Most flexible solution for contractors in current climate

[hokken]

Hi guys, I know there isn’t any black and white answer to my question, anyway here is my situation.

i have been in permanent employment as a front end dev for the last 5 years. I am a UK tax resident but might potentially become a french tax resident in the future.

i am planning to go back to contracting in a month or two and I am wondering what would be the best solution, I need to move temporarily to France and would like to be able to carry on working on the UK market.

From one side I hear that many contractors are dropping their PSC to work under umbrella companies, I also hear some other voices saying that you can keep your PSC as you can still be working inside IR35 and be paid through your PSC.

i am just worried that if I go the umbrella route i might have to go through PAYE for contracts outside IR35 and lose significant amount of money. At the same time I am worried that this blanket banning of contractors operating though their PSC might be the rule for quite a while.

In any case, even if I become a tax resident in France I’d like my umbrella or PSC to be UK based as it seems to be easier if I want get as much work as possible through Uk agencies.


Your thoughts?

[northernladuk]

You don't have a grasp of what is going on at the moment. Understandable if you are perm but totally not if you have been looking in to coming back to contracting. It's being completely turned over.

i am planning to go back to contracting in a month or two and I am wondering what would be the best solution, I need to move temporarily to France and would like to be able to carry on working on the UK market.

Maybe possible with the current WFH climate but some clients, particularly public sector won't let their data go overseas so that's not going to work. If you've already moved then you become unattractive compared to a UK based contractor of equal skill. Also the WFH period is extremely limited now. I've been told the next 3 months is the last totally remote and will be expected to attend the client office at some level after that. It's likely to be a bit here a bit there but it's got to happen to meet the team and colleagues which I am actually looking forward to.
So I think you are a bit late to market if you want a 100% work from anywhere gig for more than three months. Certainly is the time for working anywhere but it's coming to an end.

From one side I hear that many contractors are dropping their PSC to work under umbrella companies, I also hear some other voices saying that you can keep your PSC as you can still be working inside IR35 and be paid through your PSC.

Wrong and wrong(ish). People are not dropping PSC's to work under brollies. They are forced to do it. Many clients are either banning PSC's outright or an pushing many contractors inside IR35 due to the changes in April. The contractors don't have a choice. The availability of outside gigs is going to drop dramatically for the next few years so clients are going to be able to pick who they want. You being in France is now going to be a very big tick against you when they've got a line of people more experienced and local.

You can, in theory, work through your PSC inside but gigs that allow you to do so will be like hens teeth. 99.99 will be through agency PAYE or Umbrella. If you are holding any hope of finding the right gig that allows you to work from France AND allows inside via IR35 via a PSC you are going to be spending a lot of time on the bench.

12 months ago this was a great idea and I know many that are doing exactly this. Now? You've caught the arse end of it and, IMO, is no longer sustainable mid to longer term.

[hokken]

Ok, thanks for your insight. I am a bit unsure that the “going back to the office” is going to be on the menu for quite a while tho, not the case for my company which has noticed a rise in productivity and a drop in office running cost and is quite happy to carry on with that setup for the devs and I suspect my company is not the only one.