M4 Managed Services International

**eek** · 25 July 2016, 17:09

Originally posted by SouthernManc78 View Post

Has anyone got any experience with them? I'm talking to them about a role and already they've mentioned treating their contractors as being inside IR35 (their words) as they expect them to represent their company and have business cards and such like.

Why are you willingly going to pretend to work for someone you don't work for....

**LondonManc** · 25 July 2016, 17:12

Originally posted by eek View Post

Why are you willingly going to pretend to work for someone you don't work for....

Money and lots of it.

Expenses and day rate are the key negotiations on this one. Either they pick up the expenses tab or you factor it into the day rate. As they understand IR35, they should understand your day rate being inflated to larger than sascretin's ego or MF's derriere.

**SouthernManc78** · 25 July 2016, 17:14

They are a managed services provider and don't want their client wanting them knowing their 'staff' are actually contractors I guess.

If the rate is high enough to make being inside IR35 worthwhile then its revenue so not discounting it.

Although from my initial searching for previous posts the implications of being inside IR35 after April and the changes to T&S are setting off alarm bells in my head already

**LondonManc** · 25 July 2016, 17:15

Originally posted by SouthernManc78 View Post

They are a managed services provider and don't want their client wanting them knowing their 'staff' are actually contractors I guess.

If the rate is high enough to make being inside IR35 worthwhile then its revenue so not discounting it.

Although from my initial searching for previous posts the implications of being inside IR35 after April and the changes to T&S are setting off alarm bells in my head already

Day rate to cover it, as I said. Add £50 on to the cost of your daily train fare, plus £200 on to your normal day rate and you're getting there.

**LondonManc** · 25 July 2016, 17:44

Best way to think of it, for me, would be that I'm not that keen on it, but for the right price, I'd do it. Remember that it's only that contract that is inside IR35. Once you're getting near to being offered it, have a chat with your accountant about the best way to handle it, especially if you're mid year and you've been outside IR35 with your first contract of the financial year.

**SouthernManc78** · 25 July 2016, 20:30

I've been doing some more research on it tonight and I think because of the way I operate my ltd co it's not going to work for me.

I have two directors in my co and both receive a low salary with dividends and from what I understand from being inside IR35 it would mean no dividends for either of us (not sure about the salary bit though, whether we would both need to take high salary or just one takes the hit).

Plus we have a lot of regular expenses through the company (company cars etc).

If it gets to the stage where they make an offer I'll run it by my accountant to be sure but already I'm thinking it wouldn't be viable for me inside IR35

**cojak** · 25 July 2016, 21:21

Originally posted by LondonManc View Post

Money and lots of it.

Expenses and day rate are the key negotiations on this one. Either they pick up the expenses tab or you factor it into the day rate. As they understand IR35, they should understand your day rate being inflated to larger than sascretin's ego or MF's derriere.

Absolutely this.

**SouthernManc78** · 26 July 2016, 12:41

Thanks I'll make sure to try and push the rate up [emoji12]

**SimonMac** · 26 July 2016, 13:29

Originally posted by SouthernManc78 View Post

I've been doing some more research on it tonight and I think because of the way I operate my ltd co it's not going to work for me.

I have two directors in my co and both receive a low salary with dividends and from what I understand from being inside IR35 it would mean no dividends for either of us (not sure about the salary bit though, whether we would both need to take high salary or just one takes the hit).

Plus we have a lot of regular expenses through the company (company cars etc).

If it gets to the stage where they make an offer I'll run it by my accountant to be sure but already I'm thinking it wouldn't be viable for me inside IR35

Dividends come after operating expenses, which inside IR35 means all earnings minus pension is salary. If there is still money in the warchest then the other director can take a salary, dividends for both of you should be irrelevant as long as the company as the money to pay them from profit

M4 Managed Services International