Returning as a contractor after voluntary redundancy

[northernladuk]

So not contracting opportunity here then? HR is your best bet then. They should be advising you every step of the way.

[WordIsBond]

If your current company makes you redundant before the take over, you might actually be okay, if it's the new one afterwards, you're prob ir35'd.

Maybe possibly. You are certainly more likely to be investigated if you were a PAYE employee with your current client, so if you never were, you at least might have a better chance of escaping notice.

If you were on site before and now you work from home, that helps, because one of the big questions is, "What changed in your working practices?" WFH instead of on-site makes it easier to argue that they are not controlling how/when/where you work. It's still a tough case to argue unless you can point to a lot of other things that changed, too.

Doing fixed-price jobs would also strengthen your case. That would be an important change in working practice. Plenty of case law suggesting that employees don't bid on fixed price jobs, that's a business-to-business transaction.

When I left employment, I signed three contracts with my former employer. The first was for general services for six months, to ease their transition, same stuff I was doing before (though fewer hours and some things changed), IR35 caught. The other two were for specific, well-defined tasks for which I submitted fixed price bids, and I didn't do all the work myself, either. Easily outside IR35.

The point is that inside or outside is not an all or nothing thing, every contract is evaluated on its own, and you can do contracts for a former employer outside IR35 if they are willing to work with you. So if there are tasks that you can split out as fixed price, and your client is happy for you to do that, you may be generally IR35 caught but be able to do some work outside it.

If you go this route, you'd want formal bid proposals on company letterhead, signed contracts, etc. Fixed bid jobs carry risk, of course. But clients might like you taking that risk from them and pay extra for it, and getting outside IR35 on some of your earnings helps compensate you for that risk, too.

There's some recognition, at least in HMRC guidance, maybe in case law as well, that someone's first contract may be with a former employer. If you just keep renewing with them for the next five years, there's not much you can say -- everything will be seen as IR35 caught. If you move on next year, your contract with them for this year is likely IR35 caught, but you may be able to split some of it off into non-IR35 work. If you do achieve this kind of split, make sure any pension contributions from your company come out of the IR35 revenue.

Take the VR by all means, but don't expect to return to the same employer/client because a) it won't be worth it after deduction of IR35, or b) it won't last very long.

Not sure how we can know this.

I could have continued under IR35 with my former employer for a long time. I have skills and (especially) experience for which they would have been willing to pay, easily enough to justify continuing within IR35. But I wanted to do other things, too. OP may well be in a position where it makes sense for both parties to continue a long time, even with paying him enough inside IR35 to make it well worth it.

[Contreras]

Take the VR by all means, but don't expect to return to the same employer/client because a) it won't be worth it after deduction of IR35, or b) it won't last very long.

Not sure how we can know this.

... OP may well be in a position where it makes sense for both parties to continue a long time, even with paying him enough inside IR35 to make it well worth it.

Yes, perhaps I should have added: based on the info given, at face value, and on balance of probabilities, IMHO.

It could equally be argued that the TUPE guarantees only last for a finite period anyway.

The point about risking tax-free status on the VR stands however.

[WordIsBond]

Yes, perhaps I should have added: based on the info given, at face value, and on balance of probabilities, IMHO.

LOL. There have to be a few more disclaimers we could throw in. I guess because of my personal experience I don't know how strong that balance of probabilities is, but admittedly my experience is, actually, only mine.

The point about risking tax-free status on the VR stands however.

I wouldn't know enough on this to either question or confirm it, but I'd certainly be taking advice on it if I were the OP, so hopefully he appreciates you raising the issue. You'd think the client would be red-flagging it for that reason, so if they aren't there may be factors here we're not getting. They'd have potential tax liabilities as well, wouldn't they?

[LondonManc]

If it's a TUPE situations then surely you're looking at maintaining perm status and the trimmings you're currently furnished with?

[VectraMan]

Maybe possibly. You are certainly more likely to be investigated if you were a PAYE employee with your current client

How will they know? You don't have to inform anyone who your clients are, so it's only if you get investigated that they'll find out.

[WordIsBond]

How will they know? You don't have to inform anyone who your clients are, so it's only if you get investigated that they'll find out.

Read somewhere that some investigations start from the client side. If going through client records they find a contractor who was an employee, it gets flagged for IR35 investigation and they go after him.

[Gomez]

If it's a TUPE situations then surely you're looking at maintaining perm status and the trimmings you're currently furnished with?

Yes. This is quite likely although overall I will be a bit worse off and my future salary is likely to be constrained by 'marked time'. If they were to offer me voluntary redundancy because I live some way from the office and I will demand some home working because that is in my current T+C's, I'm trying to establish what my contacting position would be. Based on all the responses, I may well shy away from it as even if it came off, it may only be short term. Sounds like a load of potential hassle. Better to make a proper decision to go off contracting and then explore the wider market rather than get fixated on one client even if it is the only one I can get to daily without overnight stays.