Mobilisation & matching civvie pay of day-rate contractor

Discussion in 'Army Reserve' started by Jan_van_Riebeek, Nov 17, 2008.

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  1. Hi Guys

    I have done a search of this forum but I havent found anything for this particular issue. Perhaps someone has experienced the same and could PM me with details.

    I am a day rate contractor working via an Umbrella corporation. As such, the day that I leave to go to RTMC my contract terminates and I am essentially unemployed. I have been on this current contract for 1.5 years and have a P60 and all my weekly pay statements to prove the rate I charge.

    From what I am being told, it seems that if you are not in employment the day you mobilise, then they wont match your pay. However they also say that you shouldnt be monetarily penalised when mobilising, which I would be massively (about 4-5 times less)

    Has anyone else been through a similar situation? If so, did you get your pay matched, and what did you have to show to get this. I mean surely if you show your last 76 weeks worth of pay statements proving a day rate they should take it.

    Please dont answer "speak to your PSI/PSAO/RAO" etc, I will be exploring those avenues as well but want to get it from the end user's mouth first of all.

    Thanks for any help
    Jan
     
  2. msr

    msr LE

    Don't volunteer :)

    msr
     
  3. Firstly I would be very interested in what happens to you as I am in a similar position except I work thorugh my own limited company

    Its my understanding that you have to prove your wages over the last year, so in theory you should be ok
     
  4. I know that if you were working through your own Ltd company, the fact that the contract has expired is irrelevant; that is purely a business-to-business relationship. You would still be employed by your company! But, I've never used these umbrella organisations for contracting, so I'm not sure of the differences between them and your own Ltd (with respect to employment status).
     
  5. Just the attitude the reserve forces need to be seen to have, top notch!
     
  6. And possibly a wee bit late?
     
  7. msr

    msr LE

    You will not get your day rate matched day for day, it will be taken across the year.

    If you want a definitive answer phone Chilwell.

    m sr
     
  8. You’re employed by the umbrella company not the company you’re contracting for.
    So unless you request your P45 before you deploy then you should get your civvy wage matched.
     
  9. I trade through my own limited company, rather than an umbrella company.

    The RAO at RTMC last year required me to provide:

    - my limited company's last audited accounts
    - a statement from my accountant's showing my personal earnings since the last audited accounts
    - a statement from my client stating that I would have continued on the project concerned had I not been mobilised

    It is your personal income that you need to be able to prove, which for you will probably be from 1st April to the present extrapolated to an annual salary. If you did better last year than this, you are probably not going to get the higher figure unless you can prove your financial commitments / likely hardship.

    The RAO's argument was that he wasn't going to pay a consultant / contractor for 'the good times' and not for the times I was on a lower rate or 'resting'. Again, my income was what it was, so had we had a significant difference of opinion then I would have had an problem. I still got to the GBP 548 per day max or thereabouts. Not sure where in the legislation it mentions the client statement bit...

    (It's an interesting question as to what would happen if you elected to mobilise right at the conclusion of a civilian contract, as theoretically your income might be zero for the rest of the year, so the RAO might wish to pay you at your substantive military rank :-( )

    This rigmarole caused the Frog Princess some aggravation getting the statement from the accountants and running it down to the gate at RTMC. Might be best to anticipate the requirement, even if it adds to your annual fees.


    FP
     
  10. FP

    How did you equate dividend payouts into that ? Is the whole whack taken as personal income or just the monthly salary ?

    WH
     
  11. Same as me - I'm interested in going on tour when i'm useful to do so, so i'd also be interested in how this works out in reality. edit - cheers for the info so far FP - very useful.
     
  12. WH,

    Effectively, the RAO looked at my Operating Profit - i.e. fee income less operating expenses (food, travel, hotels etc.).

    Normally my Operating Profit is either paid out as salaries & dividends to the Frog Princess and myself or else retained in the company for leaner times (like now - c. 6 weeks on the bench so far !). As it happened, it all worked out well and I got paid on time, except I am now hit for a greater wodge of personal tax.

    Happy to answer PM's to the limit of my personal experience.

    FP
     
  13. I was in the same boat as the original poster.

    I made an appointment with the MD of the umbrella company I worked for at the time. We went right through the mobilisation bumpf and once he realised that it wouldn't cost him a penny he was right on side.

    He gave me a letter explaining the situation and details of how much I was paid and most importantly what I was expected to earn had I not been mobilised.

    Took that plus P60 and pay slips to Chilwell.

    I found the J1 people at Chilwell to be very helpful and had no problems. I came out more than happy with my reservists award.

    It helps to be honest with them as they sniffed out more than one allegedly fraudulent pay claim while I was in the office.