New Contractor needing info fast!

[Mojo]

Ok I have done the hard bit and got the job but I now need to understand about umbrella companies and the pros and cons of IR35 and being a one man band i.e. limited company.
This looks like a really useful site that was recommended so can anyone help out there??
Also - I don't want to get stitched up by the agency on the hourly rate so any good tips on what "Market rate" means and how to get the best deal?

[marty_boy]

Go here

Ok I have done the hard bit and got the job but I now need to understand about umbrella companies and the pros and cons of IR35 and being a one man band i.e. limited company.
This looks like a really useful site that was recommended so can anyone help out there??
Also - I don't want to get stitched up by the agency on the hourly rate so any good tips on what "Market rate" means and how to get the best deal?

Hi

good starting point is to

read the PCG's guide to freelancing -

http://www.pcg.org.uk/resources/Gene...sGuidance.html

Are you happy with the rate that you have accepted?

Having just moved from a permie job to contracting myself its a learning curve but do your homework by reading the contractors guide.

[Xerxes]

And there's a guide to contracting somewhere on here.

Here it is... http://www.contractoruk.com/first_timers/index.html

[zathras]

Ok I have done the hard bit and got the job but I now need to understand about umbrella companies and the pros and cons of IR35 and being a one man band i.e. limited company.
This looks like a really useful site that was recommended so can anyone help out there??
Also - I don't want to get stitched up by the agency on the hourly rate so any good tips on what "Market rate" means and how to get the best deal?

1. Brolly's

Don't take it the claim that being with a brolly will get you out of IR35. The only thing that will is good contract terms and that needs to be for all contracts in the chain (simply YourCo -> Agent -> End Client). In most instances brolly will have no problem with IR35. That is because the only way of dealing with them is as an employee. By definition it does not apply if you are an employee.

2. Dispensations

If a brolly claims they have a special dispensation then avoid like the plague. They may have a dispensation - you don't! Any dispensation they they have will equally be available to a limited company that you are the sole shareholder.

3. Expenses Claims.

The only valid expense is one wholly and exclusively business related. You cannot claim £75 and the expense was £45.

A Brolly may be a good idea if you do not want the hassle of running your own limited company, but it may not be the most cost effective.

4. Insurance

No not Employers Liability and Public liability (but you may need these). I'm talking Professional Expertise Insurance. This is things like Shout99's FO25 and the insurance available from being in the PCG. These pay if you need to utilise a professional in dealing with the IR. The success rate (defined as being found outside IR35) of contractors professionally advised is over 99% (1163 v 3). It is well worth the investment. When buying insurance be very careful when advised which one to get and be very clear what it pays out for. I have heard of insurances which are offered by an accountant, but only pay out for the fees of the accountant. An accountant may not understand the status law which is at the heart of a determination under IR35. A professional Status advisor however will (eg Bauer & Cotterell, QDOS, Accountax.

5. Join the PCG

OK So I'm biased having been a member since it was founded but frankly thetr are plenty of people who can help and with membership there are a number of benefits, including the insurances mentioned above, discounts on credit checking, PI Insurance, Banking deals and a whole lot of other things.

[Bovvered]

We need a sticky so these threads stay at the top so we don't have to keep abusing noobs.

[Churchill]

Ok I have done the hard bit and got the job but I now need to understand about umbrella companies and the pros and cons of IR35 and being a one man band i.e. limited company.
This looks like a really useful site that was recommended so can anyone help out there??
Also - I don't want to get stitched up by the agency on the hourly rate so any good tips on what "Market rate" means and how to get the best deal?

FFS, not again!
Look, you've found the forum, now try looking at some of the previous posts!

[Mustang]

Always interesting that people dive into contracting without knowing the first thing about it. Do many people buy an F1 car and haven't even passed their driving test.....?!

[Xenophon]

Use 'Search' first or be prepared to have your pants pulled down, bent over, oiled up and penetrated. Metaphorically speaking of course.

[DimPrawn]

Moderators can we please have all references to IT contracting removed please?

It offends permies who may read this board.

[Mojo]

Thanks to all those that that have tried to be helpful I appreciate it.
For those that think they are funny...