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I retired at the end of October. Someone has just asked if I could do a bit of consultancy, a few days a month max. Traditionally my options would have been to set up a ltd company, sign up with an umbrella company, or risk it as a sole trader. But it's occurred to me that I can avoid a whole lot of tedious bureaucracy if I just ask them to give me a zero hours contract and pay me for the hours I put in. I've no objection to paying tax and NI. Has anyone done this or have any thoughts?
This is essentially what a lot of contractors are being forced onto with IR35 changes.
If the company are happy to put you on payroll like that, it will be easier for you. They still have to give you pro-rata-d holiday pay and stuff like that, but you can work out a rate to cover that.
Isn’t the limited company thing usually to do with professional indemnity insurance and keeping you off payroll? Even as a zero hours employee the employer has obligations such as pensions and holiday entitlements to fulfil.
In this instance it seems like the easiest thing to do.
You just get paid for the work you do, without the hassle of tax returns and company accounts.
It's what I do now.
Pension you can opt out of.
Holliday pay, legally they should pay me 47/52th (ish) of the day rate and the rest as holiday later, in reality I just get paid the day rate and don't kick up a fuss (not like there isn't plenty of time off!)
Sick pay, no idea how this is supposed to work. Like Holliday there's probably a legal entitlement, but the reality is the day rate is supposed to cover it. If I was ill I just wouldnt get called up and offered work.