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First time contractor - Decisions to make

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    #11
    Originally posted by LondonManc View Post
    You are now a microconsultancy; YouLtd absorb the costs that BigFourCo probably get to pass on to ClientCo. If you're feeling brave, you could ask about expenses if your contract is inside IR35.

    Get used to living to take as much home as you can; I've contracted in London and stayed in student accommodation in the summer because it's "good enough". Get out of the habit of £100+ per night hotels and £30 meals. While they *can* be expensed, be mindful that it's still your bottom line that they're chewing away at.

    Don't bother renting a room or flat - you're tied in for at least six months but your contract can be pulled at any moment without notice (despite what you may think). You'll still be liable for the rent.
    Booking.com and Trivago come in useful. Trains - get used to travelling standard class off-peak. It can work out cheaper travelling late Sunday and staying over than travelling Monday morning.

    Consider driving occasionally to bump your mileage claim up; it's the most tax efficient way to travel on business but the most tiring, so there's a balance to be had.
    Claim mileage from who?


    Sent from my iPhone using Contractor UK Forum

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      #12
      Originally posted by GhostofTarbera View Post
      Claim mileage from who?


      Sent from my iPhone using Contractor UK Forum
      From yourself
      I'm not fat, I'm just fluffy.

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        #13
        Thanks for all the replies.

        If they come back and agree the contract is outside IR35 would it still be deemed a bad time to leave my perm role?

        I was thinking of asking about expenses, is this frowned on after the interview stage has been passed?

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          #14
          How long is the contract for? 3 months / 6 months? Have you worked out plan B for what if scenarios?

          1. What if the project is closed or you were sent out within a week of starting?
          2. What if contract renewals were not offered after 3 months?
          3. What if you couldn't find a contract for the next 6-12 months?

          Like other's have pointed out, it's not the right time to enter into contracting without a plan for "what if" scenarios.

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            #15
            Originally posted by Femster View Post
            Thanks for all the replies.

            If they come back and agree the contract is outside IR35 would it still be deemed a bad time to leave my perm role?

            I was thinking of asking about expenses, is this frowned on after the interview stage has been passed?
            My guess is yes.

            I've only ever seen expenses included when the contract is very niche and they were really struggling to find someone. Wasn't me either, another contractor on site.

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              #16
              Originally posted by Femster View Post
              Thanks for all the replies.

              If they come back and agree the contract is outside IR35 would it still be deemed a bad time to leave my perm role?

              I was thinking of asking about expenses, is this frowned on after the interview stage has been passed?
              Yes. If it is deemed outside it will be in the minority. Its likely any other contracts you take up in the next few years will be inside and again, being a newbie you will be up against many tens of thousands of very experienced contractors.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

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                #17
                Plus don’t hand in your notice until you have passed all vetting and credit checks

                I would chance my arm and ask for expenses if I was you


                Sent from my iPhone using Contractor UK Forum

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                  #18
                  Originally posted by Femster View Post
                  Hi,

                  I am new to this forum and contracting as I have never done it before. I have always been a permanent employee but always worked with Consultancies so I figured why not branch out.

                  The perfect role popped up out of the blue and I went for the interview and have received an offer. I cannot ask anyone obviously to make a decision for me but here are a few questions I cannot answer.

                  1. Expenses for the role would be very high as I would have to stay away from home and pay for it, with my consultancies I just claim it back every other week so never out of pocket. How do I pay for such high expenses as it would probably wipe out anything I make weekly.

                  2. If it is inside IR35, and I go with Umbrella will I them pay expenses out of my own pocket and have to take it off my take home calculations.

                  3. If inside IR35 and I take home is calculated at £4000 per month after the various taxes, is there anything else I need to take off?

                  Sorry for the long question, I am genuinely in so many minds as to what to do.
                  Is it Inside IR35 or not? BIG question.

                  Not having a dig but things like whether the rate is worth doing based on location/costs is the first thing to consider before even applying for a role.

                  Also, £4K take home is pretty poor to be honest - even for an inside role. Even worse if theres accomodation costs involved. Wouldnt go near it.
                  Rhyddid i lofnod psychocandy!!!!

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                    #19
                    Originally posted by GhostofTarbera View Post
                    Get it written into your contract that end client will pay your traveling and accommodation expenses - job done

                    If they say no (most likely) then raise your rate by expenses amount + tax (as you will be paying out of net income)

                    If you have 2/3/4 year old kids prepare to lose family allowance and 30 free hours of childcare also

                    Welcome to contracting


                    Sent from my iPhone using Contractor UK Forum
                    <sigh> yes one disadvantage of going from limited to inside IR35 umbrella. The buggers want the child benefit back....
                    Rhyddid i lofnod psychocandy!!!!

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                      #20
                      Originally posted by Femster View Post
                      Thanks for all the replies.

                      If they come back and agree the contract is outside IR35 would it still be deemed a bad time to leave my perm role?

                      I was thinking of asking about expenses, is this frowned on after the interview stage has been passed?
                      Doesn't sound like the rate is that good to be honest.....

                      Nah no-one will get a contractor in and pay expenses for them to travel from home. Never happening unless they're REALLY desperate. Why would they? Not their problem where you live to be honest.....

                      Only time client cares where you live is that some get twitchy if you live miles away because they get scared you're gonna bail out first chance for a gig closer to home.

                      Not being funny - £50 a night in a travelodge for 4 nights a week, plus driving there mon, home fri is a fair chunk of that £4K gone. Is it really worth ditching you're permie job for that?
                      Rhyddid i lofnod psychocandy!!!!

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