Short Term Contract in UK

Sleepy

I've been approached about a 3 month contract in the UK (Guildford) on a daily rate of £400. Wondering if anyone has any experience of this?

What are the tax implications, do I pay tax there or here? Anyone who's done something similar know what the take home pay after allowing for accomodation, flights over and back every week etc would be roughly?

mood

I would think you pay tax over there.

Would you really need to fly over every week?

Citizens Information would be able to help you out.

Sleepy

Unfortunately I would have to fly over and back as I've a young family here and it's only a short term contract so not worth re-locating for but in the current climate I can't really say no to work!

mood

Sleepy wrote: »

Unfortunately I would have to fly over and back as I've a young family here and it's only a short term contract so not worth re-locating for but in the current climate I can't really say no to work!

I know what you mean. Maybe going home ever second weekend might be more suitable! If you book your flight well in advance you should be able to get them cheaper.

Ouchette

If you've really got to fly back every week, flights from Gatwick-Dublin and back would probably be about €150-180 (about 70 for taxes and 50ish for the ticket and all the nasty extra charges) if you're booking just a week or so in advance. There used to be quite a few deals for €1-10 plus taxes though if you're able to book further ahead and Aer Lingus often seemed to work out cheaper than Ryanair.

You'd almost certainly be paying tax there, so you'll need a National Insurance number to avoid paying emergency tax. You'll probably need a UK bank account too.

Accommodation would cost you about £700/month for a 1-bed flat, I reckon, and I'm not sure, but I think you'd need to pay council tax too. Not sure how it works for such a short stay.

mood

Ouchette wrote: »

If you've really got to fly back every week, flights from Gatwick-Dublin and back would probably be about €150-180 (about 70 for taxes and 50ish for the ticket and all the nasty extra charges) if you're booking just a week or so in advance. There used to be quite a few deals for €1-10 plus taxes though if you're able to book further ahead and Aer Lingus often seemed to work out cheaper than Ryanair.

You'd almost certainly be paying tax there, so you'll need a National Insurance number to avoid paying emergency tax. You'll probably need a UK bank account too.

Accommodation would cost you about £700/month for a 1-bed flat, I reckon, and I'm not sure, but I think you'd need to pay council tax too. Not sure how it works for such a short stay.

I would be cheaper to rent a room in a shared house, a lot cheaper. Check out Gumtree for houses etc. Ring the tax office or citizens information about tax etc. You could be able to claim all tax back after the contract ends.

Sleepy

The recruitment consultant has informed me that I can provide services to them on either an Umbrella Organisation, a Personal Limited Company or PAYE Temporary Worker basis.

I'm reluctant to set up a company for this as I don't want to contract long-term and don't want to be disqualified from unemployment benefit when this contract ends. Can anyone explain the pros and cons of the other two options? I'm guessing PAYE Temporary worker is likely to be the most convenient but leave me with the least take-home pay?

JackieChan

The recruitment consultant has informed me that I can provide services to them on either an Umbrella Organisation, a Personal Limited Company or PAYE Temporary Worker basis.

I'm reluctant to set up a company for this as I don't want to contract long-term and don't want to be disqualified from unemployment benefit when this contract ends. Can anyone explain the pros and cons of the other two options? I'm guessing PAYE Temporary worker is likely to be the most convenient but leave me with the least take-home pay?

If I were you I would go with an umbrella company. There are companies in Ireland that provide the structure/accountancy aspects.

I used one for several years when I started a 3mth contract that got extended and extended!
I just provided details of expenses and timesheets each month and they would invoice for the amount required and pay me the what I should get, after taxes and expenses taking in to account.
Made it so simple for me.

Sleepy

If I go with an umbrella company would I be considered self - employed from the point of view of Job Seekers Benefit at the end of the contract?

Also, if I'm tax resident in Ireland, would I be able to claim my flights back and forth to the UK as a business expense?

DublinWriter

Depressing to see rates haven't changed since 2000!

I did similar stints myself over there. No problem if you're not over there for more than 183 nights in the year - similar tax rules to here regarding residency. You'll still need to pay your tax in Ireland of course.

Not only should you claim flights & hotels (find yourself a cheap Travelodge), but also tax-free daily subsistence. Check with the Revenue Commissioners as to rates.

Another option is buying a car there and bringing it back if you think you'll be there more than six months as you won't have to pay VRT.

Sleepy

DublinWriter - tbh my rate is low because it's my first time contracting and the position is probably a bit below where I'd normally be on a project (you could do it with 2/3 years experience quite easily). I'm just going for it as something to keep some money coming in over christmas and while waiting for prospective employers in Ireland to get their budgets done in January and announce a few positions I've been tipped off will be opening up

Thanks for the pointers!

blondie83

OP the contract's not with a large telecoms company by any chance is it! I've been over in Guildford a good few times on my last job - nice town I must say, but you'll have a problem renting somewhere for less then a year (a good few of our lads going over on 3/6 month contracts had this prob). Though hopefully the rental market has opened up a bit now.

DublinWriter wrote: »

...find yourself a cheap Travelodge...

Hah - stayed in the Travelodge Guildford once before, and while the place was grand, good value, room nice and clean and all, the fire alarm decided to go off all night! Went off at 3am, then again at 4am, then again at 5am. They made everyone evacuate the place at 5am as it wouldn't stop. We were all standing outside shivering while the fire brigade came and checked to make sure there was no fire, and after about half an hour were allowed back in...the fire alarm went off again at 6am!

DublinWriter

blondie83 wrote: »

you'll have a problem renting somewhere for less then a year (a good few of our lads going over on 3/6 month contracts had this prob). Though hopefully the rental market has opened up a bit now.

Had the same problem myself - short term rentals (less than a year) are non-existent in the UK except for a handful of uber-expensive business apartments in London.

I found that you develop 'Alan Partridge' syndrome if you live in a UK Travelodge for any extended period of time. Don't ask. It's not pretty.

vinylbomb

I did something similar through an umbrella company organised by a company called MyOE a few years ago. Basically they pay you minimum wage (or whatever you want of your daily rate) and hold the rest of the cash until you want to claim it back. Once you are out of the UK for 8 or 10 consecutive days you call them up and they route the payment directly back to Ireland from a holding company in Hong Kong so you dont pay UK PAYE on it.

Theres other ways around the UK PAYE system but they're a lot more complicated to set up and tear down for short term contractors.

Although it sounds shady it is completely legit. They have an office somewhere around Farringdon in London if I remember correctly, they might be worth giving a call to.