forum... if not the word contractor... what are people supposed to use when clearly applying for jobs it says 3 months contract/6 months contract?

Guest101

..... Then its fairly clear:


1: they don't want to pay you double....
2: They don't want a contractor, who can set their own hours, but need someone to be employed on a FTC.
3: just because you say you're a contractor doesn't make you one and they don't want a claim down the line where they needed to pay NI / Tax, offer pension and A/L etc.


A fixed term employee, is what they are after.


- Contractors don't 'rub people up the wrong way - it's just that saying you are a contractor, doesn't make you one.

dranzer01

but surely all the perks they are offering is MORE than what i make a month... in mean lol?

season ticket loan eligible when you start on the very first day.... i mean...?! that in itself is gonna be around 13,000 a year for me?

private healthcare
medical care
subsidised gym
eye test
cycle to work scheme

i mean come on... all of this cannot be less than me making £3,600 a month (if they were to accept me on a 12 month contract -)

Guest101

dranzer01 wrote: »

but surely all the perks they are offering is MORE than what i make a month... in mean lol?

season ticket loan eligible when you start on the very first day.... i mean...?! that in itself is gonna be around 13,000 a year for me?

private healthcare
medical care
subsidised gym
eye test
cycle to work scheme

i mean come on... all of this cannot be less than me making £3,600 a month (if they were to accept me on a 12 month contract -)

You charge £180 a day? That's fairly cheap.


All the perks are bought with 'buying power' and will be heavily subsidised. Or national schemes, it wont cost them that much. (except for the season ticket loan thing, which obviously you'll be paying back)


Private medical cover is often not worth very much, as private providers cherry pick what they do, otherwise you are referred back to the NHS anyway.


Cycle to work is a common one and saves on cost of running a car park.


Eye tests can fall under health and safety at work anyway.


Subsidised gym is probably just a perk of the buying power they have. (X number of employees in the area, gym gets priority advertisement)


AND as I have said, it prevents you coming back in 12 months claiming you were an employee all along (which it sounds like you would be)

Undervalued

dranzer01 wrote: »

Ive just been offered a 12 month FTC - (i purposely didnt say anything in the interview when the guy said about 'ill be on their payroll)

I emailed my recruiter and i said to them 'as i have my own ltd company, can i not bill the company daily or hourly, instead of me being on their paye?'

They just came back to me saying 'they wouldnt do that, they would only do me as PAYE on their payroll'...


Can someone tell me why this is? I even said im willing to sacrifice the benefits they offered, so that I can be a contractor billing the company.... (seems like that didnt make a difference......)


Anyone who has been in this situation, or has asked this question, id be more than happy to know!!!



Thanks,

Because if the company gets your employment status wrong (in the eyes of HMRC) they could be responsible for the tax and NI they should have deducted from your salary had you been a PAYE employee.

So, some companies are extra super cautious even in situations where it would be perfectly OK.

Google the BBC and "freelance" presenter and so called talent for example.

getmore4less

possible reasons they don't want you contracting.

As an employee they get to decide
when you work,
where you work,
when you take holiday,
they can decide if they pay you overtime or have you work late and weekends.
they have little control over other jobs you take on that result in non performing(overtired)

as a contractor you decide all of those.

getmore4less

dranzer01 wrote: »

season ticket loan eligible when you start on the very first day.... i mean...?! that in itself is gonna be around 13,000 a year for me?

it's a loan worth a few % even at 10% repaid over a year that's £60pm

sangie595

We've been here before and not too long ago. Can someone tell you why it is? Because they advertised a job on a fixed term contract, and that's what they say it is. I am sure they have good reasons, but it is irrelevant. You knew what you were applying for. You said so. It was dishonest of you to apply for a job and then want to change the terms too the ones that suit you. You don't just decide to tell employers that you want something different. It isn't up to you. Considering the last discussion we had about you contracting, I think you really need to understand what contracting is. And given you don't really have any unique or in demand skills to offer, you aren't likely to find many employers who have contracting work available for you. You do not simply decide you are a contractor. There are conditions that must be met. And if you are working the times the employer says, unable to contract work to someone else, etc., you are not a contractor no matter how many times you say you are. This employer obviously knows that. Most do now. And those that don't, you might want to watch out for. Not in a good way either.

asajj

dranzer01 wrote: »

i get more money, near enough double

- whether you guys says yeah but tax this or tax that is irrelevant. My set up has been working perfectly for myself -

ok this 'contractor' word seems to be rubbing people up the wrong way on this forum... if not the word contractor... what are people supposed to use when clearly applying for jobs it says 3 months contract/6 months contract?

Well, you said the reason here yourself. It will be more costly for them. I believe, it also impacts the notice period.

If you want to do jobs on a daily rate, tell your recruiter to find roles accordingly. As far as I'm aware, those benefits (i.e. ticket loan) saves you tax, not cost them extra. Some, you repay. Also, they pay you less as you mentioned yourself, so it would probably even out. Another aspect, which is already mentioned, is that buying power. They already have their suppliers for these. Adding one more person is unlikely to cost them the same as it would cost to you if you were to buy them independently. Your math isn't accurate and it shows that you don't have much understanding how certain things work.

You will be also eligible for holidays/sick leave etc. When contracting, you won't be paid for the days you don't work.

If an employer has a condition they set, that's what they are after. It might not make business sense to you but it is not your place to argue it. If you still want to do day rate, apply roles where they mention day rate not an annual salary.