Applied for a junior software job. Got an offer, but without any of the benefits listed in the job

loko2468

Because I've been offered work as a contractor for 4 months, rather than a fulltime/permanent employee. I will have a chance to become the latter (and get the benefits) at the end of the contract if my performance is good enough, they say. As a contractor I'd have my pay reduced if I took any sick days/holidays, and I'd have to handle taxes myself via self assessment.

This strikes me as dishonest, false advertising. Is this normal? I'm guessing they don't have confidence in me for whatever reason. Just seems odd that, as I see it, they are using a short contract as a sort of probation period.

RudolphHucker

Have you worked as a freelance contractor before?

The government are cracking down on so-called "Contractors" who are actually disguised employees under IR35 Regs.

Real contractors have tax advantages which allows them to take home more net pay than an employee being paid the same rate, at the same time a company saves money by not having to pay Employers NI/pension/holiday/sickness pay for the contractor.

https://www.gov.uk/guidance/april-2020-changes-to-off-payroll-working-for-intermediaries

https://www.itpro.co.uk/ir35

https://www.contractorcalculator.co.uk/contractor_news_latest.aspx

Marcon

loko2468 said:

Because I've been offered work as a contractor for 4 months, rather than a fulltime/permanent employee. I will have a chance to become the latter (and get the benefits) at the end of the contract if my performance is good enough, they say. As a contractor I'd have my pay reduced if I took any sick days/holidays, and I'd have to handle taxes myself via self assessment.

This strikes me as dishonest, false advertising. Is this normal? I'm guessing they don't have confidence in me for whatever reason. Just seems odd that, as I see it, they are using a short contract as a sort of probation period.

There is little chance HMRC will view this as self employment, unless you are already an established practitioner with other clients. From the sound of it, that's not the case? It's likely to be under IR 35 (as pointed out above). 

What did you actually apply for - a full time permanent job? If so, do you really want to settle for this - and possibly land yourself with an employer who isn't exactly going to fall over themselves to look after its employees. Given how few employment rights a new employee has (some, and valuable ones, but it's easy enough to get rid of you if your performance isn't up to standard or they simply don't like you), it's hard to see why they are taking this approach.

BrassicWoman

temp to perm is really common in roles with high turnover - chek they'll stick around before doing the sign on paperwork/ giving benefits. 

loko2468

Marcon said:

There is little chance HMRC will view this as self employment, unless you are already an established practitioner with other clients. From the sound of it, that's not the case? It's likely to be under IR 35 (as pointed out above). 

What did you actually apply for - a full time permanent job?

Hey. I've done self employed work before in other industries, but as far as I know I've never been a formal 'contractor', but I am unsure. If it is under IR35, does that mean my employer (client I suppose) would be in trouble, I would be in trouble, or both? The salary is only really an entry level/junior salary, if that means anything. And I don't have my own company setup or anything, nor do I intend to.

On the job description it mentioned full-time, part-time, and permanent, so I guess I can't strictly claim I applied for a full time permanent gig.

Sandtree

loko2468 said:

Marcon said:

There is little chance HMRC will view this as self employment, unless you are already an established practitioner with other clients. From the sound of it, that's not the case? It's likely to be under IR 35 (as pointed out above). 

What did you actually apply for - a full time permanent job?

Hey. I've done self employed work before in other industries, but as far as I know I've never been a formal 'contractor', but I am unsure. If it is under IR35, does that mean my employer (client I suppose) would be in trouble, I would be in trouble, or both? The salary is only really an entry level/junior salary, if that means anything. And I don't have my own company setup or anything, nor do I intend to.

On the job description it mentioned full-time, part-time, and permanent, so I guess I can't strictly claim I applied for a full time permanent gig.

Assuming the client of a reasonable size then the liability for IR35 is with the client. IR35 however is not hard legislation to deal with, they will simply state you have to work through a compliant umbrella company or as PAYE of the agency and that you cannot operate via your own limited company.

prowla

As a contractor you are working as a external supplier providing a service rather than as an employee of the company and you invoice for the agreed rate on a (typically) monthly basis.

You are not an employee of the client and you don't have any employee rights, benefits, holiday pay, sick pay, training, pension, etc.

The contract will typically state a rate, a duration, any allowable expenses (typically none if you are on-site), and termination/notice conditions.

You may also be required to provide your own equipment (eg. a laptop and a mobile phone), dependent upon the client's requirements.

RudolphHucker

prowla said:

As a contractor you are working as a external supplier providing a service rather than as an employee of the company and you invoice for the agreed rate on a (typically) monthly basis.

You are not an employee of the client and you don't have any employee rights, benefits, holiday pay, sick pay, training, pension, etc.

The contract will typically state a rate, a duration, any allowable expenses (typically none if you are on-site), and termination/notice conditions.

You may also be required to provide your own equipment (eg. a laptop and a mobile phone), dependent upon the client's requirements.

As well a Public Liability Insurance & possibly Professional Indemnity insurance.