Finance Professionals looking at Interim positions - FAQ's
What is interim work?
Interim work simply refers to a temporary position in a company. Companies generally hire on an interim basis to fill a specific role within a company or to address a specific need or project. As an interim you would act as a substitute for a permanent finance employee, bringing in specialised skills and expertise to help the company meet its financial goals.
What are the benefits of taking an interim position?
There are several benefits for finance professionals who take on interim positions:
Career diversity: Interim finance work allows professionals to gain experience in a variety of industries and organisations, providing them with a diverse skill set and broadening their knowledge base. You can add expertise to your CV, and connections to your network, in a short space of time.
Flexibility: Interim positions are typically short-term contracts, which can offer more flexibility for those who don't want to commit to a full-time role or who prefer to work on a project-by-project basis.
High demand: Interim finance professionals are in high demand, as companies often need specialised expertise on a short-term basis. This can provide finance professionals with multiple job opportunities and a strong pipeline of work.
Increased earning potential: Interim finance roles often come with higher rates of pay compared to traditional permanent roles, as they require specialised skills and knowledge.
Improved resume: Interim finance positions can help finance professionals enhance their resumes and demonstrate their versatility and adaptability to potential employers.
Overall, interim finance work provides finance professionals with opportunities for career growth, increased earning potential, and a flexible work schedule.
How long do interim assignments typically last?
Interim assignments typically last anywhere from several weeks to several months, although some can last for over a year.
The length of an interim assignment depends on a variety of factors, including the scope of the project, the complexity of the role, and the availability of the interim worker. Some businesses may bring in an interim worker for a short period of time to address an immediate need, while others may engage an interim worker for a longer period to provide ongoing support and expertise.
Ultimately, the length of an interim assignment is determined by the needs and goals of the business.
How is pay determined for interim work?
Pay for interim workers is typically determined based on the market rate for the skill set required for the job or completion of a project, the experience of the interim worker, the length and complexity of the project, the budget and compensation policy of the hiring organisation and of course the location or whether the worker is being hired remotely.
It is important for both the interim worker and the organisation to have clear expectations and agreements on the pay and compensation package before starting the interim work. Camino Search provides unbiased salary guidance based on our market knowledge, you can view our interim salary guidance here but for more bespoke salary guidance based on your skills and experience, speak with one of our consultants.
How quickly can I obtain an interim position?
Once you have sent your CV to the Camino Search Interim division, they will arrange a pre-screen with you. We aim to meet all candidates face to face but this can be done via teams if not possible.This is to ensure we can get you into relevant processes as efficiently as possible.
If you have the right profile for one of our clients you will be in process just 24 hours later and can expect an interview in 2-3 days.
What is the difference between umbrella payroll and limited company payroll?
Umbrella Company Payroll:
Interim employees are hired by the umbrella company and are considered its employees.
The umbrella company is responsible for paying the employee's salary, taxes, and National Insurance contributions.
Interim employees receive a net salary after the umbrella company has deducted these deductions.
The interim employee is not considered self-employed and does not have to register for self-employment.
This is a simpler and more straightforward option for interim employees who are not interested in setting up their own limited company.
Limited Company Payroll:
The interim employee sets up their own limited company and is considered self-employed.
The limited company pays the interim employee a salary and is responsible for paying Corporation Tax on the company's profits.
The interim employee must register their limited company for self-employment and keep appropriate records.
This option provides more control and flexibility for the interim employee, but also requires more administration and record keeping.
What is the difference between PAYE and FTC?
PAYE (Pay As You Earn) and FTC (Fixed-Term Contract) are two distinct employment statuses that a company can offer to interim employees.
PAYE refers to a method of deducting income tax and National Insurance contributions directly from an employee's pay by the employer. An interim employee on a PAYE basis is considered a regular employee and is entitled to the same benefits and rights as a permanent employee.
FTC, on the other hand, refers to a type of contract that is for a specific, limited period of time. An interim employee on an FTC basis is not considered a regular employee and may not be entitled to the same benefits and rights as a permanent employee. FTCs are commonly used for short-term projects or to cover periods of absence.
In summary, the key difference between PAYE and FTC for interim employees is the employment status and the accompanying benefits and rights.
What are the benefits of being outside IR35 to an interim worker?
The IR35 tax legislation in the UK affects the taxation and national insurance contributions of individuals who work as intermediaries, such as through a limited company, but who would be considered an employee if they were contracted directly.
When a company hires an interim employee who is "inside IR35," it means that the individual is considered to be an employee for tax purposes, and the company is responsible for deducting tax and national insurance contributions from the payment made to the individual.
When a company hires an interim employee who is "outside IR35," it means that the individual is not considered to be an employee for tax purposes, and the company or umbrella company does not need to make any deductions from the payment made to the individual. Instead, the individual is responsible for paying their own tax and national insurance contributions.
Companies with an annual turnover of less than £1.2m are automatically exempt from IR35 but typically outside IR35 is used for positions that are project focused and aren’t subject to supervision, direction or control.
Interim workers outside of IR35 will often provide their own equipment and you will also need to do your own bookkeeping and invoicing for your ltd company. If you are happy to do so then beingoutside of IR35 does provide more opportunities and freedom because you manage your own time and aren’t under any direction or control from anyone in the business.
Can an interim worker be converted to a permanent worker? How does this work?
Yes, an interim finance worker can be converted to a permanent finance worker. The process for converting an interim worker to a permanent worker can vary from company to company, but typically involves the following steps:
Performance evaluation: The company will assess the interim worker's performance and determine if they have met the requirements and expectations for the role.
Interest from the interim worker: The interim worker must express their interest in being considered for a permanent position.
Availability of permanent position: The company must have a permanent position available that is a good fit for the interim worker.
Offer: If both the company and the interim worker are interested in making the transition, the company will make a formal offer for the permanent position.
Negotiations: The interim worker and the company may engage in negotiations regarding the terms and conditions of the permanent position.
Once these steps have been completed, the interim worker can be converted to a permanent finance worker. The conversion process can be a positive outcome for both the company and the interim worker, as it allows the company to retain a skilled and experienced finance professional, and provides the interim worker with the security of a permanent position.