Contract role within IR35

[KurriKawari]

I have always had permanent jobs where the payroll department has managed my tax, NI, pension and salary.I have been offered a 12 month contract role that is inside IR35. Is there anything I need to be aware of and put into place? esp re tax and decisions.

Also I know I won't get paid for any leave I take, but is there a limit to how much leave I can take? How can I ensure I am covered in case of illness?

I also have a civil service pension that I have paid into for about 4 years, what is the best thing to do with that pension when I start this new role.

Thank you.

Your contract would usually cover how decisions are made about how many working days you provide.
You will either be self employed or in a shell company and depending on which route you are using will depend on tax and sickness etc,

You will probably find (assuming it's through an agency) that they pay you through an umbrella company. The umbrella company will receive your day rate, make deductions, and pay you the remainder.

Their deductions will include you tax and your NI, plus their handling fee, but also the employer's NI and the apprenticeship levy. This may mean you receive less than you expect.

Holiday will be yours to manage, but you'll want to limit it as you'll see exactly how much it costs you in unpaid day rate.

Sickness cover etc you'd need to look into critically illness covers and the like, but they cover you for things like cancer and strokes, not you feeling under the weather for a few days - you'd just not get paid in that case.

Your pension is almost certainly best left where it is - it will continue to be managed through the CS scheme. But if you want to set up a second pot in your new career path you should look for an IFA to advise. They can also advise on critical illness cover and the like.

Just to check, are you sure about this? Working in the CS is very different from what you look set to embark on. It's a big move, and one that I'm not sure you've got your head around fully. Are you taking advice from anyone?

As PP said, Inside IR35 means you’ll likely be paid through an umbrella. Make sure you understand exactly how your hourly rate works, it’s not the same as a gross salary for employees. Look for umbrella calculators online to work out your take home, and see if the umbrella can send you an example payslip to understand all the deductions.
Do your research on the umbrella company, they are poorly regulated and unfortunately some are unreliable or worse, run dodgy schemes to -supposedly- improve your take home. They will do pension contributions for you so ask them if they allow salary sacrifice and if there are any fees etc…
last time I worked inside, I think I could get Statutory Sick Pay after x days off, but I didn’t need it so didn’t look into it in details, but you can ask the umbrella before you start