Howdy! New to the forum

[Star69]

Hi all,

I have decided to join the forum as I am in a little bit of a quandary and would appreciate it if there are others that are in / have been in a similar situation that may be able to offer some sage advice.

Due to the risk of potential wrath (I am a Project Manager!! ) from more seasoned members, I have been having a rummage through the posts, but haven't managed to fall on my specific question. It probably has been asked before, so sincere apologies for being stupid enough not to find it in advance if it's there!

I am on my second contract, which has been extended many times luckily for me. I am about to hit the 2 year mark though and thoughts are turning to IR35, as I think it may be time to leave. I work from 3 sites for the client, so have been claiming travel expenses, which I know will need to cease at the 2 year Mark. My client wants to keep me, but I am not so sure this is wise. Having said that, it's work and the Market is not great at the moment. If anyone can help with their opinions as to whether I should leave or not, it would be much appreciated. I have tried talking to other contractors at my site, but no one has lasted anywhere for 2 years it seems...... Hmmmmmmm

Thank you in advance for your assistance

[oracleslave]

From the information provided, I see no reason why you should leave provided the lack of reimbursement of expenses does not make the contract prohibitive to continue. A fear of IR35 would not make me leave a contract once I had been in it for 2 years already as I fail to see the connection between this new found fear and having been onsite for 2 years. I'd suggest you do some more research on IR35 before you jack in a perfectly good contract.

[northernladuk]

IR35 has bugger all to do with being there for 2 years. That is the 24 month rule you are about to fall foul of and I have some bad news for you on that one.

IR35 is around your status and how you are tasked. You are inside if you are deemed a hidden permie, outside if you can show you are an independant business. You should had your contracts already checked by someone such as QDOS before you started as it means you get taxed differently.

24 Month rule is about being in a location for 2 years after which it becomes deemed as your permanent place of work and you cannot claim mileage or subsistence. Now the bit you probably don't know is the you must stop claiming travel from the moment you know you are going to be there over 24 months. So.. You have been at client 18 months, you get a 6 month extension that takes you even 1 day over 2 years you cannot claim ANY mileage or subsistence from the minute you are offered the gig and know you will go over.

The important question is where are these sites? Within a smallish geographical location or up and down the country. If you are at site for les that 40% of the time the clock doesn't start.

Read up on both IR35 and 24 months in the guides on the right hand side.

[northernladuk]

Oh and neither of them are a reason to jack a good gig in unless the rate is pants or there is a lot of travel / staying over which I presume there isn't if you have been there 2 years.

[oracleslave]

Oh and neither of them are a reason to jack a good gig in unless the rate is pants or there is a lot of travel / staying over which I presume there isn't if you have been there 2 years.

So basically, WIS.

[Star69]

Hi,

Fab, thank you.

I was aware about the 24 month rule that states as soon as you as you know you'll go over, you have to stop claiming. My extensions are 3 months thankfully and have not claimed since I was renewed in November.

The bit I was unsure of regarding IR35 was the fact that after 24 months, my place of work was deemed to be permanent and so I'd been trying to research whether this too would be a negative.

The offices are pretty spread out, approx 100 miles apart, so yes I do stay down in the week when I need to. 1 site is 3 days per week, another for 1 day and usually from my own office on a Friday.

I only ever had my contract checked out by the ex HMRC employees that work for my accountant. I made some changes, but suspect it may not be bullet proof.

I must say, I find IR35 pretty heavy going and everyone
seems to have a different interpretation. I shall continue to
research the topic though. I usually end up with more questions and a mild attack of indigestion!

Once again, many thanks for your help

[northernladuk]

Hi,

Fab, thank you.

I was aware about the 24 month rule that states as soon as you as you know you'll go over, you have to stop claiming. My extensions are 3 months thankfully and have not claimed since I was renewed in November.

The bit I was unsure of regarding IR35 was the fact that after 24 months, my place of work was deemed to be permanent and so I'd been trying to research whether this too would be a negative.

Your workplace being deemed permenant isn't anything to do with IR35 so don't mix them up.

The offices are pretty spread out, approx 100 miles apart, so yes I do stay down in the week when I need to. 1 site is 3 days per week, another for 1 day and usually from my own office on a Friday.

Pretty complex then but if you can demostrate you are not in any one place for more than 40% of the time you are not caught by the 24 month rule. I would have a word in the clients shell like and see if you can engineer that between the three sites.

I only ever had my contract checked out by the ex HMRC employees that work for my accountant. I made some changes, but suspect it may not be bullet proof.

QDOS do PI/PL insurance for about £240 which is worth getting (helps with IR35 as you are taking responsibility for your mistakes) and they do 3 free reviws a year. The other Baur and Cotterall (can never remember spelling). Kate Coterall posts on here from time to time.

I must say, I find IR35 pretty heavy going and everyone
seems to have a different interpretation. I shall continue to
research the topic though. I usually end up with more questions and a mild attack of indigestion!

It is an incredible mess with no one really knowing but HMRC always on the attack. It would be worth you looking at joining the PCG as well as they do some protection with your membership and a lot of work fighting for IR35. Good guides and info as well. IR35 is discussed on here ad nauseum and we still can't agree on some of the finer points.

Once again, many thanks for your help

[Star69]

My PL insurance is up for renewal, so I shall check them out. Cheapest I found this time was £280.

You're like having my own personal Wikipedia.....except you're not in a black out and I suspect not full of nuggets of utter silliness!

I am pretty sure that I have had enough at this place though and as I have an interview next week, I may pursue a new contract vigorously instead. Leaves me time to take a couple of courses I want and to swot up on rules and regs
etc...

I went mad the first year and saved up a nice pot, so no worries on that front. I have been lucky and I accept that, but it will do my contract career good to move around a bit more too.

Always difficult leaving what seems on the surface to be a good "gig" as you put it, but with new folk only lasting 2 months before leaving out of desperation, I think the time is right. Just needed to be sure I was making the right decision for the right reason and not throwing the baby out with the bath water... Think the baby got out already and sneakily left a doll in it's wake.

Cheers!

[TheFaQQer]

You're like having my own personal Wikipedia.....except you're not in a black out and I suspect not full of nuggets of utter silliness!

Anyone who reads CUK and believes that is a fool or a troll.

Welcome!

[Star69]

Anyone who reads CUK and believes that is a fool or a troll.

Welcome!

Thanks!

From the Foolish Troll!