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First contract - caught by IR35?

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    First contract - caught by IR35?

    Hi all,

    I have recently left a permanent contract with a company to take up a contract with the same company. I was with this company for 13 months before changing to contract.

    Can any one tell me if I am caught by IR35?

    Thanks

    #2
    Not from that little information

    Will you be doing exactly the same work? What, if anything, is different? Why did you change? How will the work differ from perm staff? Do you have any degree of control over what you'll be doing? Will it be a specific project or ongoing services? Will you be able to send a substitute? Are you obliged to carry on working there? Are you expecting ongoing work?

    Or - get the contract and working conditions reviewed by a specialist. Just call one of the well known firms (or even better, a couple of them) and chat through your situation. They should be able to give free advice over the phone, and perhaps a contract review too (some charge, some don't).
    ContractorUK Best Forum Adviser 2013

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      #3
      Originally posted by heyya99 View Post
      Hi all,

      I have recently left a permanent contract with a company to take up a contract with the same company. I was with this company for 13 months before changing to contract.

      Can any one tell me if I am caught by IR35?

      Thanks
      There is far more to it than whether you worked there previously as an employee. You should get the contract wording and your day to day practices reviewed by a specialist before forming an opinion.

      HTH
      http://uk.linkedin.com/pub/dan-moss/18/18/105

      Comment


        #4
        Originally posted by heyya99 View Post
        Hi all,

        I have recently left a permanent contract with a company to take up a contract with the same company. I was with this company for 13 months before changing to contract.

        Can any one tell me if I am caught by IR35?

        Thanks
        Yes, thats the reason IR35 was invented in the first p[lace to stop people doing exactly that

        Comment


          #5
          As others here will no doubt point out, your IR35 position is based on numerous factors - your post only considers one. However its not a good start - switching from permanent employment to becoming a contractor with the same firm puts you on unsteady ground.

          I suggest you get in touch with a employment specialist such as Contract lawyer (UK) Roger Sinclair Egos Ltd to give you a thorough review of your IR35 position.
          2012 CUK Reader Awards - '...Capital City Accountancy, all of whom were outside the top three yet still won compliments from CUK readers for their services' - well, its not an award, but we'll take it! - Best Accountant (for IT contractors) category
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            #6
            The fact you don't understand if it is or isn't would strongly point to yes it is because you are not aware of the factors required to keep you out IMO.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

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              #7
              Have you been taken on by the company in the same role with the same duties and reporting structure??
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                #8
                Originally posted by Clare@InTouch View Post
                Will you be doing exactly the same work? What, if anything, is different? Why did you change? How will the work differ from perm staff? Do you have any degree of control over what you'll be doing? Will it be a specific project or ongoing services? Will you be able to send a substitute? Are you obliged to carry on working there? Are you expecting ongoing work?
                I will pretty much be doing the same work. I work on one main project but I'll be branching a bit onto a different project. I'll be working on the 2 projects and when they finish, I'll be doing other projects if all goes well. I don't think I could send a substitute because they would need to be trained. I am not obliged to stay. The company said I can agree to either a month's notice or a week's notice.

                Originally posted by Clare@InTouch View Post
                Or - get the contract and working conditions reviewed by a specialist. Just call one of the well known firms (or even better, a couple of them) and chat through your situation. They should be able to give free advice over the phone, and perhaps a contract review too (some charge, some don't).
                Can you recommend a specialist? How could I find a specialist? I haven't got a contract yet. It was a verbal chat with my old boss. Rate, hours, work, etc.

                Is there a way I can get the contract worded so I don't get caught by IR35?

                Originally posted by LisaContractorUmbrella View Post
                Have you been taken on by the company in the same role with the same duties and reporting structure??
                Yes.

                Comment


                  #9
                  Originally posted by heyya99 View Post
                  Is there a way I can get the contract worded so I don't get caught by IR35?
                  Wording, if not the same as the actuality of the situation, is a moot point.
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                    #10
                    Originally posted by heyya99 View Post
                    I will pretty much be doing the same work. I work on one main project but I'll be branching a bit onto a different project. I'll be working on the 2 projects and when they finish, I'll be doing other projects if all goes well. I don't think I could send a substitute because they would need to be trained. I am not obliged to stay. The company said I can agree to either a month's notice or a week's notice.



                    Can you recommend a specialist? How could I find a specialist? I haven't got a contract yet. It was a verbal chat with my old boss. Rate, hours, work, etc.

                    Is there a way I can get the contract worded so I don't get caught by IR35?



                    Yes.
                    The PCG have a great contract that would be deemed outside IR35, but only if it's backed up by working practices. A written contract that's a fabrication (a sham - google Autoclenz for a recent case where this happened) isn't worth the paper it's printed on.

                    Google IR35 specialist to find an accountant who will review your contract and talk you through the legislation (some even advertise on CUK). It does sound like you're not on a good footing to be honest - what made you change from employee to contractor? Presumably your rate went up enough to compensate you for the lack of sick pay & other benefits....?
                    ContractorUK Best Forum Adviser 2013

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