Subcontracting advice for a newbie

[inferno]

..

[chrno]

Not an expert ... but IR35 springs to mind ...

[pmeswani]

Hi there,

I have been with my current company for many years and over the last year have become increasingly dispondant with it due to lack of training, lack of promotional opportunities etc. I have been working on a project for the last 3+ years and am based in the client's offices. I have very little contact with my employer. I know of other staff who have become self-employed and worked on projects as an 'independent consultant' to the clients projects, via the company. In otherwords they carry on working for the client and on the same project they always have but as an independent, via the company's contract with the client, doing exactly the same job but getting paid a hell of a lot more.

I understand the relationship risks here but is there anything stopping me from doing this? As far as I'm aware there is nothing in my contract.

Has anyone done this already and if so how did you go about it?

Any advice would be very welcomed.

thanks

Nothing stopping you, but you will be seen as a disguised employee and may be IR35 caught.

It does be the question, If you are not happy with working for them, what will change if you go contracting with them as your client?

[lje]

Your current employer may have an agreement with the client not to let this happen. The only way to know is to ask the client (or your current employer...).

[inferno]

Thanks for your replies. I want the (potential) flexibility to move around in the clients' team without the contraints of my current employment, and be in charge of my own traning requirements. I have a good trusting relationship with the client so will bring this up and test the water.

It's risky as if I bring it to the table with my employer they may not run with it and could sack me, even though I know that my client would support me and want to keep me on the job. Tricky...

[Support Monkey]

you may be able to earn more money however just remember no Holidays no sick pay no christmas bonus and what happens if you get your contract setup and a month from now they turn around and say projects over we don,t need you on Monday, they do not have to find you another project to do like they would if your permanent, no redundancy no nothing, your on the bench with no money and no idea where the next contract is coming from in the worst downturn this century,

I would never say do not go contracting however "i can earn more money" is no basis for throwing in a permanet position not in the current climate, you need to investigate all the options first before you take the plunge

[inferno]

Thanks for the replies. I am hoping that I will have more flexibility if contracting via my current company, and also have charge of my own training needs - its the company I'm not happy with, not the work. I have a trusting relationship with my client so will bring it up.

I guess my concern is that if I tell my company that I intend to do this then will fire me, even if i do have the client's approval. Tricky....

Support Monkey I understand what you're saying but even of the project was shelved in a month's time I would leave anyway as I couldn't commute to the base offices, and would rather shoot my own toes off than go back there anyway!

[inferno]

Not an expert ... but IR35 springs to mind ...

I know i'll probably be caught by IR35, but even so I will probably make more than I am now. If I'm not caught then that's all well and good, too!

[TheCyclingProgrammer]

Clearly this is the kind of thing IR35 was designed to prevent and if your working relationship is effectively the same even though your contractual relationship isn't, then you will be caught by IR35 although that's not to say you may not still benefit financially.

However it's not a given that you'll automatically fall under IR35 simply because you continue working with your ex-employer but in a client/consultant relationship. The same tests of any contract/working relationship for IR35 apply.

EDIT: re-read the original post and missed the link between you and the client is via your current employer, not that the client is your employer. In that case, forgetting IR35 completely for the moment, I'd be surprised if there wasn't either:

a) A non-solicitation clause in the contract between your employer and their client, or
b) A non-compete clause in your employment contract, or
c) Both of the above, both of which would make it difficult for you to engage with your employer's client as an independent consultant.

What is your employer? Is it a consultancy? An agency? An umbrella? Have you looked at your employment contract? Even if there isn't a non-compete clause, I'd be surprised if the client co. would want to risk pissing off your employers or open themselves up to possible legal action for something that would seem to only benefit you.