From Permanent to Contractor for the same company IR35 From Permanent to Contractor for the same company IR35 - Page 2
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  1. #11

    Nervous Newbie


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    Thank you everybody for your help I think that the best option is to move to another company...

  2. #12

    Contractor Among Contractors


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    Quote Originally Posted by duckevlc View Post
    Thank you everybody for your help I think that the best option is to move to another company...
    No, the best option is to take this contract, treat it as inside IR35 and use an umbrella, until you get a feel for the contractor life. Bonus if you get them to agree to 2 weeks notice.

    Then start looking for a new contract, just don't expect to find one in a heartbeat.

  3. #13

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    Quote Originally Posted by sal View Post
    No, the best option is to take this contract, treat it as inside IR35 and use an umbrella, until you get a feel for the contractor life. Bonus if you get them to agree to 2 weeks notice.
    That might be the best option. But I doubt OP is really going to get a feel for the contractor life in an IR35 role with his former employer. So if you are advocating umbrella until he gets used to being a contractor, it's a waste. He's not going to get used to it until he goes elsewhere. And if he does this for 3-6 months inside IR35 and then goes elsewhere and gets an outside IR35 contract, he'll be far better off financially for having gone Ltd from the start.

    Umbrella is a good option for those who don't know how to run a Ltd and don't want to be bothered to learn, and are willing to pay for the privilege of not learning. It's also a good option for those who are just starting and want to find out what contracting is like before they decide to take the time to learn to run a Ltd, which is clearly what you were thinking. But if he's staying put, he isn't learning what contracting is like.

    OP, the best option for you depends on many factors, not the least is whether you are wanting to dip your toes in the water of contracting or plunge in all the way. It may depend on your skills and experience and contacts. It may depend on your relationship with your current employer, and whether you can parlay that into some kind of part-time contract, maybe somewhere between 5-20 hours a month, even if you go elsewhere, to answer questions / support stuff you've done for them in the past.

    There are many, many possible permutations of the way you could take this. None of us have enough facts to advise you much, we could talk about pros and cons of different approaches but you'd have to put a lot more information out before we could really make any fair analysis of which paths are good or bad.

  4. #14

    I live on CUK

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    Do it as a fixed price rather than time and materials. Commercially risky.

    Or get IR35 insurance and a good contact template and statement of work and make sure your working practices reflect the contract.

    People get excited that Friday to Monday was a key driver for IR35. But it does not follow that you are automatically inside IR35. The key risks are an increased risk of investigation (a guess, I have no data to back this up) and you and your current employer not making the changes to your working practices and status as part and parcel of the company. You need to educate yourself and your current employer to change mindsets.
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  5. #15

    More time posting than coding


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    I think all that has been said above is full of good sense.

    Push to shove, the chances of your being investigated are slim, so it could be up to you how you want to position yourself. Yes, IR35 was set up in part to cover the Friday to Monday issue, but it is also so complex that an argument could always be had further down the line.

    IR35 insurance would cover.

    And, I agree that you should go into this contract you are speaking of. Good luck.

  6. #16

    Should post faster


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    Be careful.

    I think that IR35 investigations are about 1 in 1,000 (got that figure from this site somewhere), however HMRC will investigate if someone specifically is reported to them.
    If you've ever ticked someone off at your current company, or there might just be a vindictive wolf in sheep's clothing, then they might report you and your chances of being investigated would be much higher.

    Also, hate to ask this: Are you sure they don't want to just get rid of you and save on the redundancy? You resign, take a contract, they terminate after one hour and save serious £££££s on redundancy payments. Trebles all round for the Management!

  7. #17

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    Hadn't considered the redundancy implications.

    If one is being made redundant, then I am guessing the resolution of that contract should be covered first. And thus a redundancy payment would be made. Is there a legal minimum to be made in respect of?

    Nothing was mentioned in the first post to suggest contracting was in lieu of a redundancy payment...?

  8. #18

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    Quote Originally Posted by simes View Post
    Hadn't considered the redundancy implications.

    If one is being made redundant, then I am guessing the resolution of that contract should be covered first. And thus a redundancy payment would be made. Is there a legal minimum to be made in respect of?

    Nothing was mentioned in the first post to suggest contracting was in lieu of a redundancy payment...?
    There's probably nothing in it. I've possibly set a hare running that I shouldn't have.
    You've only been there two years so I wouldn't imagine the redundancy would be more than a couple of months' pay, tops.
    The key point is that you won't get any redundancy - you will have to resign. If you'd been there for a decade or more it would be a concern, but after just two years...forget it.

  9. #19

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    ...also if you resign you can be barred from income support for 26 weeks. Not a good position to be in if the contract falls through for whatever reason.

    </psychocandy>
    And the lord said unto John; "come forth and receive eternal life." But John came fifth and won a toaster.

  10. #20

    Contractor Among Contractors


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    Go and work at another company then come back. You can then get the contract written so it is definitely IR35 fine.

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