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Day Rate Contracting - Advice or Tips?

By Shellbot ·
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Well, I've taken the plunge.

Normally I take "Fixed Term Contract" positions, which means I'm on the company payroll and get all my entitled holidays, benifits etc... but I've taken the next step and have accepted a position where I am paid daily, and am not on the company payroll.

Its been a plan of mine all along, I just needed to gain the relavent experience to command a half decent rate. So when the opprotunity came along, I thought might as well go for it.

I've accepted a 12 month contract at daily rates. So, at least for my first venture into this brave new world, I won't be out looking for the next gig in a couple months. I've a bit of security there.

I hope I've done everything right :)
I've engaged a firm which has provided me with a Ltd Company, of which I am the propritary Director. For a monthly fee they process my invoices, taxes, insurances, etc. They will prepare my Tax return at the end of the year and do all my day to day accounting and paperwork. The fee is reasonable I think, and its percentage based, so if i make less in a particular month, I pay less for the service (and if you've no work to invoice for they do not charge the fee that month). There are no entry/exit costs either so if I decide I no longer need thier services I can walk away from them.

I am aware if I did all this work myself I would save money, but I would like to do it this way for the first few months untill I see whats what, and what paperwork has to be done etc.

So basically, do you , or have you ever done this type of work?
Any good tips for me?
Any do's / don't?

What haven't I thought of? :)

Thanks in advance!

Shell ]:)

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Sounds about right

by jdclyde In reply to Day Rate Contracting - Ad ...

While I have never been in that postion, good luck with it. This was half good luck and half BUMP! B-)


Still bored?

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Thanks..

by Shellbot In reply to Sounds about right

for the good luck and the bump :)

bored is not the word...
for gods sake i have packing to do man and i'm sittin here..if i had some work to do fair enough, i woulnd't be whining..but there's nothing..

maybe my own fault for documenting the stuff i did as i did it..and when i had some down time last week i cleaned up my pc and email...
so..not much more i can do...

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Could be different rules, but.....

by gadgetgirl In reply to Day Rate Contracting - Ad ...

make sure that on the tax side of things you're paying the correct rate - I'm assuming they're classing you as self employed?

Oh, and if you're a limited company with only one person on board, there are differing rules to "ordinary" company rules in the UK.

And don't forget - no matter how little you may be, you're still liable to pay corporation tax if you make any profit for the company..... (i.e. take out whatevers left as wages and stash it, don't let the government get it!)

There IS lots and lots of paperwork, you're right, and at least let them do it till you can a) understand it more, as it's a bleepin minefield and b) decide whether you should do it yourself and pay an accountant.

Paying an accountant is no bad thing..... it can actually save you money in the long term. They know exactly and precisely what can be put down as expenses and running costs from day 1.

Good luck, Shell - not that you'll need it of course, dear........ :)

GG

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As self employed

by jdclyde In reply to Could be different rules, ...

can even travel expenses to and fro be counted?

If she does work from home, can part of internet conection be charged off? Maybe even getting a nice new lappy as a business expense to lower the profits?

If she SAYS she drives instead of taking bus, car expense?

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Thanks :)

by Shellbot In reply to Could be different rules, ...

Not classed as self employed as such, there's a special tax class for company directors, because of it I actually pay slightly lower rates..

well, i hope the guys i've hired do right by me, i'll be watchin em like a hawk and making sure they take care of everything!

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There are some things that you need to checkout yourself

by HAL 9000 Moderator In reply to Thanks :)

Things like the Tax Position you are in and who is responsible if you can not work for any length of time.
Also if the Contract is actually legal as many companies will word up something to suit themselves that doesn't comply with the Local Laws.

God I would need about 2 weeks to cover everything but I've think I've posted the more obvious ones that need immediate attention.

Col

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Only just seen this Shelly

by HAL 9000 Moderator In reply to Day Rate Contracting - Ad ...

But a few thoughts you'll need some form of Insurance in case you break anything at the new position. After all you don't want to be finding the money out of your own pocket do you?

You'll also need some form of Employment Insurance so if you are injured somewhere and can not work you still have a income coming in. I just had a mate who is a Self Employed Electrician get hit by a car and break his leg. He's still to get out of the meat works 3 weeks after the woman ran him down.

You'll also need some kind of backup depending on your contract as if you are unable to work you'll need to put someone else in there to do your work till you can return. Maybe.

As I say it all depends on the contract and what is covered and what isn't. It could be more difficult that you at first realize.

Also a Business Plan wouldn't ever go astray. Draw one up and stick to it like glue so you can actually afford to live.

As for the Legalities that all depends on the location and the contract so have you had a Legal Eagle look it over? You need to have your responsibilities properly explained to you and not just go with what the company has suggested is a good thing. They always word it to suit themselves and you don't want any Penalty Clauses jumping up unexpectedly and biting you.

Best of Luck

Col

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Great doing Shell :)

by rob mekel In reply to Day Rate Contracting - Ad ...

Nice going Shell. And immediatly a contract for the next 12 month, wow.

I won't stumble you with all kinda rules and stuff ... special as rules like that differ from country to country. For instance in the NL. you must give yourself, as director of a Ltd (BV in the NL) a minimum fee of 80,000.= ? that's an 120,000.= US$ nowadays. Or, if you're selfemployed, have at least 3 different firms to contract you a year.

I think it's wise to hire a company to level with all the rules, invoices, ect.

Wish you a lot of succes on the job :)
Rob

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