IR35 letters going out to GlaxoSmithKline contractors

[KinooOrKinog]

I think it depends on the way you do business. For example, if you have 3-4 excellent clients that provide repeat work and you're delivering to them simultaneously (hence = variety), why would you stop? Makes no business sense. Too many people are driven by the IR35 tail.

Committment issues mainly

[jamesbrown]

Committment issues mainly

[BrilloPad]

It doesn't matter how long you are at the same organisation. Its all about your contract and your working practices. A lot of people mistakenly think the 2-year expenses rule is somehow IR35 related..its not.

You could have someone who's been at the same place 10 years "outside IR35" and someone who's been there 3 months inside.

All that happens if you keep renewing your contract for years on end, is that you are exposing yourself to a massive bill if you're found to be inside.

Does not change the opinion of someone on the inside that most are disguised employees.

[northernladuk]

As you can guess I'm a long term contractor and in the same organisation. Multiple locations and multiple contracts in different teams though.

Taken advice a number of times regarding contracts and always advised its purely contract and working practices.

Was Jlj in the same location and contract? I'll look it up now you've mentioned it(so thank you), but thought you might have the facts to hand.

So your situation is very different to someone who's been a PM in an org for the last 4 odd years. You've missed a whole host of context out of your comments which is why it's been picked on. Advice about long term contracts should aimed at people who have been in the same role, in which case I think you can read back and see why we think your post was a bit generic and not quite right.

Even if what you said is technically true I don't think that is going to be any comfort to someone on GSK site 4 years in that gets the letter and then has to ask a colleague what IR35 is.

[sal]

One more "issue" with over 2 years at one ClientCo in relation to IR35 is the amount of exposure. If for whatever reason HMRC decides to saddle you with backdated tax for that specific contract the sum will be substantial.

Which might be a driving factor behind their decision which contracts to go after as a cost/benefit exercise. Little point to go to court with a marginal case about 6m contract where the taxman is looking to recoup like £10k. But a juicy 3-4 years stint that already has the "part and parcel" stigma and stand to gain them £50k+ is another matter.

[PerfectStorm]

I've honestly never understood those contractors who stay at the same client for years on end. With contracting, part of the draw for me is moving on fairly frequently. Longest I've spent at one client I think is 16 months...

I've met a few - they have a good relationship with their manager ( ), their staff ( ) that they've hired and interviewed for... one could say they feel part and parcel!

My time in banking was very much like that.

[BrilloPad]

Which might be a driving factor behind their decision which contracts to go after as a cost/benefit exercise. Little point to go to court with a marginal case about 6m contract where the taxman is looking to recoup like £10k. But a juicy 3-4 years stint that already has the "part and parcel" stigma and stand to gain them £50k+ is another matter.

That is the logical approach. But remember they have a limitless budget. Bullying gets them a long way - those without IR35 insurance might struggle to fight.

The whole thing stinks of HMRC trying it on.

[BABABlackSheep]

I've honestly never understood those contractors who stay at the same client for years on end. With contracting, part of the draw for me is moving on fairly frequently. Longest I've spent at one client I think is 16 months...

I’ve come from a consulting background, where you were constantly moved around client sites all over the country.

Beauty of contracting is that you can pick and choose the amount of time and location of work.

Finding a contract where you get paid decent money and can choose to work from home 2-3 days a week if you want goes a long way if you have family.

[BABABlackSheep]

I'd be handing in my notice of termination and getting out asap.

Getting out and closing their limited company, or too late for that now?

[northernladuk]

Getting out and closing their limited company, or too late for that now?

I don't think she'd suggest it if it was too late. The clue is in why you would do this.