9th March 2010, 07:25 PM
Good points lucidly put Unit! No its not cut and dried and does get difficult sometimes. Oddly as long as you can pay for a lawyer and accountant things normally get easier....
I agree particularly with the problems of scale, of employing other freelancers, and not least of day rate versus wage! I agree that it seems a lot of people have been walking into self-employement (or should that be 'self-employment') almost by mistake and without really knowing what they are getting into. I also agree that the basic misunderstanding by the majority of site staff of the difference between what constitutes a wage, take home pay, a day rate, turnover, costs and overheads means that they end up taking jobs that are well below any minima. And is cause for a lot of confusion and anger, often misplaced.
Self-employment should be about taking control, not being exploited. It is not suitable for everyone, and if you go into it, make sure you ARE self-employed and are getting a decent rate.
SJ, I really doubt a day rate of 15-20% above the digger WAGE is a high enough margin to cover all the costs of self-employment? Maybe 10-20% below a units day rate is more like it? I don't know, as that's not my main area of work? Or do you mean that after costs your taxeable profit (i.e. income) as a freelancer should be 15-20% higher than that of an employed comparitor? Due to the fact that you take more risk and are generally more responsible? In which case I agree! Gets confusing doesn't it!
I agree particularly with the problems of scale, of employing other freelancers, and not least of day rate versus wage! I agree that it seems a lot of people have been walking into self-employement (or should that be 'self-employment') almost by mistake and without really knowing what they are getting into. I also agree that the basic misunderstanding by the majority of site staff of the difference between what constitutes a wage, take home pay, a day rate, turnover, costs and overheads means that they end up taking jobs that are well below any minima. And is cause for a lot of confusion and anger, often misplaced.
Self-employment should be about taking control, not being exploited. It is not suitable for everyone, and if you go into it, make sure you ARE self-employed and are getting a decent rate.
SJ, I really doubt a day rate of 15-20% above the digger WAGE is a high enough margin to cover all the costs of self-employment? Maybe 10-20% below a units day rate is more like it? I don't know, as that's not my main area of work? Or do you mean that after costs your taxeable profit (i.e. income) as a freelancer should be 15-20% higher than that of an employed comparitor? Due to the fact that you take more risk and are generally more responsible? In which case I agree! Gets confusing doesn't it!