First contracting position - Taking holidays and Ir35 status

[relax24]

I should probably preface this by sayin I tried the whole "<keyword> site:forums.contractoruk.com" search function, but nothing similar to what I want to know has come up.

After 10 years of being a permy since I graduated, I've finally taken up a contracting position within the apps team of an asset management firm. I've been given a 12 month contract (not that that means anything), and been told it's outside IR35. I'm not sure how it falls outside IR35 but the agency said that IR35 in the private sector hasn't been fully set up yet. Again, that could be wrong for all I know, so as it's my first time, I've decided to go with Qdos' Assured Plus plan to let them set up my ltd company and handle everything, including an IR35 contract review when I get the contract. Thing is, I need to sign it pretty rapidly or I won't make the start date, and I want to leave my current role ASAP. Am I able to sign it and then ask them to retrospectively make changes to it should the IR35 review require changes to it?

Secondly, I love travelling and taking leave. As a permy, I normally take a week-7days every couple of months or so. I'm not fussed about not getting paid for the days I don't work. It still dwarves my permy salary, and this contract is likely to run over 12 months. What's the deal with taking leave as a contractor in an outside ir35 position. It is an alien concept to me to just say "I'll be unavailble during these dates" as I'm used to asking, but is that the route I should go down? Can they say no? I wouldn't take the piss with it, and I normally go outside of the usual holiday periods so it doesn't coincide with other people being off. Also, how do they track it because I assume I do not use the holiday booking system like a regular employee would?

Thanks in advance, and sorry for the essay!

[northernladuk]

No you don't sign it unless it's right. You won't have a cat in hells chance of changing it afterwards. QDOS can turn it around in 24 hours at a cost. You also hold position power. The client wants you and the agent wants you. They will grumble but they will wait a couple of days. Just tell them you are having a contract review and get back to them in a day or so. It's better they wait than try go to the second choice who will just add delays anyway.

Re time off. You just do as you say.
Advise them when you won't be available and does that suit them. Of course they can say no. They can get rid of you on the spot if it's really that unacceptable. Every client is different and it depends what you do so you'll just have to flex depending on the client.

That said if you work your time off so it isn't in the middle of a big go live or important date it shouldn't be a problem. If you are going to miss key dates and affect delivery then it will be.

They dont track absence for contractors generally but if you work on projects they may have a planner with everyone's leave on for resource management. They will have your time sheets and evidence from agent about billing if they do need to check back.

[relax24]

Thanks so much for the quick reply! I am a complete and utter muppet when it comes to anything tax/finance related, now i'm stressing about "what if the accountant does stuff incorrectly or doesn't submit returns"

I already miss the permy life. I suppose that'll change once I get paid.

[northernladuk]

Thanks so much for the quick reply! I am a complete and utter muppet when it comes to anything tax/finance related, now i'm stressing about "what if the accountant does stuff incorrectly or doesn't submit returns"

I already miss the permy life. I suppose that'll change once I get paid.

Time to step up then. You sign off your accounts so you are ultimately legally responsible. Up to you to understand and check your company's finance.

Plenty of resource out there to help. It's not rocket science so don't fret too much but it does require some time and effort to learn. It's part of owning a business and being a contractor I am afraid. If it's too much for you then you need to go Umbrella until you are ready.

[LondonManc]

Let's split the two sides of things into IR35 and holidays/leave

IR35 - it applies to all contingent workers in terms of them being inside or outside and is based on the contract and working practices - use the links on the right of this forum to read up on it.

Leave when in contract - clients understand that you're still a human being and are happy not to have to pay money out when you're not in. However, they have contracted you to deliver a piece of work within a given timescale; if your unavailability jeopardises that, you may be walked for failing to deliver. To be any more precise than that would be guesswork as this can vary considerably on a client by client basis.

[northernladuk]

I already miss the permy life. I suppose that'll change once I get paid.

Wait until you get binned on the spot with no other income coming in. You'll miss it then.

[relax24]

Wait until you get binned on the spot with no other income coming in. You'll miss it then.

Screw it. Whatever happens happens. I'll deal with that if/when it comes.

[malvolio]

Screw it. Whatever happens happens. I'll deal with that if/when it comes.

Bad idea. You should plan for it as best you can, 'cos it will happen.


Also get a copy of the Guide to Freelancing from www.ipse.co.uk as well as studying the material on this site. You have no idea how much you don't know.

[Glencky]

You've already got some good advice. Most importantly on IR35, you have been misinformed and you NEED to use the resources on this site and elsewhere online to read up on it. It is really important that you grasp the fundamental point that you are now (or will be soon) a company director, and that this is fundamentally different to being an employee. You have many legal obligations and it doesn't matter what accountant you use, the legal buck stops with you. QDOS is clearly a great start but the important thing about IR35 is it depends not only on the contract but *on the working practices*. IR35 has applied since (2001 or whenever it was). The agent's reference to it only applying to public sector isn't about IR35 itself but about some more recent reform which changed the original IR35 regulatlons. They still very much apply and it is important your contract complies, but that's the relatively easy bit as with QDOS on your side you can negotiate any required changes probably fairly easily. But you need to be very conscious of the working practices and the implications of whether any given contract falls within or outside IR35 because the two are very different. It won't take you more than a few hours to learn the basis on this.


Next point - do NOT sign the contract until you're happy with it, or if you do then know there is literally no chance of you getting it changed once you're in the gig (on renewal, maybe but not just cos you've decided you don't like it).


Finally, the others aren't joking. The headline rate for contractors is higher for a reason. Much of that relates to the tax position (if you operate outside IR35 for a given contract your take home can be much higher; inside is a very big difference) but the rest is down to the uncertainty and lack of any rights. You NEED a 'warchest' built up as soon as possible to give you safety.


You seem like you're approaching things with the right starting attitude so I'm sure you'll be fine but take all this advice because it really is the core basics of contracting.


(and on the holiday - just be as reasonable as possible. They don't have the right to tell you no but they are likely to have the right to let you go for a flimsy pretext with no notice, regardless of the general notice period in your contract. So managing the stakeholders right to find mutually convenient holiday is the right way to go! it helps that they know they won't be paying you for it.)

[northernladuk]

You seem like you're approaching things with the right starting attitude

Screw it. Whatever happens happens. I'll deal with that if/when it comes.

You think?