Great News – Contract Signed!
Some very exciting news this afternoon. In our 21st year in business, we have just signed our first Master Service Agreement with a global organisation. Looking forward to a busy year this year!
A long time ago… – In The Beginning
A long time ago, on 16th February 2001, our journey into the contracting world started. There was no big dream, no real plan. All I knew was that being in full-time employment was not where I wanted to be.
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.
Business Model
Target for new service
- This new small scale Project Management Service will be targeted at Smaller business who don’t want the cost of a 5 days a week PM when the requirement is only 2-3 days.
- Companies who believe that their requirement for a PM falls inside IR35. Rather than go through an Umbrella company, Laurel Icon Ltd will provide a temp resource who is also backfilled if required for holidays etc.
- Both Employee contracts and Client contracts are reviewed quarterly.
- Initially Employees should be prior colleagues trusted and known
Employee Costs
The Employee Model for the new PAYE Service is shown below: (Rough guidelines using https://www.pcpayroll.co.uk/uk-salary-calculator/)
Level 1. Rough Costs for £25k EmployeeEMPLOYEE FINANCES
EMPLOYER COSTS
Level 2. Rough Cost for £50k Employee
EMPLOYEE FINANCES
EMPLOYER COSTS
Level 3. Rough Costs for £75k Employee
EMPLOYEE FINANCES
EMPLOYER COSTS
| Assuming that the worst case scenario is 2 days work per week at £450 Initially this would allow for a single £25k employee In quarter 1.
Depending on the level of work coming in this can increase to level 2 or 3 If 3 days @£450 then Level 2 If 5 days @£450 then level 3
The work levels would be reviewed every 3 months and new contract signed at the appropriate level based on Income.
For each employee, the remainder of the cash-pot would be saved in a separate account, and if appropriate to the contract, travel costs deducted. At the end of each 3 months a bonus would be paid to both employee and company based on the following:
50% kept for Sick/Holiday Leave, travel expenses or other changes i.e. drop in Days to a lower level. Remaining 50% split between employee and company. If working at a higher level during the 3 months a larger % given to employee as bonus.
Examples of bonus: Level 2 PM Earns £50k pro rata – net £2990.60 per month Over 3 months with 3 days work savings are approx 250/week (£1350 earned – £1094.33=£255.67) Total is approx £1000 every 4 weeks Total over 3 months is £3000
£1500 retained for next 3 months £1500 split as £750 bonus to employee + £750 to Company
Level 3 PM Earns £75k pro rata – net £4199.09 per month Over 3 months with 5 days work savings are approx £600/week (£2250 earned – £1641.44=£608.56) Total is approx £2400 every 4 weeks Total over 3 months is £7200
£3600 retained for next 3 months £3600 split as £2000 bonus to employee + £1600 to Company
The retention of the extra is to allow for changes in working days to the detriment of the company whilst the employee continue to the end of the 3 month contract on full pro-rata PAYE |
About Alan
Alan Forrest – Director/Owner
Alan is a founding director of Laurel Icon Ltd with a career spanning 3 decades and experience across diverse sectors and cultures. Many companies have benefited having Alan leading programmes and projects with his ability to influence board members, mentor technical professionals in best practice methods for delivering successful programmes and projects to improve processes where needed or where none exist, instil a culture of change and control.
IT Consultant – New Business Venture
IT Consultant – New Business Venture
Everyone Entertained is a brand new active entertainment centre. We have signed a contract to provide guidance on, implement and support their operational IT infrastructure for 25 potential sites across the UK.
IT Programme Manager – Digital Transformation
IT Programme Manager – Digital Transformation
Leading the IT Programme at the heart of Hays Specialist Recruitment’s UK Strategy to deliver a world-class workplace allowing new opportunities and continuous improvement for a market leading recruitment company.
Covid-19 – Remote Access Delivery Manager
Covid-19 – Critical Remote Access Delivery Manager: Hays Recruitment Specialists
Currently under tremendous pressure to provide critical services to key workers during the current Covid-19 crisis. My team has built, configured and delivered approx. 200 laptops to the Hays UK&I business. This has been done within 2 weeks with the aid of key business, non-technical personnel. Key build and config information has been created and provided to enable/aid the remote, manual delivery of the laptops by the end users, with support from the technical delivery team.
Student Placement: Great Feedback
In 2016 Laurel Icon Ltd, in conjunction with Fujitsu Services, placed a young computing student with the Fujitsu Engineering Team. During the 6-week student placement, the student helped fit out the computer systems for a new build school (Inverness Royal Academy).
The student has received thanks from both Fujitsu and the Highland Council for the tremendous effort which attributed to the schools successful opening:
“……Team were brilliant and considering the conditions we were working around I think it went well. Special thanks to your two team leaders, Alan and Rachel, also the constant young Master Forrest. We’re not done yet I know, but worth noting thanks at this stage as we have had a successful opening. ” Andy Robb – ICT Curriculum Liaison Manager”
“……It’s always a pleasure to pass on messages of this kind. I would like to echo them as showing how our teams consistently strive to outperform each day, thank you.” Stuart Barnett – Fujitsu Service Delivery Manager
“……I would like to thank Connor for all his hard work for the time I spent at IRA. It was very much appreciated” Rachel Ravenhill – Senior Technical Services Engineer
Laurel icon hopes to repeat this work experience in the future for other students.