Being a GM and IR35

[Fraidycat]

I've been asked to be the General Manager at an IT company.

For starters get that renamed to 'Management Consultant' or something similar.

[eek]

For starters get that renamed to 'Management Consultant' or something similar.

a name change doesn't change anything....

[BlasterBates]

Good advice here:

How the UK's IR35 tax rules affect interim and virtual CISOs | CSO Online

"If you're taking a five-day-a-week, six- or-12-month contract, then you're probably going to get caught,” says West. “Whereas, if you're taking an ad hoc contract which are one or two days a week in terms of advisory capacity on an ongoing basis, then that's probably where that market is heading.”

[northernladuk]

For starters get that renamed to 'Management Consultant' or something similar.

And that makes a difference how?

Damn sockies.

[jamesbrown]

Offering the OP our opinions w/r to IR35 is pretty pointless if they've really taken expert advice already.

I note, however, that the OP has been a bit cagey about that. Makes me wonder whether they've had a legal review but not an IR35 review, else had an accountant do the review, else paid for a cheap review of contractual terms only. It does smell a bit unlikely, given the circumstantial evidence but, again, our opinions are pretty worthless compared to the opinion of an expert reviewer that has all the facts (even if the assessment always carries a degree of subjectivity).

[Lance]

Good advice here:

How the UK's IR35 tax rules affect interim and virtual CISOs | CSO Online

I'm not sure that works though.

The number of days a week has no bearing on IR35.
Also that article misses out a critical point in that CISO as a role is very specific and not appropriate for a contractor to provide.... There are responsibilities for risk acceptance for example that a company just cannot outsource. They can take advice from an external but then that external isn't really a CISO, they are just a security consultant.
Same with Data Protection Officers (who are often the same person as the CISO).

Admittedly CISOs are a different case to general managers.

[Lance]

Offering the OP our opinions w/r to IR35 is pretty pointless if they've really taken expert advice already.

I note, however, that the OP has been a bit cagey about that. Makes me wonder whether they've had a legal review but not an IR35 review, else had an accountant do the review, else paid for a cheap review of contractual terms only. It does smell a bit unlikely, given the circumstantial evidence but, again, our opinions are pretty worthless compared to the opinion of an expert reviewer that has all the facts (even if the assessment always carries a degree of subjectivity).

cagey about the legal advice.
cagey about the client size.


I'm going out on a limb here and going to suggest that the OP has never been a contracted manager before.

I'll go further out on a limb and suggest that this role is nothing but a tax avoidance method and the role is a permanent one but the client doesn't want to pay full whack, and the OP wants to take more home.
In fact the only mentions of this being anything other than "permanent" was not by the OP.

So any outside determination is based more on a desire to be outside than a reality. Not that that is any different to most contractors over the last 20 years.

[jamesbrown]

Something certainly smells. Then again, half-truths and drip-feeding have become the norm around here.

[Fred Bloggs]

cagey about the legal advice.
cagey about the client size.


I'm going out on a limb here and going to suggest that the OP has never been a contracted manager before.

I'll go further out on a limb and suggest that this role is nothing but a tax avoidance method and the role is a permanent one but the client doesn't want to pay full whack, and the OP wants to take more home.
In fact the only mentions of this being anything other than "permanent" was not by the OP.

So any outside determination is based more on a desire to be outside than a reality. Not that that is any different to most contractors over the last 20 years.

Absolutely, a traditional general manager role can never be outside IR35. You can pretend it is and take the risk, but that's not the same thing as truly being outside, obviously.

[Fraidycat]

And that makes a difference how?

Damn sockies.

Why raise additional red flags for HMRC by having the title of 'General Manager' on your contract, it smells of being a Permie.

Rebranding the role as a 'Management Consultant', doesn't cost anything and wont do any harm.

Ofcourse this isnt the only thing the OP should do, making sure his working practices put him firmly outside IR35 is obviously the most important.