I have been asked to go freelance - advice needed before 4pm.

[AnneWentworth]

I am a contracter at present, the job is a temp/perm position.

The company is established in the US and don't as yet have everything set up here. I have been working here for about 5 months and am very happy and they want me to become permanent (I work directly for the Chairman).

I have a call to discuss arrangements later today but the FD has asked if I would be adverse to setting up as a freelancer. I have some reservations:

• I will have to do my own taxes and NI which will take up my time (I have a lot of outside work commitments).

• I presumably won't get all the benefits that being permanent brings like sick pay, holiday pay etc (before things like bonus etc).

• Lack of job security?!

The only plus I can see is that I could at a later date chose to be more flexible in my working practice and could use my freelance business to my advantage - but I have no immediate plans for this.

If I have to do my own tax etc then is it unreasonable to ask for more money? I am not even sure if the two are connected but if I am employed I won't have to incur this admin issue.

It isnt worth it is it?

You need to charge a very different rate as a freelancer than as an employee. You need to think of all the things the company covers for you - software, admin, paid holiday, sickness, maternity etc - and factor it into your rate. Plus the fact that presumably if they want you to be freelance, it is because they do not know if your position will remain permanent, so there is the security issue.

This is an interesting, if not entirely realistic reference for journalists on how to calculate freelance day rate, I've definitely seen more generic/other industry ones on the web.

There is also something called IR35 which you need to be aware of if you are freelancing for a single client. Google or ask one of the many more knowledgeable accountants on here.

Basically, this needs to take more than the next 45 mins to think about!

Sorry, here's the journo day rate calculator bit optimistic perhaps

You are right. I will discuss with him but say that I would need some time to look into all the details and work it all out before I commit.