contract for current employer

[js2008]

Basically an IR35 question.

I currently work for an IT services company. My normal job is to complete projects for number of different customers. For some time I have been working for one end customer delivering a large project as part of managed service. A situation has arisen for a role that does not currently exist and needs to be filled, which will encompass working for the same customer but still via my current employer. It is similar to what I do but not quite the same.

There could be an opportunity to leave and contract in this new role.

Will this look bad from an IR35 perspective?

[BolshieBastard]

If this contract is going to be with your current employer then yes, you will likely be caught under IR35 if you take a contract with them.

[TykeMerc]

If this contract is going to be with your current employer then yes, you will likely be caught under IR35 if you take a contract with them.

Pretty much what he said.

It is possible you could argue the role doesn't exist at the (current) employer and with a cleverly worded contract you might get away with it, but I suspect the Friday-Monday argument would win.
HMRC could easily argue that since your employer has in effect taken on the client's work then it's simply an extension to their current business which could have been done with you still employed.

Personally I think it would be too risky.

[sal]

Personally I think it would be too risky.

You should probably clarify that it would be too risky to take the contract and treat it outside IR35. It's perfectly OK to take the contract and treat it inside IR35 by paying the appropriate tax.

[TykeMerc]

You should probably clarify that it would be too risky to take the contract and treat it outside IR35. It's perfectly OK to take the contract and treat it inside IR35 by paying the appropriate tax.

Absolutely the risk would be on IR35 grounds as you mention.

That said leaving an employer needs to be done for a reason (them asking you to go contract rather than employee sure as hell isn't a good one) so you need to think out why you would reject the benefits and protection of employment while working for the same people. That's a very different question though.

[TheFaQQer]

Basically an IR35 question.

I currently work for an IT services company. My normal job is to complete projects for number of different customers. For some time I have been working for one end customer delivering a large project as part of managed service. A situation has arisen for a role that does not currently exist and needs to be filled, which will encompass working for the same customer but still via my current employer. It is similar to what I do but not quite the same.

There could be an opportunity to leave and contract in this new role.

Will this look bad from an IR35 perspective?

Ignoring IR35 for a second, there are two questions that I would consider.

1) Will your current employer be happy for you to leave and then return as a contractor?

2) If so, why?

Someone's going to get a raw deal along the way, and I'd bet it will be you.