Contracting Companies

[Silent1]

I'm currently helping someone look for jobs and they're seeing a lot of contract jobs advertised. Is there a one stop shop for them to go to so they don't need to deal with any of the potential pitfalls as they have absolutely no experience outside of PAYE

[Eric Mc]

Silent1 said:

I'm currently helping someone look for jobs and they're seeing a lot of contract jobs advertised. Is there a one stop shop for them to go to so they don't need to deal with any of the potential pitfalls as they have absolutely no experience outside of PAYE

There are a number of alternatives -

operate as a salaried agency worker
operate as an individuakl through an "umbrella" type company
operate as an individual sole trader
operate through one's own limited company

All of these alternatives have their own pros and cons and not all of these options are available or applicable in all circumstances.

Beacuse of the diversity in how short term contract work can be handled, I would not think that there is any one organisation that can sort out all the various permutations.

WEhy do you think that working on a contract basis puts you outside of PAYE?

[Silent1]

Eric Mc said:

Silent1 said:

I'm currently helping someone look for jobs and they're seeing a lot of contract jobs advertised. Is there a one stop shop for them to go to so they don't need to deal with any of the potential pitfalls as they have absolutely no experience outside of PAYE

There are a number of alternatives -

operate as a salaried agency worker
operate as an individuakl through an "umbrella" type company
operate as an individual sole trader
operate through one's own limited company

All of these alternatives have their own pros and cons and not all of these options are available or applicable in all circumstances.

Beacuse of the diversity in how short term contract work can be handled, I would not think that there is any one organisation that can sort out all the various permutations.

WEhy do you think that working on a contract basis puts you outside of PAYE?

I always thought contracting meant that you were employed through a company and not directly to the company, if that makes sense.

[evolution666]

that is correct, you just work for a separate company that bills the one you turn up at 9 til 5 for your time, they put there bit on top and give you the rest.

[Eric Mc]

Silent1 said:

Eric Mc said:

Silent1 said:

I'm currently helping someone look for jobs and they're seeing a lot of contract jobs advertised. Is there a one stop shop for them to go to so they don't need to deal with any of the potential pitfalls as they have absolutely no experience outside of PAYE

There are a number of alternatives -

operate as a salaried agency worker
operate as an individuakl through an "umbrella" type company
operate as an individual sole trader
operate through one's own limited company

All of these alternatives have their own pros and cons and not all of these options are available or applicable in all circumstances.

Beacuse of the diversity in how short term contract work can be handled, I would not think that there is any one organisation that can sort out all the various permutations.

WEhy do you think that working on a contract basis puts you outside of PAYE?

I always thought contracting meant that you were employed through a company and not directly to the company, if that makes sense.

It often does.

There are many contract staff who are paid through the PAYE system.

However, there are some people who think that working through an agent or a contractor somehow means that they are eligible to be taxed in an alternative manner - such as if they were self employed.

Sometimes this may indeed be possible, but one needs to be very careful about one's tax status before opting for a method of taxation outside the PAYE system.

[Grey Ghost]

Silent1 said:

I'm currently helping someone look for jobs and they're seeing a lot of contract jobs advertised. Is there a one stop shop for them to go to so they don't need to deal with any of the potential pitfalls as they have absolutely no experience outside of PAYE

Have a look at www.contractorumbrella.com

They looked after me when I was contracting a while ago and (as Eric says) helped me avoid the pitfalls of HMRC if I stepped out of line.