Some IR35 advice (inside/outside)

[markuk75]

Hi Guys,

I was a permie and switched to contracting (LTD) during this tax year 16/17 for working for the same company. I assumed it is safe to have a contract within IR35 to the end of tax year 16/17.

Will I be outside IR35 from next tax year 17/18 if I sign the new contract with any recruitment agency (middle man) which will ask me to work for the same company I was working before (in tax year 16/17) ?

Not sure whether it would work, but being outside IR35 would simplify my accounting, cost, tax etc.

Can you give some feedback on this?

Mark

[DaveB]

Hi Guys,

I was a permie and switched to contracting (LTD) during this tax year 16/17 for working for the same company. I assumed it is safe to have a contract within IR35 to the end of tax year 16/17.

Will I be outside IR35 from next tax year 17/18 if I sign the new contract with any recruitment agency (middle man) which will ask me to work for the same company I was working before (in tax year 16/17) ?

Not sure whether it would work, but being outside IR35 would simplify my accounting, cost, tax etc.

Can you give some feedback on this?

Mark

You are squarely inside IR35 and will remain so for as long as you continue working for the same company. If get a contract with another client, preferably more than one, for 6 months or more then you may be able to come back and work for them outside IR35 but you would have to be very sure of your contract and working practices. If you just come back and carry on doing the same job you were before then you will almost certainly be back inside IR35 when you do.

[northernladuk]

Sounds like you are playing tickbox IR35 rather than understanding it.

Surely being inside is making it simpler? You just go brolly.

[markuk75]

IR35

Thanks for swift reply. I was expecting this but needed your advice. Thanks a lot, will think about getting a new client on board and have more than one contract.

[northernladuk]

Thanks for swift reply. I was expecting this but needed your advice. Thanks a lot, will think about getting a new client on board and have more than one contract.

Makes no difference. iR35 is per contract. You could be inside for one, out the other or even caught for both.

Please do some more research.

[Fred Bloggs]

Thanks for swift reply. I was expecting this but needed your advice. Thanks a lot, will think about getting a new client on board and have more than one contract.

Makes no difference, you'll still be IR35 caught for this contract, even if you're outside at the same time on another contract.