This is my 1st post but have been a long time reader of this forum.
I’m currently contracting in the public sector IT (2th Gig + with a few extensions on each ) did contracting for time back in late 90’s (millennium bug paid for my 1st Mercedes at 21 them where the days )
Now all this Umbrella T&C expenses changes
Why do I use a Umbrella Er To Stay Clean and Dry
My rate is just about on the bracket that would be recommended to go limited as such did the maths and there was not much of benefit as my ir35 status is risky. So went with a CUK recommended Umbrella company. (When I say CUK recommended it was awarded CUK Best Umbrella Company of the year at the time )
So far it good been working under a Umbrella claiming legitimate T&C expenses has seen take home rate of around 70% tax affairs are all in order with no need for self assessment forms.
Clients have been good even the “much loved” agents have given me not many problems bar a few late payments on bank holidays.
Overall I feel that contracting as made be a better worker the risk of it all wanting that extension or to be in the running to be on next BIG project all makes you work harder you deliver where “some” public sector permanent workers do not. With the new T&C expenses changes all that is to end. Some may end up taking home less than the permanent workers gets without all the benefits.
I can understand the governments need to address contracting rules can’t say I do not feel for the self employed shelf stackers as I call them you know the dot com companies I am on about that make it’s “staff” use Umbrellas to claim expenses just to get a minimum wage. Government can’t even make them pay tax let alone pay it’s staff in descent way.
HMRC has not factored in how much it relies on IT contractors in the public sector I’m sure that many on this site have been at least been offered a gig in various government services in their time.
Rates may not be the best but are not too bad it’s better then bench time I’m my view.
SO what next
GO limited and all that goes with it IR35, VAT ,Accounts and Self assessment for 30k a year ?
Stay with Umbrellas and take the hit with T&C expenses ?
Give up contracting and go permanent ?
I’m currently contracting in the public sector IT (2th Gig + with a few extensions on each ) did contracting for time back in late 90’s (millennium bug paid for my 1st Mercedes at 21 them where the days )
Now all this Umbrella T&C expenses changes
Why do I use a Umbrella Er To Stay Clean and Dry
My rate is just about on the bracket that would be recommended to go limited as such did the maths and there was not much of benefit as my ir35 status is risky. So went with a CUK recommended Umbrella company. (When I say CUK recommended it was awarded CUK Best Umbrella Company of the year at the time )
So far it good been working under a Umbrella claiming legitimate T&C expenses has seen take home rate of around 70% tax affairs are all in order with no need for self assessment forms.
Clients have been good even the “much loved” agents have given me not many problems bar a few late payments on bank holidays.
Overall I feel that contracting as made be a better worker the risk of it all wanting that extension or to be in the running to be on next BIG project all makes you work harder you deliver where “some” public sector permanent workers do not. With the new T&C expenses changes all that is to end. Some may end up taking home less than the permanent workers gets without all the benefits.
I can understand the governments need to address contracting rules can’t say I do not feel for the self employed shelf stackers as I call them you know the dot com companies I am on about that make it’s “staff” use Umbrellas to claim expenses just to get a minimum wage. Government can’t even make them pay tax let alone pay it’s staff in descent way.
HMRC has not factored in how much it relies on IT contractors in the public sector I’m sure that many on this site have been at least been offered a gig in various government services in their time.
Rates may not be the best but are not too bad it’s better then bench time I’m my view.
SO what next
GO limited and all that goes with it IR35, VAT ,Accounts and Self assessment for 30k a year ?
Stay with Umbrellas and take the hit with T&C expenses ?
Give up contracting and go permanent ?
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