Bank A Parmanent 5 year, Bank B Permanent for 1.5 years, Going back to A as contract

[nsh21]

Hi All,

As title says, I used to work for bank A for 5 year as permie and left them last year June 2013. Moved to bank B and working since then (~1+ years).

I am now looking for contract options and may be a chance to go back to bank A in same area as contractor.

I have read the forum and have found mixed information on whether it will be inside IR35 or not. I am planning to setup a LTD company and will be only Director. I do have option to make my wife as Director also if that makes a diff.

I am aware that contract will be a standard contract provided by most banks and will have usual clauses to keep it outside IR35 but I want experts to comment and anyone who has been in similar situation.

N

[Jessica@WhiteFieldTax]

The previous employment history is largely irrelevant.

The devil will be in the detail of your new contract, more so working arrangements than written clauses.

You need a contract review to answer the questions.

[TheFaQQer]

The previous employment history is largely irrelevant.

The devil will be in the detail of your new contract, more so working arrangements than written clauses.

You need a contract review to answer the questions.

A contract review and a working practices review.

[TheFaQQer]

I have read the forum and have found mixed information on whether it will be inside IR35 or not. I am planning to setup a LTD company and will be only Director. I do have option to make my wife as Director also if that makes a diff.

Based on the research you have done, what makes you think that the status of your wife as a director or not would have any implications for IR35?

[northernladuk]

Based on the research you have done, what makes you think that the status of your wife as a director or not would have any implications for IR35?

A little knowledge is indeed a dangerous thing....

I am aware that contract will be a standard contract provided by most banks and will have usual clauses to keep it outside IR35 but I want experts to comment and anyone who has been in similar situation.

This is kind of incorrect. The client doesn't give a stuff about your IR35 status. They provide a contract that covers most aspects of a B2B relationship. IR35 exists to try and dispute the B2B relationship of a contractor. The contracts may be IR35 friendly but the clients do not put them in to keep it outside. It's up to you to make sure it is. Moreover the working practices trump the contract so need to be very mindful of that.

If you want experts comment speak to QDOS or B&C as well.

[nsh21]

A little knowledge is indeed a dangerous thing....



If you want experts comment speak to QDOS or B&C as well.

Thanks for responses. Indeed little knowledge is dangerous and hence I seek expert views. About wife, I read in one of the gudes that single director with small salary and little expenses is a give away sign. I must have misunderstood.

I will def get review done once I have the contract. I am asking all these to decide whether or not its even worth it based on rate expectation and my current take home.

So it looks like it may not be a case of straight inside ir35 and I'd contract and working arrangement are done properly its not likely to be an issue ? Did I get it right ?

[LisaContractorUmbrella]

Thanks for responses. Indeed little knowledge is dangerous and hence I seek expert views. About wife, I read in one of the gudes that single director with small salary and little expenses is a give away sign. I must have misunderstood.

I will def get review done once I have the contract. I am asking all these to decide whether or not its even worth it based on rate expectation and my current take home.

So it looks like it may not be a case of straight inside ir35 and I'd contract and working arrangement are done properly its not likely to be an issue ? Did I get it right ?

Have a read of one of the guides to IR35 as I think this will help your understanding. You can have what you like written in a contract but it will make no difference to IR35 if it is not reflective of your working practices. Probably the simplest way to think about it is - will you be doing a role which is the same or similar to that of a permanent member of staff? If you answer yes then it really doesn't matter what the contract says - circumstances will put you inside IR35

[nsh21]

Have a read of one of the guides to IR35 as I think this will help your understanding. You can have what you like written in a contract but it will make no difference to IR35 if it is not reflective of your working practices. Probably the simplest way to think about it is - will you be doing a role which is the same or similar to that of a permanent member of staff? If you answer yes then it really doesn't matter what the contract says - circumstances will put you inside IR35

Sure I will read the guide. In my experience of working with contractors, they all do similar roles, use similar working environment EXCEPT they don't get salary and any other benefits as a permie. Also they don't have reviews and appraisals. They dont have line management responsibility ( in some cases they do) Does that mean working practice is different for them?

[LisaContractorUmbrella]

Sure I will read the guide. In my experience of working with contractors, they all do similar roles, use similar working environment EXCEPT they don't get salary and any other benefits as a permie. Also they don't have reviews and appraisals. They dont have line management responsibility ( in some cases they do) Does that mean working practice is different for them?

The salary/benefits are irrelevant to IR35 status. Reviews and appraisals would be of low consideration but, if a contractor were subject to them, it could be considered that they had integrated into the workforce which would count against them. If they have to report to a line manager who, in turn, gives them their work schedule for example then that would count against them as it indicates supervision, direction and control which is fundamental to IR35

[nsh21]

The salary/benefits are irrelevant to IR35 status. Reviews and appraisals would be of low consideration but, if a contractor were subject to them, it could be considered that they had integrated into the workforce which would count against them. If they have to report to a line manager who, in turn, gives them their work schedule for example then that would count against them as it indicates supervision, direction and control which is fundamental to IR35

Thanks a lot. Once I have the contract, will get it reviewed as per the suggestions.