Becoming a contractor at work?

[Itsonlyorangejuice]

NC as outing to anyone who knows me IRL. Also, not really an AIBU but posting for traffic, so apologies for that.

I recently returned to work on a PT basis as my DCs are now entitled to childcare hours etc.

I only work 9.30-2 three days a week, which is fantastic. But the office is over an hour away which means it isn't actually working very well (always knew that was a possibility of course). DH works away and is not home in the week to help on a day-to-day basis.

In the last three months I have had to either WFH, or take leave, or abandon the office entirely etc due to (the very usual) reasons such as:

• Preschool asked me to collect one of my children due to being a bit poorly/having a fall etc.
• Kids (or me) need to see a doctor and only available appointment is middle of the day or not around preschool hours
• Hospital appointments
• Kids being poorly and can't go in (preschool bugs just don't seem to ever end???)

I have also been late on several occasions as Preschool has needed me to complete forms/talk to me on site when dropping off, and then hit traffic on the way to work etc. which I appreciate is pretty bad.

I continually apologise profusely as I understand how frustrating this must be from an employer PoV. Employer continually stresses none of the above is an issue as they understand 'what it's like having young kids and being home on your own in the week.' We also discussed it very openly in the interview (I detailed my childcare hours, the fact we have NO family within a three-hour drive to help out, and DH is away, so I am the primary parent Mon-Friday and they were very comfortable with this)

My role is one which can easily be contracted in on a self-employed basis as it's a consultative-type of position. I really like the company, and the job, and want to do well there. But I can't help but feel everyone would get better value for their money/satisfaction if I could freelance/work as a contractor for the same number of hours each week (and the same pay, I wouldn't go up to contractor rates) but so I could WFH on flexible hours, and then be nearer the kids if needed. I could be on-site by appointment etc... I am the only PT employee aside from one other who works one morning a week in a similar post but in a different department. I suspect (for various reasons) however they are a contractor (don't know them well enough to ask!).

I haven't thought it all through and am still new, and finding my feet, but I can't keep letting everyone down all the time so I just wondered if anyone has approached their employer about switching from an employee status to a contractor role, and how they went about it?

Fundamentally, the job has to work for both them and me, and I can't help but think soon this current pattern will become an issue for them, but I am also clear that my priority is of course my kids - We are really lucky in that going back to work was a choice for me - so I could have a bit of 'grown up' time etc.... plus something to focus on in the week as it can be really lonely sometimes. DH would probably prefer me not to do it TBH because of the reasons above and would rather I found a job nearer home, but for these kind of hours, that's like gold dust so I don't want to let the chance go, but I feel I need to find a better way of making it work for everyone. Like anyone does, I deserve to be happy in a job and my employer deserves 100% from me. But at the moment I feel like I'm letting everyone down, because most of all, I'm finding it really hard knowing I'm so far away from my kids - this has been exacerbated by an incident recently that saw one of my children in a&e needing stitches and when I got the phone call I was suddenly overcome with guilt that I was over 75 minutes away from the hospital they were taken to.

I'm rambling. Sorry, I just wondered if anyone had done similar and if it had been beneficial for them, and also, how they approached their employer about it?

Any thoughts or advice greatly appreciated.

I'm not seeing the point. If you want to work "flexibly" i.e. at home etc., then nothing stopping you doing that as an employee. Not sure what benefits you think you'll gain by becoming a contractor. In fact, you'll lose the benefits of being an employee, i.e. paid sick leave, paid holidays, employer providing equipment/training, etc., redundancy etc.

"Contracting" is self-employment or being in business, i.e. multiple clients, using your own equipment, arranging your own training, no obligations to your "employer" etc. Completely different kettle of fish. You'd be crazy to go down that route especially if you aren't planning on increasing your charges up to "contractor" rates, which are higher to compensate for sick leave, unpaid holidays, lack of employment rights, etc.

Thanks pacer - it's because the business doesn't support permanent WFH as an employee that I'm considering suggesting contracting. Boss seems very happy to discreetly support WFH on a needs-must basis, (as per above) but has also stated they can't set a precedent in having a WFH permanent employee.

I'm not suggesting it's an ideal solution. It's not. I'm just trying to weigh up options.

I'm a contractor and it's very unusual for us to get better terms than a perm employee especially around wfh. I personally would put a business case together for wfh and discuss with hr.

You’d be better to discuss flexible working / working from home than move to contracting.

