Switching from outside IR35 to either Umbrella or Employed Consultant

[jpowell79]

I've been working for a large, very well-known company for a good few years outside IR35, but we've now been told the company don't want the headache going into 2020, so we have two options to choose from if we want to stay.

Umbrella or Employed Consultant

Neither of these are particularly appealing, however the job is practically on my doorstep (7-minute commute on a bad day) and the hourly rate for my role isn't any better in London, so makes no sense to look for another role, especially when I factor in additional travel costs and time.

So I'll be sticking around....at least until my mortgage is up for renewal in December 2020 anyways.

So what's the lesser of the two evils?

Umbrella option: I'm being told I need to pick from one of two "approved" umbrellas..... Giant or ContractorUmbrella
Employed Consultant: Only one option - Ajilon


I have zero experience with working under umbrella or as an employed consultant, so looking for some good reasons to pick one over the other.

thanks guys

[northernladuk]

Read the stickies in the IR35 reform subsection of the accountint/legal part of the forum.

This is being asked almost weekly nowadays even though it's covered in the stickies.

You're not worried about retrospective action now it's been proven your role is really inside and has been all along then?

[malvolio]

A few thoughts arise

Ajilon is not a consultancy, they are an employement business. All the client is saying is that you come in via them on Ajilon's payroll. So just like an umbrella really...

If you've been there "years", prsumably they need your work. So why aren't they offering you a permanent position? Perhaps they don't want the overheads of having an employee...

If you are demonstrably outside IR35 now (as opposed to just pretending you are) why aren't you asking for justification from your client about why they are now saying they will treat you as inside...?

I understand why you would want to stay, but equally you have things to bargain with. Also, unless you can get an outside IR35 new contract (possibly unlikely if you are in some major markets) then expenses don't count anyway.

[PCTNN]

You're not worried about retrospective action now it's been proven your role is really inside and has been all along then?

I hope he isn't worried and I hope he'll get investigated.

Yes, I'm in a bad mood today

[Paralytic]

Read the stickies in the IR35 reform subsection of the accountint/legal part of the forum.

This is being asked almost weekly nowadays even though it's covered in the stickies.

You're not worried about retrospective action now it's been proven your role is really inside and has been all along then?

Please stop misleading people. The post indicated no such thing.

[WTFH]

...

So I'll be sticking around....at least until my mortgage is up for renewal in December 2020 anyways.
...

We don't know the size of your mortgage, the type, the LTV, the rate, how much you have set aside to reduce it, etc. but if this is your major reason for staying on, then you should consider:

1. What is the best way for me to save the most money over the next 12 months to reduce the size of the next mortgage
2. Which option will give me better rates/more options for a new mortgage.

And you might find the answer to the first is different to the second, in which case you'll need to consider which is the more important factor - and whether you're thinking short term or long term, etc.

[northernladuk]

Please stop misleading people. The post indicated no such thing.

But maybe it will get him to sit up and take notice of what is going on rather than drifting around oblivious, which is, arguably, why we are where we are.

His post didn't say anything the other way either so he needs to take se notice.

[psychocandy]

I was in the same position two years ago contracting with a consultancy that was on site at public sector. Very concerned about retrospective. Surely, HMRC have now possibly got a declaration in writing from the client saying INSIDE IR35. Its not going to be hard for them to go to you and say "Same role isnt it? Client now tells us its INSIDE but you've told us previously its OUTSIDE". How do you defend that?

As for the going umbrella thing. I was lucky. I left the above mentioned client and started a new one in the PS. They'd got stung because contractors left and hiked their rates 35%.

Even after all the tax and NI (including employer NI FFS) my take home is same as before. Bear in mind it needed that 35% hike!!!
You're lucky its local because, obviously, no more petrol/hotel expenses. Same with me - 13 miles so no biggie.

I closed down my limited a few months later to save on accountant costs. Easy enough to resurrect apparently. So now I've got no hassles, weekly payment, no IR35 worries. Pay shedloads of tax but take home is the same.