Associate work arrangements for maternity leave

[merryberry]

Doing a bit of life planning.

Considering leaving permanent position for an associate position with protected notice period in a robust start up consultancy. Well I hope it's robust! There is also the option to be an employee. Given that I hope to have a second child in the next couple of years, does anyone know what issues I need to consider around being an employee or associate? Any pointers on which is best for me?

Happy to do my own research and thinking, if someone could tell me where to start. Have been a pampered HR-enriched (cough) person for so long.

Many thanks!

Anybody working as an associate around?

What status are you as an associate - I've been through quite a bit of this in terms of freelance/employed by own company/employee of someone else, but don't know what you fall under as an associate?

I don't yet, am talking to some pople who are offering either employee or assocate working arangemets. idn't know thre ar diff. tyes of associate!

no, sorry, didn't explain myself very well. Are you like a partner as an associate, or do you count as self-employed?

as self employed, not partner.

It's a hard call, isn't it - and I think to be honest you'd need an accountant to weigh up the pros and cons, even just financially.

Assuming you get roughly the same rate as both, the advantage of being an associate is that you get better tax breaks (i.e. gain a few grand a year from being able to charge expenses). And you would just get Maternity Allowance, not maternity pay.

But if you are an employee, you will get slightly more maternity pay (depends on your contract, but at the minimum you get your 6 weeks at 90% more than you would get as self employed) and a guaranteed job after child two - if that's what you want.

There's also the risk that if you are just working for the one company as an associate, the Inland Revenue will decide that you are an employee anyway and not let you claim expenses - so you need to know what the precedents are in terms of your sector.

But it's a real judgement call as a lot depends on a) whether you think this start-up will be around long enough to guarantee you the maternity pay, b) whether being an associate looks better for your long-term career in your line of work and c) whether you would rather be self-employed in the long run.

So I think it's phone an accountant time...

that is very usful inded. i didn't know about the whole IR malarkey if working for a sole company. thank you again for such great pointers, i will talk to dp's accountant.