Permenant to Contract

dionsiseire

I just wanted to ask for some advice on a potential option that might lie ahead for me

I'm currently in a permanent position. Ive been here 2 yr's internship, almost 3 years full time, currently 24 Y/O

There is the possibility of a contract position for 6-12 months which over 12 months pays about 10k more than im currently on.

In my current job, im forgotten about, im learning nothing, have large bout's of inactivity and feel if i don't leave soon i will go backwards and not even work in IT. It seems to be a management thing over the last year, the previous manager was brilliant and i was always busy / learning.

This opportunity is coming up as a potential, and im considering it on the basis that
I'll learn new skills
meet new people
earn 10k more (probably about 7k after tax is factored)
i have no overheads as im back at home thanks to recession/increase in tax etc etc
I also remove from my expenditure petrol to the south side and reckon my petrol costs will reduce by 900 a year roughly based on full year estimate to current location.
I also remove the M50 Toll bridge charge, another 900 a year saving.

I lose VHI (Current company benefit)
Being contract work i believe i will have to do my own taxes / form a company in my name or something to that effect.

I'm just wondering am i mad to be considering this or does it make sense to anyone?

dionsiseire

No opinions then?

MagicMarker

Go for it, keep paying VHI yourself from money saved from petrol/toll bridge though, no sense in losing that!

Look into setting up your own company first though and any expenses that may incur, maybe ask over in the Entrepreneurial/Business Management forum? Make sure it's worth it.

But on the face of it, if you hate what you do right now then there's no harm in taking a chance.

dionsiseire

Yeah i truly don't do anything here, it's nice and all picking up 2k a month for **** all but that's not what i want to do, motivation to get out of bed in the morning is gone

I run a music website and was considering setting up a business in the name of that and go under that moniker. Do taxes and the likes under that. I assume then if i go this route, VAT Claims and the likes would be under my remit.

Lots of stuff to consider, thanks for the forum link, i'll have a look in there too

Eoin

Have you factored in annual leave and sick leave? That's 20 days at least you'd have to make up.

You don't need to form a company, you can be a sole trader. That means annual tax returns which are straight forward enough. If your turnover is over the VAT threshold, then there's some additional overhead there as well.

dionsiseire

Does every form of employment not have to provide vacation days regardless of length?

For example 20 days is the normal vacation days, would i not get 10 on a 6 month contract that i can take to myself or am i expected to work flat out?

Obviously i expect sick days to be unpaid etc etc, thats a factor i'll have to accept.

good things to consider tho, cheers for the input

Eoin

Sorry, I was thinking of someone who is self-employed rather than someone who is on a fixed term contract.

RP Mc murphy

You should check the details of the contract, but i thought that when you were on contract, then any holidays you take, you will not be paid for. On the plus side, you can also probably claim tax allowances on a range of expenses from food to fuel costs.

dionsiseire

I will definitely have a check of the details of the contract, certainly the kind of thing i'd need to look into, i can't imagine working 12 months flat out without some form of holiday etc, i guess it will depend on the company contracting it.

The food and fuel costs will be VAT claims? effectively as sole trader i'd be running my own one man business and anything i do related to the work, travel, food to survive, equipment etc would all fall under this?

Eoin

The food and fuel costs will be VAT claims? effectively as sole trader i'd be running my own one man business and anything i do related to the work, travel, food to survive, equipment etc would all fall under this?

I've already been wrong so far in this thread, but I would be surprised if you can claim expenses from going to what would be considered your normal place of work.

dionsiseire

Yeah but do business's get to claim VAT back on fuel and the likes? i know they can on equipment neccessary to the work load. I imagine i will need a laptop (since my old one just broke) and if i buy one when starting this new position i would imagine i'd be able to claim VAT on it as a sole trader.

The fuel and food etc i would have doubts about too, but if you don't ask the question you could be missing out on something your entitle to

Eoin

You see, I don't know if you're really a business if you're on a fixed term contract. I think an accountant is probably the best person to talk to.

dionsiseire

indeed, might fire of such a question to one now and find out the details. Worth knowing for sure. If im not entitled, im not entitled, if i am, i'll make use of it