Permie to contract same company

[roach]

Hi,

I have been a permie with the same company for 12 years but I've handed in my notice and so will be finishing at the end of July. There maybe an option available for me to return working on a large migration project but on a contract basis.

Am I right in thinking that if I go with an umbrella company working inside ir35 then there won't be other legal/taxation issues for either me or my employer?

Thanks for any feedback!
roach

[mudskipper]

Hi,

I have been a permie with the same company for 12 years but I've handed in my notice and so will be finishing at the end of July. There maybe an option available for me to return working on a large migration project but on a contract basis.

Am I right in thinking that if I go with an umbrella company working inside ir35 then there won't be other legal/taxation issues for either me or my employer?

Thanks for any feedback!
roach

Yep, IR35 is the major hurdle, but if you accept you're inside, then there shouldn't be any issues.

[northernladuk]

Can it and go contracting properly. If its going to be a long gig you are going to lose more money than if you went LTD at a new client.

[DaveB]

Can it and go contracting properly. If its going to be a long gig you are going to lose more money than if you went LTD at a new client.

Only if there is a gig at a new client on the cards. You should still make more than if you were a permie, and it gets the first contract gig under your belt without any downtime, and makes finding the 2nd gig easier as the pimps will see a contractor and not a disillusioned permie.

[northernladuk]

But he will still be a disillusioned permie.

[CheeseSlice]

it gets the first contract gig under your belt without any downtime, and makes finding the 2nd gig easier as the pimps will see a contractor and not a disillusioned permie.

But its all at the same place.. more than 12 years.
Agents are going to look at that and say, contractor? er.. yeah right.

[roach]

Good points, thanks.

I maybe having an interview at another place but it would mean staying away, but I could go ltd then and stay outside. Thinking this is the best option if I really want to bite the bullet and join you lot.

[Clare@InTouch]

Hi,

I have been a permie with the same company for 12 years but I've handed in my notice and so will be finishing at the end of July. There maybe an option available for me to return working on a large migration project but on a contract basis.

Am I right in thinking that if I go with an umbrella company working inside ir35 then there won't be other legal/taxation issues for either me or my employer?

Thanks for any feedback!
roach

If you go umbrella then IR35 isn't applicable, as all income is salary.

If you set up a limited company you can trade inside IR35 or outside IR35. Declaring yourself inside IR35 means paying 95% of your income as salary so it is still slightly more tax efficient than using an umbrella company, provided it's a long enough contract to cover the fees involved in setting up and running a company.

[TheFaQQer]

If you go umbrella then IR35 isn't applicable, as all income is salary.

If you set up a limited company you can trade inside IR35 or outside IR35. Declaring yourself inside IR35 means paying 95% of your income as salary so it is still slightly more tax efficient than using an umbrella company, provided it's a long enough contract to cover the fees involved in setting up and running a company.

Plus your own company isn't going to do a runner with your money, which umbrellas have a habit of doing.

Plus if you have a disagreement with an agency, you control what action to take rather than needing to persuade an employer that they should take action.

[roach]

What complicates matters is that my boss reckons he will only give me an equivalent rate to what I'm currently on as a permie, even though we've got quite a few contractors here on standard contractor rates! This he says is to prevent opening the flood gates for other permies to follow suit.