TA, Call up and Contracting

Quick question

I understand that under new guidelines etc that if you are called up that you should get re-imbused for your lost pay up to the amount that your employers pay you.

Well what if you are a contractor ? Essentially Self employed

I'm not TA but thinkng about it but its a killer in my full time job with commitment etc, but I am thinking in the new year of breaking out and picking up contracting which, in theory, means I have time spare to join up (again) but I am a little worried over tcall up and pay. To put it bluntly I could easily pick up 500 quid a day one motn, with the odd 700 quid day, followed by another moth of 300 quid then one of bugger all if you know what I mean.

Would they take take the years timesheets or whatever

The self employed get a really shitty deal out of RFA96, the logic is that you have a job and it matters not who is paying you, so if the salary is being matched then all is tickety boo.

However as what you regard as income is actually revenue from which you cover your direct and indirect expenses including your salary you might be a little discuffed to find that you will only get compensation for the salary bit. Loss of goodwill etc iis tough on you as is the pain of paying commercial rent and rates for 10 months with no revenue to cover it.

You need to separate yourself as a business from yourself as an employee (which Kentigan house are extremely reluctant to allow) Now you as a business can get help with a contractor to cover for your absence and appropriate re-training etc. If however you are something like an IT contractor dodging tax and IR35 you should be able to get pay made up to the total of your P60 and dividends after tax.
The internet knows all and sees all. You need to take a look at www.sabre.mod.uk, which spells out what the rules are for financial support to reservists on mobilisation.

The detailed rules are contained in The Reserve Forces (Call-out and Recall) (Financial Assistance) Regulations 2005, Statutory Instrument No. 859 of 2005 (SI 2005/859). You can view them at www.opsi.gov.uk/si/si2005/20050859.htm

You should then give SaBRE a call on their helpline (0800 389 5459). They will help you answer any remaining questions.

Here is what the SaBRE site says, with some comments from me on what I think the practical implications of the rules will be for you:

Financial support: self-employed reservists

If you are self-employed, you can claim as a Reservist for the difference between your Service pay and your earnings from your business. You can also claim as an employer to replace yourself while you are mobilised.
The difficulty in your case will be that for the first year of your new self-employed business you will have no track record of income from that business which they could use to work out what your average earnings are.

They will be interested in your earnings from your self-employment, so your earnings from your previous (employed) job will probably not be relevant.

So, what you will need is proof of the figures for income which you describe, even if that "proof" is only an estimate of future income and a few months' actual figures.

So the bottom line is that if you are called up during the first year of your self-employment you will find proving your income difficult.

However, it is unlikely that you would be called up during your first year of your self-employment, if you join the TA at the same time as starting your new business. This is because it will take longer than that for you to complete your basic training and then do the follow-on courses which are needed in order to get you "fit for role". The current practice is that they only call up people who are at that level.

Financial assistance for employers

As an employer, you may claim financial assistance to cover the additional costs to you of replacing an employee who is mobilised, over and above their earnings.


The additional costs may include, for example:

* overtime if you use other employees to cover the work of the Reservist
* any costs of hiring a temporary replacement that exceed the Reservist's earnings
* travel, accommodation or subsistence payments if you transfer someone from another area to cover the work of the Reservist.

The maximum amount you can claim for additional costs is currently set at £110 per day, which is roughly equivalent to £40,000 a year.
Employers can also claim for one-off costs such as employment agency fees (for finding a replacement) and training the new bod to do the reservist's job.

If you are planning to be a sole trader, then the idea of hiring someone to do your job for you while you are away is impractical, though. So far as the replacement's salary is concerned, you can only claim for the additional costs over your civvy earnings. So this could mean that a large chunk of (or possibly all) of the money you would be getting from the Army as pay plus financial support might be going to your replacement - not leaving you with much.

There are people on this forum who have practical experience of all this (although not many under the new rules, which changed in 2005). Maybe they will chip in with their stories of what actually happened.

Exemption and deferral

In the case of mobilisation, both you and your employer have the right to seek exemption from, or deferral of, mobilisation if there are sufficient grounds.

The definition of what constitutes grounds for exemption or deferral from mobilisation will vary from case to case; however, in general terms, sufficient grounds could be:


you are self-employed or work in a family-run business which would be seriously harmed by your absence.

A Service Adjudication Officer will decide whether an application for deferral or exemption will be accepted. Every effort will be made to do this quickly and with a thorough understanding of the implications for you, your family or your employer. This is done by balancing your needs, or your employer's, against the needs of the operation and the specific duties for which you have been called out.
Note that you (as a self-employed person) can launch two appeals: one as the Reservist and the other as the employer. The two appeals will (I assume) be consolidated and dealt with together, though.

It is great that you want to join the TA but you must accept the mobilisation liability that comes with it. I think you can read between the lines in what I have written above and work out for yourself what I reckon you should do for the first year of your new business's life, in order to ensure that you are paid adequately in the unlikely event that you are called up within that period.
I'm a contractor and was mobilised for TELIC. I really did not find it a problem.

I found that as long as the staff inputting your finances can understand what you are presenting them they'll have no problem with it. In my case I took in all the copies of my contracts for the previous 12 months showing my daily rate along with all the usual slips and forms. Showing them the daily rate really helps clarify everything for everyone, especally given that much of your income on payslips will be offset against expenses.

The simple thing, is if you are mobilised take every piece of paperwork you can to show your income and expenditure just in case. But make sure that you have the easier to read stuff at the top.

I've been mobilised twice and have found the G1 staff at Chilwell to be exceptionally helpful, they really do everything they can to assist you.
Lostnfound - how did you square it with your client? I didn't get sent to the sand pit on Telic 1, and am not now in the TA, but am curious: my employer is me (my limited company) so if I go back into the TA they will notify me with the new employers letter, but if/when I get mobilised my client will probably have a spaz. Could be tough sh1t on them, but I might struggle to get another contract on returning home.

Similar threads

Latest Threads