Proposal
A New Service…
A few weeks ago, I posted some thoughts around what I believe to be an injustice to the contracting community, the introduction of contracts inside IR35. For those not aware, this is where a contracting role with a client is viewed as an employer/employee type relationship, based on some criteria a government institution has botched together in an effort to raise additional funds from an area of business which has thrived, and brought great benefits to companies and individuals alike.
The inside IR35 contract forces the contractor down the route of having all income invoiced to the client made subject to PAYE Taxes before hitting their Limited (Ltd) Company bank account, which in most cases would cover the employer taxes also. ContractorCalculator.co.uk explain this very well.
In effect, your agreed day rate would be reduced significantly with the full amount being subject to employer and employee taxes. Your VAT liability isn’t impacted, and your Corporation TAX becomes much less (likely 0) as what you get is yours as an individual.
All expenses, such as travel, subsistence, overnight stays if you’re working away from home, which would have been a company expense, now become your own personal expense. This reduces your market as you are no longer able to travel longer distances to clients. In effect, it would reduce your market to around 1.5hr travel radius. – No flexibility
Holidays and sick pay are also a key concern. No Work = No Pay. – Not an employee
Pensions are not offered as part of these types of contracts, as the intermediary may opt to defer the pension at the beginning of a new contract which, by law, most employers must offer. HMRC guidelines
Company Insurances and expenses still have to be paid from the remaining income, which in real terms, does not belong to the company.
Discussions around Employee rights based on an inside IR35 contract are still in their early stages but again, ContractorCalculator.co.uk explain the possibilities and pitfalls very well.
Now to my point. I’m putting my money where my mouth is.
At a time when every penny counts more than ever, Laurel Icon Ltd would like to offer its new service to those businesses who are considering whether or not it’s feasible to embark on a new project, or are part way through projects where there might not be the need to have a full time PM. The other key factor is that the role has already been classed as inside IR35.
Remember, a single PM can run many projects at once as the required time to manage a project is much less than those working on it, and these projects don’t have to be for a single client.
For many years, the project management community has been providing key services to companies to help deliver projects and programmes based on TIME-COST-QUALITY.
TIME – We review the number of days of project management required for your project(s) every 3 months
COST – Your standard 5 days a week contract could reduce to 2, 3 or 4 days based on the complexity of the project or programme
QUALITY – We provide seasoned, well experienced PMs to help deliver your projects
My proposal – Laurel Icon Ltd will provide the PMs on a temp basis for each 3-month contract and will employee them, with the appropriate employment rights, for the term of each contract.
For more information please send your details to enquiries@laurelicon.co.uk