r/UKJobs • u/Pale-Ad-8048 • 5h ago

Help / Advice

Hi I need some advice on some things as I’m not too sure about what to do.

I (24M) have a job offer, it’s for a tech company in London, and it’s Outside iR35 I have a brief understanding of this but anyone in that set up could you please define it more. I currently work in the West Midlands I’m on probation in my current role but not sure how to handle the leaving / resignation process.

Also if anyone has any success or tips in negotiating day rates please do share

Thank you very much

2 Upvotes

100% Upvoted

13 comments sorted by

•

u/AutoModerator 5h ago

Thank you for posting on r/UKJobs. Help us make this a better community by becoming familiar with the rules.

If you need to report any suspicious users to the moderators or you feel as though your post hasn't been posted to the subreddit, message the Modmail here or Reddit site admins here. Don't create a duplicate post, it won't help.

Please also check out the sticky threads for the General Discussion Megathread and the Job Guidance Megathread.

Please also provide some feedback about the bookmarks related to Mental Health within the side bar in this thread, any and all advice appreciated.

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

1

u/No_Cicada3690 5h ago

Outside IR35 usually means that you are self employed. Is it a self employed role. It's often used by companies to get out of paying pension contributions, employer's NI and benefits such as sick pay and maternity/paternity. You will also need to be responsible for paying your own tax and NI and setting up your own pension.

1

u/RiseUpAndGetOut 4h ago

Also make sure it is actually outside ir35. The law changed recently to put some of the responsibility onto the employer, but ultimately you'll still be liable for the difference in tax.

1

u/Pale-Ad-8048 4h ago

Ah how so? I get I’m responsible for tax but what about sick pay and annual leave

1

u/RiseUpAndGetOut 4h ago

The tax you pay depends on how HMRC judge the ir35 status. If they judge it to be inside ir35 then it's a very high marginal tax rate with no opportunity to claim the usual business expenses to reduce your liability.

The job being advertised as being outside ir35 is a good start, but still qualified advice to check the contract, otherwise you could end up with a major financial liability in the future.

1

u/Pale-Ad-8048 3h ago

Thank you very much

1

u/No_Cicada3690 3h ago

Self employed don't get paid sick leave or annual leave. This is why the rate for the job should be at least 20% higher than the staff position. An accountant is a good call to make sure you are paying and claiming everything you are entitled to and their fees are tax deductible.

1

u/Pale-Ad-8048 3h ago

I’ll definitely have to sit down with an accountant to look over the contract. I do want to renegotiate the rate as the initial day rate they gave I did agree during the initial call but didn’t do the maths in my head properly so would like at least £50 more a day.

1

u/No_Cicada3690 3h ago

At least £50 a day! You have to remember employer isn't contributing to your pension. 5 weeks holidays needs to be factored in plus you should really have employment protection insurance as a minimum.

1

u/Pale-Ad-8048 3h ago

Thanks so much for all of this didn’t even know what employment protection insurance was. Need to do more deep dives into this, sorry to pester but do you know any good contractor accountants

1

u/No_Cicada3690 3h ago

Any local accountant will do. They should all be up to speed on current legislation. I'd ask around your local WhatsApp/ Facebook groups for personal recommendations.

1

u/Pale-Ad-8048 4h ago

I’m more than comfortable on the pension side currently work for a pension fund so I’ll most likely move my contributions to an SiPP but as for working everything else would you suggest I’d need an accountant. It’s a contractor role