Need advice pretty urgently

Iano_128

Really hoping someone can help me here.. I've had a phone call from a recruitment agency who have asked me to go for an interview tomorrow evening for a job that is very similar to the one I am doing currently (which is a 1 year rolling contract position).


This new job is a "day rate" job and is a 6 month contract with a possibility for an extension. I don't really understand the whole day rate thing so am hoping someone can explain it to me.

What I think it means: I will not get paid for any holidays (don't even know if I'm entitled to any).

I would have to pay my own tax (the guy said I wouldn't and that an Umbrella company will do everything for me).

I can be let go at any time.

I would not be eligible for the social if I was to be let go at any stage because I would somehow be self employed.


If anyone can explain this to me it'd be very much appreciated.

yop

Iano_128 wrote: »

Really hoping someone can help me here.. I've had a phone call from a recruitment agency who have asked me to go for an interview tomorrow evening for a job that is very similar to the one I am doing currently (which is a 1 year rolling contract position).


This new job is a "day rate" job and is a 6 month contract with a possibility for an extension. I don't really understand the whole day rate thing so am hoping someone can explain it to me.

What I think it means: I will not get paid for any holidays (don't even know if I'm entitled to any).

I would have to pay my own tax (the guy said I wouldn't and that an Umbrella company will do everything for me).

I can be let go at any time.

I would not be eligible for the social if I was to be let go at any stage because I would somehow be self employed.


If anyone can explain this to me it'd be very much appreciated.

Hi,
I have been daily rate for guts of 4 yrs now.
Don't get paid holidays. Get weeks notice.
Social welfare is messy, have a look here (http://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/unemployed_people/self_employed_and_unemployment.html)

Under an umbrella company they will pay all your taxs and VAT (if you go over the threshold).
They will take a % of your daily rate or charge you a monthly fee. You need to ask all these questions.
So they will give you X amount per day, ask them how much they are taking to handle you affairs.
I worked under one (no pun intended) when I did a short term contract back in 2001, but I handle all my own taxes and VAT now, its very easy to do as I have generally no more than 2 clients on the go.


To add to that sorry, get your daily rate multiply it by 5 and then by 48 (weeks) to get your salary. We generally say we will take 4 weeks out of the year for holidays.
Best of luck

Iano_128

Cheers for your reply Yop! Good to have some sort of information, I'm just pretty skeptical about taking a job I don't understand the employment in's and outs of. If I was to want a days holiday, would I just take it whenever I want then? See in my situation it would be a couple of hundred users I'd be supporting for 1 company, so not sure how that would work out doing my own taxes and VAT, although I'd have absolutely 0 confidence in that end as maths is very much not my strong point.

yop

Iano_128 wrote: »

Cheers for your reply Yop! Good to have some sort of information, I'm just pretty skeptical about taking a job I don't understand the employment in's and outs of. If I was to want a days holiday, would I just take it whenever I want then? See in my situation it would be a couple of hundred users I'd be supporting for 1 company, so not sure how that would work out doing my own taxes and VAT, although I'd have absolutely 0 confidence in that end as maths is very much not my strong point.

Your grand re the maths, its v straight forward. I have an accountant, pay 500 per year and he checks all my calculations before I do a yearly return and he is there if I have questions.

You are going to be working for 1 company is that correct?

You need to charge VAT to the company and pay VAT to revenue if you earn over 35k per year.
Your PPS is your VAT number but you need to register for VAT through Revenue.

Say you are paid 200 per day and work for 20 days a month.
You will issue an invoice for 200*20 -> 4000
You then charge VAT on top of that and add that to the invoice.

You get paid the full amount.

Then every 1/4 you login into ROS and you submit a VAT return (v simple).
Then at the end of Oct each year you submit your returns for the PREVIOUS year.

Iano_128

Yep it's working for 1 company, and that company employs a couple of hundred staff, who I would be supporting. If I was to be successful in my interview, I'd work a months notice with this company, meaning that the earliest I would start in the new place would be around the 30th October. Does this mean I wouldn't need to do any returns this year? And also that I would only need to do returns for Nov and Dec when next October comes? Sorry if I'm overcomplicating things here I'm probably worrying too much about stuff I don't need to.

yop

Iano_128 wrote: »

Yep it's working for 1 company, and that company employs a couple of hundred staff, who I would be supporting. If I was to be successful in my interview, I'd work a months notice with this company, meaning that the earliest I would start in the new place would be around the 30th October. Does this mean I wouldn't need to do any returns this year? And also that I would only need to do returns for Nov and Dec when next October comes? Sorry if I'm overcomplicating things here I'm probably worrying too much about stuff I don't need to.

For 2013 you do your returns in Oct 2014.
For VAT invoiced in Nov and Dec 2013 you will pay this in Jan 2014.

Ask away, I am certainly no expert on this, so any mistake anyone else spots pls help the OP.

It sounds complicated but its not, honestly.

Your working for 1 company so it will be easy to do it.

Iano_128

Ok I get you with the returns, and I'm sure you're right, if I had the paperwork in front of me I'm sure I'd get my head around it quick enough. I'm waiting on a call back to confirm if my interview is tomorrow straight after work or else Wednesday so hopefully I'll have a better understanding after that. Thanks very much for your help really appreciate it! I was totally lost

yop

Iano_128 wrote: »

Ok I get you with the returns, and I'm sure you're right, if I had the paperwork in front of me I'm sure I'd get my head around it quick enough. I'm waiting on a call back to confirm if my interview is tomorrow straight after work or else Wednesday so hopefully I'll have a better understanding after that. Thanks very much for your help really appreciate it! I was totally lost

Not at all. PM if you need and I will help if I can.

Good luck with the interview.

kryptonmight

I've been contracting in the past and I think you can get a place to setup an umbrella company but still be PAYE with through it. That way I think you are still entitled to jobseekers benefit if you are unfortunate enough to lose your job and you won't have to do a tax return etc.

Some people go the other route and setup their own Ltd company (again you can get this done for you or do it yourself) but this is the one that requires the yearly tax returns to be filed and I think you can run into issues if you try to claim the dole if you find yourself out of work.

I never went the Ltd company route myself when contracting, I just did it through the umbrella company as that way I was PAYE and didn't have to send any tax returns.

The downside will be that because you are on a daily rate, you are unlikely to receive holiday pay, sick pay or any other benefits really. You will get paid for each day you work and if you are not working, you won't get paid.