New Contractor IR35

[ENG1]

Hi all, apologies as I know this has possibly been asked many times but here goes. I am a design engineer in the construction industry. It is common for people like myself to work either as employees or as contractors. I have always been permanent but have decided to go contract and have set up a limited company. I am completely new to all this and have an accountant.

I handed in my notice without any work lined up as I have a long notice period to negotiate. My employer use contractors all the time and asked me to stay on for a few months as a contractor. The contract and the working arrangements are undoubtedly outside IR35 but should I be particularly concerned about my own IR35 status under this arrangement, even if I'm only here for a short period?

[GazCol]

Hi all, apologies as I know this has possibly been asked many times but here goes. I am a design engineer in the construction industry. It is common for people like myself to work either as employees or as contractors. I have always been permanent but have decided to go contract and have set up a limited company. I am completely new to all this and have an accountant.

I handed in my notice without any work lined up as I have a long notice period to negotiate. My employer use contractors all the time and asked me to stay on for a few months as a contractor. The contract and the working arrangements are undoubtedly outside IR35 but should I be particularly concerned about my own IR35 status under this arrangement, even if I'm only here for a short period?

Yes - although it's not cast iron that remaining at the same employer whilst moving from PAYE to Ltd is an indication of false employment, staying on and doing exactly the same role is.

IR35 was set-up to prevent this, your current employer is looking to take advantage of you, whilst leaving you liable for the extra NI/tax that will be due if/when you're caught. I'd take offence and use this offer as a means of negotiating a sharp exit.

[SpontaneousOrder]

Yes - although it's not cast iron that remaining at the same employer whilst moving from PAYE to Ltd is an indication of false employment, staying on and doing exactly the same role is.

IR35 was set-up to prevent this, your current employer is looking to take advantage of you, whilst leaving you liable for the extra NI/tax that will be due if/when you're caught. I'd take offence and use this offer as a means of negotiating a sharp exit.

Friday-Monday?

[GazCol]

Friday-Monday?

Friday-Monday.

[TheFaQQer]

The contract and the working arrangements are undoubtedly outside IR35 but should I be particularly concerned about my own IR35 status under this arrangement, even if I'm only here for a short period?

If the contract and the working conditions are undoubtedly outside IR35, then why would you volunteer to pay more tax by declaring yourself inside?

[v8gaz]

If the contract and the working conditions are undoubtedly outside IR35, then why would you volunteer to pay more tax by declaring yourself inside?

Because as a F-M contractor, he's clearly inside.

[northernladuk]

Some reading for the OP...

IR35 Advice for Contractors - IR35 Guide

Contractors' Questions: Is contracting for my ex-employer inside IR35? :: Contractor UK

[TheFaQQer]

Because as a F-M contractor, he's clearly inside.

So the question is, what makes the OP think that the contract and working practices are undoubtedly outside IR35?

[northernladuk]

So the question is, what makes the OP think that the contract and working practices are undoubtedly outside IR35?

They probably are to a new contractor coming in fresh. It's him that breaks it.

[kal]

My previous employer asked the same of me. There was no chance I was ever going to accept as one of my reasons for leaving was that I was fed up of the place. Also why start your contracting career with a bang to rights Inside IR35 contract, you may as well go with a brolly if you decide to stay on.