Contract work Umbrella/PAYE Contract work Umbrella/PAYE
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    Default Contract work Umbrella/PAYE

    Hi

    I previously posted about a job in Sweden, however that might not happen now.

    I would like some advice on contracting work in the UK. I saw a job advert which would suit my profile and the pay is £400/day and it says Umbrella/PAYE only.

    Please can you advice how much one can expect to take home using this figure.

    I really want to get into contracting but it seems so daunting as I don't seem to understand the implications as there are so many options. Any links to topics for beginners will also be much appreciated.

    Many thanks for your help in advance.

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    I'm sorry but you've got to do a bit more research than this. There are a host of links on the right including a First Timers Guide and also a link called Contractor Calculators. Typing your question in google will bring back a ton of calculators as well.

    Need to put a bit more legwork in than this I am afraid.
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    Quote Originally Posted by ContractingBrit View Post
    Hi

    I previously posted about a job in Sweden, however that might not happen now.

    I would like some advice on contracting work in the UK. I saw a job advert which would suit my profile and the pay is £400/day and it says Umbrella/PAYE only.

    Please can you advice how much one can expect to take home using this figure.

    I really want to get into contracting but it seems so daunting as I don't seem to understand the implications as there are so many options. Any links to topics for beginners will also be much appreciated.

    Many thanks for your help in advance.
    Finger in the air calc of 65% of 400 - around £260pd.

    You'll need to check if I'm right or not mind...

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    Quote Originally Posted by northernladuk View Post
    I'm sorry but you've got to do a bit more research than this. There are a host of links on the right including a First Timers Guide and also a link called Contractor Calculators. Typing your question in google will bring back a ton of calculators as well.

    Need to put a bit more legwork in than this I am afraid.
    Yes you are right, I need to do more research but just wanted an initial figure. I missed the links on the right, will read them now. Thanks for pointing out.

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    Quote Originally Posted by cojak View Post
    Finger in the air calc of 65% of 400 - around £260pd.

    You'll need to check if I'm right or not mind...
    Many thanks. I googled it and it seems more like 60% so you are pretty close.

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    So I have doen some digging and also spoke to some agency.

    They are suggesting that at a rate of £440/day or £9,240/month I will take home roughly £5,500/month.

    Does this seem realistic?

    Also I wonder if that's a good salary to move to London? I currently live in East Midlands and earn about £2,900/month after tax of course living costs are lower here.

    Thanks for any thoughts or comments in advance.

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    Quote Originally Posted by ContractingBrit View Post
    So I have doen some digging and also spoke to some agency.

    They are suggesting that at a rate of £440/day or £9,240/month I will take home roughly £5,500/month.

    Does this seem realistic?

    Also I wonder if that's a good salary to move to London? I currently live in East Midlands and earn about £2,900/month after tax of course living costs are lower here.

    Thanks for any thoughts or comments in advance.
    What do the calculators you found say?

    There is a lot more to it than your question which is why you really have to step up and work it out yourself. This is your income we are talking about. Surely you should be trying to get a grasp on that rather than someone else doing it for you.

    Is the gig inside or outside IR35? LTD/Brolly/PAYE? How much travelling will you do, how much to live there? If it's inside then no travelling expenses are allowed.

    Remember even though it's a salary you are still on a short term contract so it might be a good salary but it won't be there in say 6 months time when you have no work and don't have a single penny coming in. What are you doing about your warchest?

    and so on and so on. Google is rather fantastic at helping you here and I'm sure even the East Midlands have it now.


    And BTW don't trust a single word an agent tells you.
    Last edited by northernladuk; 26th April 2019 at 15:10.
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    Quote Originally Posted by northernladuk View Post
    What do the calculators you found say?

    There is a lot more to it than your question which is why you really have to step up and work it out yourself. This is your income we are talking about. Surely you should be trying to get a grasp on that rather than someone else doing it for you.

    Is the gig inside or outside IR35? LTD/Brolly/PAYE? How much travelling will you do, how much to live there? If it's inside then no travelling expenses are allowed.

    Remember even though it's a salary you are still on a short term contract so it might be a good salary but it won't be there in say 6 months time when you have no work and don't have a single penny coming in. What are you doing about your warchest?

    and so on and so on. Google is rather fantastic at helping you here and I'm sure even the East Midlands have it now.


    And BTW don't trust a single word an agent tells you.
    You have raised some great points here, thanks. You are right I need to get a better grasp of the end salary. Google does help mate but there is an overload of information but I have the weekend to do more research.

    I do know its inside IR35 regulation as the recruiter mentioned it and I will be paid as a PAYE part of an umbrella company.

    I will actually move to London closer to the job. The job is inside London. What do you mean when you said travel expenses are not allowed?

    Also warchest - I am not too sure what you mean by that either.

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    Quote Originally Posted by ContractingBrit View Post
    You have raised some great points here, thanks. You are right I need to get a better grasp of the end salary. Google does help mate but there is an overload of information but I have the weekend to do more research.
    But I think you need a better grasp of contracting as a whole. You mention you will move closer to the job. You realise that this isn't a job. It's a short term gig. There is always the possibility you can get canned in reception on the first day with no compensation coming to you. There is usually a notice period in the contract but there are also other clauses that mean they can get rid of you there and then. We have no rights as contractors.

    I can't help thinking you've seen massive numbers and are getting all giddy without understanding anything about what you are letting yourself in for. Have you been looking at gigs closer to you or are you just jumping at one that's making your perm salary look a bit second rate.

    I do know its inside IR35 regulation as the recruiter mentioned it and I will be paid as a PAYE part of an umbrella company.
    OK but why not look around for gigs that are outside?
    I will actually move to London closer to the job. The job is inside London. What do you mean when you said travel expenses are not allowed?
    As a contractor with a LTD travel to and from a client is classed as business travel/accommodation and our company can pay expenses back to cover the costs of stay away gigs or with expensive commutes. Inside IR35 are not allowed to claim expenses. Any travelling/accommodation comes out of your pocket.
    Also warchest - I am not too sure what you mean by that either.
    A warchest is a lump of money to tide you over when there is no work? We work on short gigs that can be as short as three months (even less as mentioned above). We've then got to go find more work while we have no income coming. If you spend all that 5k you are drooling over you won't have a penny for time you are out of work for 3, 6, whatever months. It comes to us all at some point.
    Read the last post and work backwards of this thread. Some grim reading on here.
    https://www.contractoruk.com/forums/...arket-176.html

    As already mentioned, the first timer guides go a long way to covering most of these points and a hell of a lot more.
    You are an inexperienced contractor so you'll find the second gig is the hardest to get. You don't have the comfort of a full time job while you look as you did for the first. No work, no income.
    Last edited by northernladuk; 26th April 2019 at 15:45.
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    Many thanks for your detailed and careful response. Very useful.

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