Moving from Outside to Inside?

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Hi
I am not sure if this has been answered elsewhere, I did search, but couldn't find it - if it has been answered, happy for any links to show where.

My background, I have been contracting for just over 3 years and have had 2 contracts both outside of ir35. Both had been QDOS assessed and I had done my own checks on the ground through confirmation of arrangement.

Now, I've landed a new opportunity that I'm really interested in. But the initial contract from the agency was INSIDE IR35 (this only for 8wks contract but its doing something that opens more doors for me). Since the initial contract, it was revised via help of QDOS, where they want me for specifically a certain piece of regulatory knowledge and experience I have, which they do not have, and this is my USP of my contracting business. I am providing them outside ir35 services, but the end client doesn't understand ir35 and they too big for me and the agency to challenge.

Whilst the discussions are ongoing to get it the contract OUTSIDE IR35 via the agency and end client agreeing, I feel its a bit of drag, the end client may just say no - take it or leave it, but given the opportunity it presents, I was considering biting the bullet and just doing the contract as INSIDE IR35. (its only 8wks after all)

However, my questions:

1) has anyone been in this situation or what would they advise I do?

2) Can anyone tell me what are implications of doing a mixture of inside and outside ir35 contracts is?

3) Given the new ir35 rules from next year, what are implications if I now continue to take all future roles inside ir35, would this put in doubt my company overall and the initial outside ir35 contracts?. (I'm setup as LTD, and maybe I just run inside ie35 contacts via there rather than a umbrella company)

With regards to point (3), the way I'm current lying seeing it is; I still get paid more as a contractor inside ir35 than I would as a perm (assuming I can bake in %increase to offset some tax costs), but also I'd avoid internal politics, I can work for a variety of clients, I can work durations more suitable to my lifestyle. Sure, I get that I would miss the company tax benefits/div drawdown, but I'm a part-time carer, so the flexibility suits and the work keeps being interesting whilst I move around, and when I can take a permy jobs that supports my home responsibilities, I'll have a vast and varied amount of experience in the domain I predominantly move around in.

What are you thoughts ?

[northernladuk]

1) has anyone been in this situation or what would they advise I do?

Not for such a short piece of work. If it opens doors I'd be willing to swallow this but the bigger question what happens if they like you and more work comes along? I've gone inside for the right money. It was PS and the rate was bumped up so not far off the same money as outside. Was only a short gig so just put it down to being a not the best paid gig. We all have them. Add 50% to your standard rate for the short term piece of work and the fact it's inside and see what happens.

2) Can anyone tell me what are implications of doing a mixture of inside and outside ir35 contracts is?

None. IR35 is on a contract by contract basis. Nothing wrong with one being inside and one outside. That's how the legislation is supposed to work.

3) Given the new ir35 rules from next year, what are implications if I now continue to take all future roles inside ir35, would this put in doubt my company overall and the initial outside ir35 contracts?. (I'm setup as LTD, and maybe I just run inside ie35 contacts via there rather than a umbrella company)

No. See point 2. Taking an outside one pre April 2020 and then moving inside at April with the same gig isn't a good idea but the individual status of each contract is irrelevant to other gigs. IR35 has nothing to do with your company overall.

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Thank you

[Hobosapien]

One thing I'd add is that if considering a future of both inside and outside IR35 contracts, look into the impact of putting the inside contracts through your Ltd in terms of accountancy.

It complicates things with the remuneration your Ltd receives from inside contracts being net of employee taxes, so needs careful handling by an accountant to ensure you don't pay additional taxes on top that are not relevant to that income stream but are still relevant to other non-inside income streams.

I chose to use an umbrella for the one inside contract (public sector) I've had so far, to keep things separate and easier to manage. Though that brought it's own complications with PAYE, being employed by both Ltd and umbrella, so I stopped being an employee of my Ltd to simplify that but didn't close the PAYE scheme at the time on advice of my accountant as it's easier to reverse than re-starting the scheme.

Talk to your accountant to get a full picture of the implications and the best way forward for you.