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Thread ID: 96485 2009-01-12 01:08:00 Payment for casual/contract work? susann (12077) PC World Chat
Post ID Timestamp Content User
737643 2009-01-12 01:08:00 Hi all

I recently left my job and am starting another one this week :) The company I used to work for has asked me to do a couple of days work, finishing off some bits and pieces and so on. Because I am now an ex-employee I assume this will be on a contract or casual basis. I am a little clueless about tax so not sure how this should/will work? Do they just give me a nice cheque and I happily go bank it without worry about tax? Or will they deduct tax/student loan from me as normal? Or should I be set up as some sort of contractor and present them with an invoice?

It is likely there is an opportunity to do more work for them throughout the year so am looking for the best way of doing this. I've had a search on the web and have come up against lots of scary looking tax stuff. I think the next step is to have a chat with an accountant but I thought I'd check here first as I'm sure others here have been in a similar situation.

Thanks for any advice/thoughts.

Cheers
SQ
susann (12077)
737644 2009-01-12 01:31:00 I had a similar thing a few yrs ago . I was made redundant in 96

BUT then re-employed by the same place in 97 . And then went between it and another place (not at the same time tho, I finished one then went to the other), for the next 9 yrs (97 - 2006 ) . On a temp / casual basis .

Both of the employers drew up contracts for so long .

The shortest was probably 3 mths, the longest about 18 mths . But everytime I changed places, there was always a contract, and it was read, agreed upon, and signed by both of us

Even tho, it was temporary for me, I was getting the same pay (more, when I went back the 2nd / 3rd time), as I was getting when I was fully employed by them - from 1990 - 96) .

It went directly into my bank (they still had my bank account details from my previous employment)

The only diff was I didnt have a student loan
Speedy Gonzales (78)
737645 2009-01-12 01:34:00 Yep - it can be different everywhere just say you want them to draw up a contract, then make sure you're happy with it, sign it, make sure they've signed it, then you can't go wrong.

The people who you're working for should be more than happy to supply you with any information you may want.
wratterus (105)
737646 2009-01-12 02:08:00 Did they pay PAYE tax on you? Chilling_Silence (9)
737647 2009-01-12 02:27:00 Did they pay PAYE tax on you?

Who me?

Probably, I still got a payslip, still worked an 8 hr day, even tho i was employed on a casual / temp basis
Speedy Gonzales (78)
737648 2009-01-12 02:42:00 Hi all

I recently left my job and am starting another one this week :) The company I used to work for has asked me to do a couple of days work, finishing off some bits and pieces and so on .

Bugger that . Have a holiday before your new job starts .
pctek (84)
737649 2009-01-12 03:07:00 speedy, thanks for the contract info. It's likely only to be a couple of hours here and there. Did the company/companies you contracted to pay you holiday pay (like a temp agency pays something like 6% I think?). Or did you actually acrue holiday pay?

pctek - lol, I've had the last 2 1/2 weeks off and am going a little stir crazy and need the money!
susann (12077)
737650 2009-01-12 03:17:00 Umm I may have to check with someone, I cant remember .

About holidays . Somehow, I dont think youre entitled (once you leave, and go back again) .

Unless you stay there for so long (your previous employment probably wouldnt be taken into account) .

Since, when you left the first time, they probably paid whatever was owing to you
Speedy Gonzales (78)
737651 2009-01-12 03:28:00 Hi

Check this out, but my understanding is that irrespective of whether you are paid on contract as a casual employee, you will still be required to pay tax. The difference is one of tax rates. As you are starting a new job next week, that job would be your primary employment and hence be taxed at the primary rate. The casual employment (employment in addition to your primary job) would be taxed at secondary rates.

Short term contracts as I understand them (and I have no legal knowledge) incorporate within the pay a percentage of holiday pay.

Wherever tax is involved, good advice would be to check with the Inland Revenue Dept to avoid any unpleasant (tax liability) surprises in the future.
smurf (6545)
737652 2009-01-12 03:38:00 Hi

Check this out
I think you have forgotten to post a link. :o
Renmoo (66)
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