Thread: 80% retirement
View Single Post
  #2  
Old January 11th 10, 11:33 AM posted to uk.finance
Martin
external usenet poster
 
Posts: 316
Default 80% retirement


"Reentrant" wrote in message
...
I've accepted redundancy but my about-to-be-former employer wants me to
work part-time under contract on a self-employed, sole-trader basis (ie
not as a ltd company)

1) They've offered me a rate of about double what my salary was - is that
about right to compensate for no holiday, sick pay, pension, NIC etc?

2) They don't mind if I work one day a week or one week a month. Is one or
the other better for NIC purposes?

Not sure HMRC would let me register as self-employed for one week a month
and deregister for 3 weeks to avoid 3 x Class 2 payments. I already have
enough NIC years for a full pension.
--
Reentrant


1. 100% uplift in usually more than enough. 50% is about "par".

2. Makes no difference. NIC2 applies anyway (unless you are granted
exception), and NIC4 is based on full tax-year.

Your big problem is whether you would qualify (in HMRC's view) as self
employed - and at first sight I very much doubt it. Sounds much more like a
zero hours contract, and this would not remove the liability from your
employer for holidays, SSP, Class 1 NIC etc.

--
Martin

Ads