Went to see an accountant today

[P45]

To discuss moving from umbrella to limited company, due to cessation of claiming S&T's via the former.

He informed me I would still not be able to claim travel and subsistence via a limited company (this was not my understanding, changes might be pending, but not yet implemented).

Also he said with the additional costs, company annual registration, accountancy fees, bank fees (after 12/18 month free period), unless I'm earning £40k+ it is probably not worth the hassle, as the benefit would be marginal.

With periods overseas, unemployment, daily rates between £140 ~ £180, I'm earning no where close to £40k pa..

I understand that operating through a limited company I will be better off in the pocket, but didn't realise it would be this marginal for average earnings. Would loathe to ever experience long unemployment periods and have monthly bank fees and annual accountancy fees commitments.

Not being able to claim for food I could live with, but not being able to claim mileage is the killer, if rates don't go up, there will always be those that will take the roles regardless.

Goosed...

[Alan @ BroomeAffinity]

You only can't claim T&S tax relief if you're effectively inside IR35. But, at your rates it might well be marginal even with the relief. What do you reckon your annual revenue would be?

[Fred Bloggs]

Look for a staff job to get your skills and experience up.

[northernladuk]

The general advice was that anything under 30k and it was better off to be umbrella. We've not heard what the figure is now but I suspect it's highly dependant on location.

But forget all that aside. Why are you contracting if you can't get gigs and then that's all you can get? Go perm, get some skills and when you can command more come back.

[P45]

Thanks for the responses, I spent about 4 months overseas this year, my earning are around the £12k mark, usually I'm under £20k gross (enough to buy me an air-ticket). Basically I've paid no tax for years thanks to S&T's, now that gig is over.

Unfortunately wrong side of 50 to realistically land any permanent role, now I focus on the 2nd level roles as frankly my 3rd level skills are in the main redundant.

I'm in Liverpool which is bleak for job opportunities compared to the South, or even Leeds / Midlands. Not being able to claim travel and it is my understanding, accommodation and the like, that you have to wait until the end of the year.

Even my umbrella company has stated, don't submit any expense claims beginning March 21st. Recently I've been contracting in Leeds, offsetting mileage, accommodation, without being able to off-set those, it simply wouldn't be worth it now.

[Milkyway]

@OP: I see your constraints, but I am struggling to understand why your rates are this low?? (i.e. in 100+ per day).
Is the market this bad these days? or are you having to undercut others in your game at these extremely at low rates so as to get some gig to get going in your life?
I thought even graduate roles pays at least 200+/day.

With your experience and being over 50 I take it you have quite a bit of experience, so what is going on?
Is north this bad? Or is everywhere getting this bad these days?

[northernladuk]

He says 2nd line so assume he means desktop support type stuff which will explain the rates.

Not sure why the OP is still contracting reading all that.

[SlipTheJab]

With those figures you'd be better off on the dole, another win for the Tory scumbags...

[P45]

@OP: I see your constraints, but I am struggling to understand why your rates are this low?? (i.e. in 100+ per day).
Is the market this bad these days? or are you having to undercut others in your game at these extremely at low rates so as to get some gig to get going in your life?
I thought even graduate roles pays at least 200+/day.

With your experience and being over 50 I take it you have quite a bit of experience, so what is going on?
Is north this bad? Or is everywhere getting this bad these days?

I realise I messed up for years contracting for Max20 \ Venn to the NHS, who rates are generally low (actually bottom of the barrel).

Even on jobserve 2nd line support roles are of the £100 ~ £160 mark, unless you consider London were they usually start at £200, then you have to factor in accommodation, which now can't be off-set on a weekly basis, nor can you claim travel for getting there.

Not so much of a case of under cutting others, the advertised rate scale is what it is, as well as the market being crap in Liverpool. But with this ending of claiming for S&T it's now got a lot bleaker. As for experience I've worked along side some absolute "piss takers" recently, a decent flexible work ethic counts for nothing. Then it comes to dealing with these bloody pimps, an experience in it self.

[jamesbrown]

On that sort of turnover, it makes literally no sense to start a company, given the costs and hassle involved. Other than trying hard for a permie position, it's difficult to know what to suggest. I'm afraid you'll probably have to suck it up. Even if you were able to claim relief on T&S (in principle, this is possible if you aren't subject to the right of supervision, direction or control over the manner in which you deliver the services - not something you could demonstrate in a support role), you'd no longer get upfront relief and would need to claim this retrospectively via your SATR. I suppose your best bet is to try and minimize any H2W travel if you really can't get a permie position somewhere.