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Hourly rate if self-employed, what do I need to factor in?

(9 Posts)
roisin Mon 21-Feb-05 20:19:43

IF I decide to work from home for my boss:

a) Is there any reason why I can't do this on a normal contract (i.e. with set agreed hours, holiday pay, sick pay, etc.)?

b) If I go self-employed, what do I need to factor in to my current hourly rate to come up with a reasonable comparative rate:
* Holiday and bank holiday pay
* NI contributions
Not measurable
* Sick pay
* May not always have regular work

Anything else I should consider?

frogs Mon 21-Feb-05 20:29:36

I'm self-employed, but running my own business, so a slightly different arrangement.

Remember to factor in the hidden costs of using your home as a workplace -- extra cost of heating, lighting and water, wear and tear on carpets, cleaning, telephone costs, paper, printer ink, coffee, teabags etc. etc.

There are limits on what you can reasonably claim a tax allowance for without the Inland Revenue raising eyebrows, but it's worth going as far as you can without reaching that line.

Would suggest you take advice from a good accountant.

roisin Mon 21-Feb-05 20:36:08

Thanks Frogs, that's helpful.

Btw have you seen this thread? I don't know if you have any miracle cures to suggest to Yoyo?!

SenoraPostrophe Mon 21-Feb-05 20:41:40

a) no

b) our accountant says most companies normally allow for 4 weeks' sick pay per year - most employees don't use it all but is a useful figure when working out things like this.

Also remember to factor in your time in piddling about with tax forms, or an accountant!

roisin Mon 21-Feb-05 21:12:43

Thanks SP.

Mirage Wed 23-Feb-05 20:14:34

I don't know if you are planning on having any more children,but if it is a possibility,it is worth considering that 'employed' peoples mat pay is nearly always better than self employed.

If you are classed as self employed,you would be eligable for 26wks at £102.00 a week,or 90% of your take home pay,which ever is the lesser figure.

Also,if you have been s/employed for a certain length of time,you would not be able to claim contribution based jobseekers allowance if you loose your job.

Saying that,I have been self employed for 3 years now & have never regretted it.
Good luck

zubb Wed 23-Feb-05 20:21:48

If you are losing any insurance / life cover / pensions etc with work then factor those in as well.

WideWebWitch Wed 23-Feb-05 23:18:13

roisin, just because you would be working from home wouldn't mean you had to be self employed. In fact, you might well fail the IRev criteria for self employment. Could you work from home and still be employed? Surely that would be simpler all round? Plenty of people do this.

roisin Thu 24-Feb-05 11:30:12

Thanks to everyone who's posted on this thread and the other one - I am still dithering as to what's happening job-wise: lots of possibilities, none seem to suit everyone atm

I may well end up jacking it in completely, just enjoying summer with the boys and do lots of trips
then try and find something new in September.

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