Contract job in my previous permanent company

[Software]

Hi All,

I worked for a Financial company as a permanent employee for 2 years and i resigned from that job stating some family related issues and i worked as a contractor for 2 months for another company. This contract is going to end soon.

Now in the same permanent company similar to the role i worked they have advertised a new contract role.

1. Is it OK to work as contractor in the company where i worked as a permanent employee?
2. Can i speak directly to my previous Manager or go through the Agency for that Job?
3. How about IR35 in this case?

Please reply.

[eek]

Hi All,

I worked for a Financial company as a permanent employee for 2 years and i resigned from that job stating some family related issues and i worked as a contractor for 2 months for another company. This contract is going to end soon.

Now in the same permanent company similar to the role i worked they have advertised a new contract role.

1. Is it OK to work as contractor in the company where i worked as a permanent employee?
2. Can i speak directly to my previous Manager or go through the Agency for that Job?
3. How about IR35 in this case?

Please reply.

Go direct because at least it may ensure an interview. However Friday to Monday contracting is the reason for IR35 so be prepared to pay it.

[SueEllen]

1. Depends on the company policy. Some companies won't touch you again for a few months to a year.

2. You can try but again depends on the company policy. Some companies will interview you then refer you to the agent as they don't want to deal with loads of small suppliers.

3. If you do get the role then you need to get your contract reviewed explaining the situation to the reviewer. You should always get contracts reviewed anyway as lots of agents (not all) stick in horrible clauses that can screw you and direct clients sometime write really silly clauses.

[Sockpuppet]

1. Is it OK to work as contractor in the company where i worked as a permanent employee?
2. Can i speak directly to my previous Manager or go through the Agency for that Job?
3. How about IR35 in this case?

1. Yes
2. Yes, direct.
3. You'll be so far inside IR35 you'll never be able to see the light of being outside it.

[nomadd]

3. You'll be so far inside IR35 you'll never be able to see the light of being outside it.

This^

(Note to OP: Don't kid yourself, or let anyone of this forum kid you, that "Having your contract reviewed and joining the PCG..." is going to change this.)

[Mr.Whippy]

This^

(Note to OP: Don't kid yourself, or let anyone of this forum kid you, that "Having your contract reviewed and joining the PCG..." is going to change this.)

So what's the general consensus on how long away is needed to avoid being inside IR35?

[nomadd]

So what's the general consensus on how long away is needed to avoid being inside IR35?

If only life were so simple...

(See my sig. for advice. )

[TheFaQQer]

So what's the general consensus on how long away is needed to avoid being inside IR35?

I don't think you can put a hard and fast rule on it. Since the OP is basically having two months out before going back to do the same job, I'm not convinced that any break is a good defence.

If you can prove (and the client will back you up) that you are in a different role and are not an employee, then there's no reason to even have a break. To go back to the same job and try and argue that you aren't an employee isn't something I would feel comfortable arguing with HMRC.

[SueEllen]

I don't think you can put a hard and fast rule on it. Since the OP is basically having two months out before going back to do the same job, I'm not convinced that any break is a good defence.

The OP needs to confirm it is exactly the same job not a similar one.

And that can only be done by talking to the client, their ex-employer.

Also the more bits of paper they have to prove that it's not the same role i.e. their old contract of employment with verbal back up from the client would help them.

[Wanderer]

1. Is it OK to work as contractor in the company where i worked as a permanent employee?
2. Can i speak directly to my previous Manager or go through the Agency for that Job?
3. How about IR35 in this case?

1. Yes, as long as you didn't get a tax free redundancy payout when you left.
2. Absolutely, talk to the manager direct. Don't get the parasitic agencies involved unless you have to. If they want an agency in the relationship then it's better if you have already done the deal and the agency will take a minimal cut. Also going direct means that they agency won't put up anyone else in competition to you.
3. Do HMRC's IR35 assessment - contracting for a client who you have previously been an employee of will put you in the very high risk category. The only way you could really be outside IR35 is if you are running a consultancy business employing a number of people that you provide back to the client. Going straight back and doing your old job is a big no no and that is what IR35 was specifically setup to target.