Switch to increased day rate within PS IR35 or leave? Switch to increased day rate within PS IR35 or leave?
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  1. #1

    Still gathering requirements...

    BradMcA has no reputation


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    Default Switch to increased day rate within PS IR35 or leave?

    If your day rate was £300, working in the public sector happily satisfied your Ir35 status is outside, contracted for two years up until 31/march this year with all invoices and payments made before 6/April.

    But the client you do project work for would pay £400 a day to keep you for 2+ more months... Almost certainly putting you within IR35 due to their lack of understanding of the issues would you renew or leave?
    Last edited by BradMcA; 2nd March 2017 at 06:46. Reason: Autocorrect with Gboard is a pain

  2. #2

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    PurpleGorilla - scorchio!

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    Default Switch to increased day rate within PS IR35 or leave?

    For two months! Leave!

  3. #3

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    PurpleGorilla - scorchio!

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    Default Switch to increased day rate within PS IR35 or leave?

    Quote Originally Posted by PurpleGorilla View Post
    For two months! Leave!
    FWIW I am charging £500/d upwards in private sector.

    Wouldn't do PS for less than £750/d.
    Last edited by PurpleGorilla; 2nd March 2017 at 07:54.

  4. #4

    Fingers like lightning

    BigRed is a permanent contractor


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    If you are inside you need at least 35% +expenses, I think mine worked out at nearly 50%. This will then leave you open to HMRC backtracking on existing service, so I would still be out.

  5. #5

    bored now

    eek is a fount of knowledge

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    Quote Originally Posted by PurpleGorilla View Post
    For two months! Leave!
    +1 the risk is that HMRC look at your new inside IR35 contract and decide that

    1) Clearly the previous contracts were inside IR35 (however the contractor ignored facts and decided it was outside)
    1b) let's issue a bill on the basis that all contracts with that client / agency were inside IR35 and see what happens.

    And that is why we (and virtually everyone else)who has read and understood the law) recommends leaving asap and ensuring all invoices are paid by the end of this tax year (5/4/17)..

    2 months max additional money isn't worth a 2 year tax bill...


    Things I will add as its not clear from your post:-

    We suspect any retrospective bill would be based on the historic payments through your current agency - new agency = new contract = probably safety.
    If you have been working there for nearly 2 years you cannot claim expenses once you know that contract will go over 24 months.
    Last edited by eek; 2nd March 2017 at 07:55.
    merely at clientco for the entertainment

  6. #6

    Ddraig Goch

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    Quote Originally Posted by eek View Post
    +1 the risk is that HMRC look at your new inside IR35 contract and decide that

    1) Clearly the previous contracts were inside IR35 (however the contractor ignored facts and decided it was outside)
    1b) let's issue a bill on the basis that all contracts with that client / agency were inside IR35 and see what happens.

    And that is why we (and virtually everyone else)who has read and understood the law) recommends leaving asap and ensuring all invoices are paid by the end of this tax year (5/4/17)..

    2 months max additional money isn't worth a 2 year tax bill...


    Things I will add as its not clear from your post:-

    We suspect any retrospective bill would be based on the historic payments through your current agency - new agency = new contract = probably safety.
    If you have been working there for nearly 2 years you cannot claim expenses once you know that contract will go over 24 months.
    Spot on. In OPs case if he/she is considering staying I would definitely be considering QDOS TLC35.

    Whether then having to pay £300+ for 5/6 years afterwards would be worht it (Although its a good thing anyway).

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  7. #7

    More fingers than teeth

    scooterscot is a fount of knowledge

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    Get another job on top of your day job. Two sources of income.

    Goodness, what happened to when contractors were real contractors?
    “We've always defined ourselves by the ability to overcome the impossible. And we count these moments. These moments when we dare to aim higher, to break barriers, to reach for the stars, to make the unknown known. We count these moments as our proudest achievements. But we lost all that. Or perhaps we've just forgotten that we are still pioneers. And we've barely begun. And that our greatest accomplishments cannot be behind us, because our destiny lies above us.”

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    Quote Originally Posted by scooterscot View Post
    Get another job on top of your day job. Two sources of income.

    Goodness, what happened to when contractors were real contractors?
    Was it when they stopped having jobs?

  9. #9

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    Quote Originally Posted by BradMcA View Post
    If your day rate was £300, working in the public sector
    Have you considered alternative and less painful and prolonged forms of suicide? Just wondering.

  10. #10

    More time posting than coding

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    Quote Originally Posted by BradMcA View Post
    If your day rate was £300, working in the public sector happily satisfied your Ir35 status is outside, contracted for two years up until 31/march this year with all invoices and payments made before 6/April.

    But the client you do project work for would pay £400 a day to keep you for 2+ more months... Almost certainly putting you within IR35 due to their lack of understanding of the issues would you renew or leave?
    Leave. Increase isn't enough and the contract length isn't enough. Just not worth the hassle / risk.
    First they ignore you, then they laugh at you, then they fight you, then you win. But Gandhi never had to deal with HMRC

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