So just to give everyone here a bit of an update, spoke in more detail to the consultancy on this, so more understanding of the model on this:
- Before April, they're suggesting bringing me on standard an outside IR35 contract, timesheets and all.
- Post April, they're hoping/expecting Big Bank to move to a more SoW approach - I'd work on site as I feel is needed, would be facing off into a key Big Bank manager routinely, however I'd be getting paid on completion of deliveries in a SoW (completed task x, get paid y, etc..). Also there'd be a small company manager, along with the Big Bank to work through timescales for delivery, reviewing achievements in line with pre-agreement timescales, etc.
Here's the kicker though.. they're hoping the Big Bank agrees to the SoW approach (and some of the more immediate people involved in the project are bought into it), but they're not sure how long it will take for the Bank (and, in their thinking, even the broader market), to move to this approach. Bit of uncertainty here.
- However, they're so confident that the Big Bank will move to this approach eventually, even if they haven't moved to that approach in April, they'd hire me as a permanent employee for 6 months (acdtual perm with the small company, not umbrella), paying me a salary equivalent to my day rate on an annualised basis, less statutory holiday/benefit entitlement, though not employer NI... and then move me off that perm structure if/when the client agrees to the SoW approach.
When I first heard that, I figured it didn't sound too bad actually... doing the proposed job as an actual perm employed by the bank would probably pay about half of my day rate annualised, and the client site isn't that expensive/difficult to get to as needed.
However, it now occurs to me that working on an outside basis for the small consultancy, then becoming a perm employee of the consultancy would put me at risk of an investigation for HMRC... maybe only for 4-6 weeks of outside IR35 earnings, but not sure I'd want to attract the spotlight.
Anyway, thought I'd share and get people's thoughts on this... may be a model some of you might be approached about as well. Evidently this consultancy is working with two of the big banks of adopting this model.
We'll see..
- Before April, they're suggesting bringing me on standard an outside IR35 contract, timesheets and all.
- Post April, they're hoping/expecting Big Bank to move to a more SoW approach - I'd work on site as I feel is needed, would be facing off into a key Big Bank manager routinely, however I'd be getting paid on completion of deliveries in a SoW (completed task x, get paid y, etc..). Also there'd be a small company manager, along with the Big Bank to work through timescales for delivery, reviewing achievements in line with pre-agreement timescales, etc.
Here's the kicker though.. they're hoping the Big Bank agrees to the SoW approach (and some of the more immediate people involved in the project are bought into it), but they're not sure how long it will take for the Bank (and, in their thinking, even the broader market), to move to this approach. Bit of uncertainty here.
- However, they're so confident that the Big Bank will move to this approach eventually, even if they haven't moved to that approach in April, they'd hire me as a permanent employee for 6 months (acdtual perm with the small company, not umbrella), paying me a salary equivalent to my day rate on an annualised basis, less statutory holiday/benefit entitlement, though not employer NI... and then move me off that perm structure if/when the client agrees to the SoW approach.
When I first heard that, I figured it didn't sound too bad actually... doing the proposed job as an actual perm employed by the bank would probably pay about half of my day rate annualised, and the client site isn't that expensive/difficult to get to as needed.
However, it now occurs to me that working on an outside basis for the small consultancy, then becoming a perm employee of the consultancy would put me at risk of an investigation for HMRC... maybe only for 4-6 weeks of outside IR35 earnings, but not sure I'd want to attract the spotlight.
Anyway, thought I'd share and get people's thoughts on this... may be a model some of you might be approached about as well. Evidently this consultancy is working with two of the big banks of adopting this model.
We'll see..
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