to take day rate with no benefits over fixed term contribute

[HuntingforBunting]

I work for local government in a professional role. I have been a temp for the L.A. for 4 months. The L.A have been paying my tax so I'm basically an employee of the organisation. I have been offered either a fixed term contract at 33k a year, to start in a few months, or a day rate of 250 quid a day but as a self employed person. I.e. no maternity, pension etc but it's a lot of money. We are ttc at the moment. Aibu to think about taking the money?

As long as your pregnancy starts at least a week after your employment starts, you'd get SMP. I imagine the confusion is whether you'd get any additional, occupational, maternity pay, for which there will be a qualifying period.

You'll need to ask whether going permanent after being a temp is viewed as continuous service or not, then you can work out dates when it's safe to get pregnant in relation to pay!

I work in a freelance capacity. I was offered full time permanent employment with a local organisation and even when I took holiday, maternity, pension etc into consideration I was still far better off working for myself.

The first thing I did was spoke to a self employment specialist accountant and discovered that with me working 43 weeks a year (after tax and private pension contribution and fee for accountant) I was still taking home more than the annual wage would be prior to 40% tax and that was for working 46 weeks a year.

We were ttc DC3 when I took on the role so we saved each month and took a holiday from pension contributions for the duration (1yr) of my 'maternity leave'. I was also entitled to SMP.

Thanks Horace, wooly, much appreciated. These are so many variables I'm unsure about. Permanent employment is certainly not going to happen, that I do know!

Something else worth considering would be if your employer do childcare vouchers?

employers*

Wooly I'm not too sure if they do. Thanks for post, very inspirational!

Should I just phone hr anonymously to find all this out or am I being silly?

Is there anyone you trust within the department you could speak to?

Hunting - what about sick pay? You may have a difficult pregnancy and need time off or more than standard hospital appointments. These will be paid under a fixed term contract, but not day rate. Just something else to consider.

As a contractor you will be responsible for your own Tax, Personal NI and Employers NI. Either by creating a Ltd Co. or going via an Umbrella company (who take a small %age of your earnings).

Reading your post it seems clear that you would be 'caught' by IR35 (google "friday to monday ir35") and not avoid paying tax on everything as 'income'. The LA would not be responsible for MA, sick-pay, holiday pay or anything else. No work = no pay.

The other thing you must consider is that your contract will almost certainly have a notice period - for both them and you. It would also have an 'MOO clause' - mutuality of obligation, meaning they could simply tell you there's no more work for you.

The LA will not be your 'employer' at all. You will have no come-back if they dump you for being pregnant, being off sick or taking time off for medical checks.

I'm not trying to scare you - this is what taking the seemingly high rate of £250 per day would entail.

The other option of them remaining your employer on fixed-term sounds the better option, provided they cover MA, sick, doctors time off etc.