If you move to contracting you’ll also have to pay both your own and the employer’s national insurance and set up a company or join an umbrella company so you would be down money if you didn’t change your rate.
Then there’s no sick pay, no holiday pay.

You would also need to be very careful with HMRC - this would look a lot like "disguised employment" - only one customer, same hours/terms etc as an employee.

Hi itsonly I'm sorry you're having a hard time settling in back at work. I'm an accountant so just wanted to give you a bit of advice.

As a contractor, you're likely to be worse off in the long run, as your employer will not need to pay NI or workplace pensions contributions for you.

More importantly, HMRC are cracking down on exactly this situation, where employees are disguised as contractors. There is a checklist on the HMRC website which can help you determine if you need to be employed as a contractor or an employee, as this will impact on your and the companies tax.

Good luck, hope your situation improves.

Both me and DH are Contractors
I isn’t see how doing the same job with the same employer would be able to be self employed - HMRC might not approve!

Unless your hourly rate is going to increase by at least 50% don’t do it.

Thanks all, I didn’t now about any of that. In the longer term I’d definitely like to contract/freelance and work for a range of businesses in the sector, but not practical right now and can’t do more than I already am. Thanks for the info all x

*know

Unless your hourly rate is going to increase by at least 50% don’t do it.

This. Why opt for all the disadvantages of contracting without the benefits of higher rates? You'd be harming yourself in the long run.

You'll have to go to contractor rates, op, because you'll have to cover all your own tax and insurance expenses as well as perhaps paying an accountant. It's a double edged sword. It looks like a great idea on paper but the reality can be frighteningly bad because you will have no employment rights which means you can have no job with almost no warning. As pps have said the Rev are also cracking down on contractors working for a sole client because it's nothing more than staff without the rights and it's not in the worker's interests. Think very clearly before you commit.

IR35 legislation means that you can't be a contractor with only one client for more than a year or so - so you'd have to move on at that point.

Also the main reason that contractors can charge higher rates is because they have to cover their own holidays, sick days etc - which can add up! If you've got a perm role that can be flexible, I'd hang onto it. The nursery sick-bug phase does get better!

I really think, as others have said, that this will not meet HMRC requirements. Specifically, the arrangements you have described are not IR35 compliant. Check HMRC website - it has a questionnaire you can complete (without entering name etc, it’s all anonymous) to see whether your circumstances are IR35 compliant.
It is NOT a rule you want to break. Both you and your employer could be heavily penalised.

Part time and flexible work is a permanent employee benefit. Contractors and consultants outside of specific professions typically have to work full time and be in the office everyday.

Thanks again all, as I say, I didn't know about any of the HMRC aspect so thanks for the advice.

I'll approach for WFH, but think I have to accept that in all likelihood I just can't make it work.

Thanks :) x

You would also need to be very careful with HMRC - this would look a lot like "disguised employment" - only one customer, same hours/terms etc as an employee.

Exactly this. There would be a limit to the number of years you could work for the same employer like this as a contractor before they’d have to let you go.

You’d need to set up as a Limited Company or go under an Umbrella company which would cost you money if you weren’t planning to ask contractor rates.

You’d need to budget for Accountants fees, you’d need to pay national insurance, PAYE and professional indemnity insurance. You’d need a business bank account (and they usually charge fees).

No sick pay, no holiday entitlement or pay, no death in service or pension rights, no training courses or personal development.

You’d probably drop to a one week notice period.

There’s a very good list of reasons that contractors get paid more than salaried staff.

IR35 legislation means that you can't be a contractor with only one client for more than a year or so - so you'd have to move on at that point.

That's not right. What it says is that if your engagement looks like employment, you must pay a (higher) employee level of taxes. Whether you move on to new clients regularly makes no legal difference.

There would be a limit to the number of years you could work for the same employer like this as a contractor before they’d have to let you go.

I suppose there may be some employers who erroneously believe this, but legally it's untrue.

You’d need to set up as a Limited Company or go under an Umbrella company which would cost you money if you weren’t planning to ask contractor rates.

Sorry, I assumed that was what you were talking about in the first place. No company that has a clue what they are doing will engage a contractor directly, in a scenario anything like the OP's .

Fire I didn’t say it was a legal requirement to change contracts but my personal experience as a daily rate contractor is that most large companies tend to limit how long they will keep renewing your contracts to about 4 years.

And no, I agree, I’d be very surprised if an employer agreed to the OP’s proposal.