[Gllug] [JOB] - Perl developer in Linux environment

[paul at ma1.se]

Jason Clifford wrote:
> On Fri, 10 Nov 2006, John G Walker wrote:
> 
>> About twenty-five years ago, I read an article in which someone had
>> calculated that a contractor had to earn about 250% of an employee's
>> wage to be on the same real income, due to the factors Jason cited. I
>> don't know how that figure stands up now that IR35 is in operation,
> 
> If you are caught by IR35 you are only allowed 5% of your income to cover 
> all expenses. The rest is treated as employment earnings and you are 
> required to pay full income tax, employers NI and employees NI on it.
> 
>>From your net income you then need to cover things like pension 
> contributions, etc. Don't forget that although a contractor pays full 
> employment taxes they will usually be refused any state benefits if they 
> are unable to work.
> 
> Jason Clifford
> 

I was a contractor in the late 90's and opted to work in full time 
employment in 2000, when IR35 was just coming into effect.

If I'm not mistaken IR35 only applies if your are just tied to one "job" 
or "customer" who is in fact your "employer." If you are a genuine 
freelancer with a range of customers and contracts then it doesn't apply.

I'm now self employed again, not as a "contractor." I have over 1700 
customers. I've just decided working for others is not for me and I also 
started to feel my age in the businesses I worked in (well you are 
considered old at 30!).

Also as you get older you tend to want a bit more flexibility and make 
lifestyle choices, for example working part time - if you can afford it.

Regards


Paul Lee
www.ma1.se
-------------- next part --------------
-- 
Gllug mailing list  -  Gllug at gllug.org.uk
http://lists.gllug.org.uk/mailman/listinfo/gllug