PAYE to Direct contract
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    Cid
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    Default PAYE to Direct contract

    Hello...

    i'm currently PAYE with a company in the city.
    it has been discussed about the possibility of me going free lance and then working for 2 days a week for the company.
    this would be a direct contract with no agency's etc.

    The company are decent people and already have a couple of people who work in this fashion.
    So i have no concerns about making this change.

    However the whole umbrella/LTD/Accountant thing can get a bit confusing.
    from what i have read it appears that as a direct contract, i can better protect myself from IR35.
    So going down the route of a LTD with an accountant is going to be best.

    note i would only be working 2 days per week with my current company.
    i would be looking to get a direct contract for another day or two per week elsewhere.
    or maybe take on some ad-hoc hourly work for other clients.

    this would make a stronger case for being outside IR35 ?

    Cheers
    Cid,

  2. #2

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    Quote Originally Posted by Cid View Post
    Hello...

    i'm currently PAYE with a company in the city.
    it has been discussed about the possibility of me going free lance and then working for 2 days a week for the company.
    this would be a direct contract with no agency's etc.

    The company are decent people and already have a couple of people who work in this fashion.
    So i have no concerns about making this change.

    However the whole umbrella/LTD/Accountant thing can get a bit confusing.
    from what i have read it appears that as a direct contract, i can better protect myself from IR35.
    So going down the route of a LTD with an accountant is going to be best.

    note i would only be working 2 days per week with my current company.
    i would be looking to get a direct contract for another day or two per week elsewhere.
    or maybe take on some ad-hoc hourly work for other clients.

    this would make a stronger case for being outside IR35 ?

    Cheers
    Cid,
    No, each contract is treated separately for IR35.

    Would you be effectively be going back and doing the same role, albeit on a part time basis?

    Also, depending on what you do, do not assume you will easily pick up other free lance part time work to support this.

  3. #3
    Cid
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    Quote Originally Posted by MrMarkyMark View Post
    No, each contract is treated separately for IR35.

    Would you be effectively be going back and doing the same role, albeit on a part time basis?

    Also, depending on what you do, do not assume you will easily pick up other free lance part time work to support this.
    Yes it would be the same role but on PT basis.
    point noted about gaining other work.

  4. #4

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    Quote Originally Posted by Cid View Post
    Yes it would be the same role but on PT basis.
    Pretty much a slam dunk.

    If you can pick up other work (assuming it is outside IR35) then it could still be worth going Ltd.
    Will work inside IR35. Or for food.

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    Cid
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    Quote Originally Posted by VectraMan View Post
    Pretty much a slam dunk.

    If you can pick up other work (assuming it is outside IR35) then it could still be worth going Ltd.
    What so you mean by a slam dunk ?
    as in inside ir35 ?

  6. #6

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    Quote Originally Posted by Cid View Post
    What so you mean by a slam dunk ?
    as in inside ir35 ?
    Yes he does. IR35 covers Friday to Monday contractors. Carrying on a role that you were doing as a permie can't be anything but inside. All that has changed is they way you are paid so can't be anything but disguised employment. I very much doubt the part time aspect makes any difference at all.
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