Hi,
I was wondering if anyone "in the know" would be kind enough to give me sound advice. My brother is employed by a European software company. His employment is permanent. He had to sign a contract. The company is outside the UK. His job is to test navigation system softwares by driving all around the UK to find bugs. But, he can't test and drive both at the same time and so he needs a driver. Actually, it was the company themselves who suggested that he hires a driver in the UK. The company won't be searching for a driver themselves because they're outside the UK and so it's a bit hard for them to be searching for a driver in the UK from outside the UK plus my brother is team leader for the UK and so the company has left the job to him to find a suitable driver to his own liking. Now, instead of hiring some stranger, my brother prefers to offer the job to me. The company doesn't want to employ me (or any driver for that matter) as they don't want the liability, responsibility and costs (sick pay, NI etc.) that will be associated with employ a driver. And so, they prefer that I work as a selfemployed driver as that would relieve them from "employer duties". At first, they wanted to pay me via a composite company, where they pay the composite company and the composite company pays me. But, after they learnt the costs associated with composite companies (paying the composite company it's dues etc.) they changed their mind which now means they'd rather just pay me direct as a selfemployed driver and leave-out the composite company out of all this. Now, them paying me direct may save them from a lot of regular costs but I will have the cost of paying an accountant and so my question is, is their choice actually worth it for me ? I mean, Am I losing-out here some-where or am I actually benefiting in some way? I mean, what's the pros and cons (from my point of view and interests) if they pay me via the composite company and also what's the pros and cons (again from my point of view and interests) if they paid me direct without getting the composite company involved in any of this, where I would have to hire my own accountant ? I must know the pros and cons of both options so I can decide which option to take (whether to get paid by the software company via the composite company or get paid by the software company direct thus leaving-out the composite company and hire my own personal accountant) ?
I will get paid 6 quid per hour. So, 6 quid*40 hours = 240 quid a week.
Also, if I get paid 240 quid a week and choose the composite company option then how many types of costs and taxes would I have to pay and how much would I have left per week out of the 240 quid a week after NI and tax etc. payments and after any other costs payments which maybe involved ?
On the other hand, if I get paid 240 quid a week but choose the option to get paid direct, leaving-out the composite company from all of this, and hire my own personal accountant, then how many types of costs and taxes would I have to pay and how much would I have left per week out of the 240 quid a week after NI and tax etc. payments and after any other costs payments which maybe involved ?
What is your advice ? What would you do if you was in my position and why would you choose that option over the other ? Anything else I need to know before jumping in any wagon ?
My brother doesn't know what to do (which option to choose for me) as he is young and recently just graduated from university.
I was wondering if anyone "in the know" would be kind enough to give me sound advice. My brother is employed by a European software company. His employment is permanent. He had to sign a contract. The company is outside the UK. His job is to test navigation system softwares by driving all around the UK to find bugs. But, he can't test and drive both at the same time and so he needs a driver. Actually, it was the company themselves who suggested that he hires a driver in the UK. The company won't be searching for a driver themselves because they're outside the UK and so it's a bit hard for them to be searching for a driver in the UK from outside the UK plus my brother is team leader for the UK and so the company has left the job to him to find a suitable driver to his own liking. Now, instead of hiring some stranger, my brother prefers to offer the job to me. The company doesn't want to employ me (or any driver for that matter) as they don't want the liability, responsibility and costs (sick pay, NI etc.) that will be associated with employ a driver. And so, they prefer that I work as a selfemployed driver as that would relieve them from "employer duties". At first, they wanted to pay me via a composite company, where they pay the composite company and the composite company pays me. But, after they learnt the costs associated with composite companies (paying the composite company it's dues etc.) they changed their mind which now means they'd rather just pay me direct as a selfemployed driver and leave-out the composite company out of all this. Now, them paying me direct may save them from a lot of regular costs but I will have the cost of paying an accountant and so my question is, is their choice actually worth it for me ? I mean, Am I losing-out here some-where or am I actually benefiting in some way? I mean, what's the pros and cons (from my point of view and interests) if they pay me via the composite company and also what's the pros and cons (again from my point of view and interests) if they paid me direct without getting the composite company involved in any of this, where I would have to hire my own accountant ? I must know the pros and cons of both options so I can decide which option to take (whether to get paid by the software company via the composite company or get paid by the software company direct thus leaving-out the composite company and hire my own personal accountant) ?
I will get paid 6 quid per hour. So, 6 quid*40 hours = 240 quid a week.
Also, if I get paid 240 quid a week and choose the composite company option then how many types of costs and taxes would I have to pay and how much would I have left per week out of the 240 quid a week after NI and tax etc. payments and after any other costs payments which maybe involved ?
On the other hand, if I get paid 240 quid a week but choose the option to get paid direct, leaving-out the composite company from all of this, and hire my own personal accountant, then how many types of costs and taxes would I have to pay and how much would I have left per week out of the 240 quid a week after NI and tax etc. payments and after any other costs payments which maybe involved ?
What is your advice ? What would you do if you was in my position and why would you choose that option over the other ? Anything else I need to know before jumping in any wagon ?
My brother doesn't know what to do (which option to choose for me) as he is young and recently just graduated from university.
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