Changing from Perm to Contractor - IR35

[ToMeToYou]

I am based in the UK. I was working as a full time permanent employee for a company registered in the UK. I have now changed to a contractor, same team, same work however I am no longer dealing with the UK company, I am now dealing with an Irish registered company. (They have a UK registered company for UK employees and an Irish registered company for non UK employees)

Would I be correct in saying that I wouldn't be classified as Inside IR35, as it is technically a different company than the company I was working for as a full time employee?

Appreciate some input or advice on this.

Thanks!

[northernladuk]

Absolutely not. You are inside all day long. You are a classic case of Friday to Monday contractor which is exactly why IR35 came about. You are doing exactly the same work as a perm so you should be taxed like it. Absolutely nothing to do with who you work for, just the working practices around what you are doing.

Why exactly did you make the switch? I hope you are getting more money for foregoing all your rights. Did the company suggest it? You think they might have done it so they can get rid of you on the spot in the very near future?

P.S. You aren't really a contractor. The term in this cause is disguised permie.

[hobnob]

Would I be correct in saying that I wouldn't be classified as Inside IR35, as it is technically a different company than the company I was working for as a full time employee?

Correct. You are a classic case of Friday to Monday contractor which is exactly why IR35 came about. You are doing exactly the same work as a perm so you should be taxed like it.

I think NLUK meant to say "incorrect", i.e. the new contract is inside IR35.

As a more general point, changing to a different company doesn't automatically make the new role outside IR35; it's all about the 3 pillars (Direction and Control, Mutuality of Obligation, Right of Substitution).

[northernladuk]

I think NLUK meant to say "incorrect", i.e. the new contract is inside IR35.

As a more general point, changing to a different company doesn't automatically make the new role outside IR35; it's all about the 3 pillars (Direction and Control, Mutuality of Obligation, Right of Substitution).

Great spot. I missed the one key word. That changes things completely.. so...

Why on earth do you think you would be correct on saying that. Not one single guide on IR35 ever has mentioned who you are contracted you so I can only assume that was a complete guess

If you are going to go contracting you really need to research what you are doing much better than this. Why have you changed to something you know nothing about. Very odd indeed.

Thinking about it again, how can the client have moved you to a contractor without issuing and SDS? It's their responsibility to determine what you are now. Not you.

[hobnob]

Thinking about it again, how can the client have moved you to a contractor without issuing and SDS? It's their responsibility to determine what you are now. Not you.

I was wondering about that. The OP mentioned that the client is an Irish company (i.e. part of the EU), but then the UK registered company should be responsible for the SDS. It's possible that they get the "small company" exemption, but I suspect that they just haven't got round to issuing the SDS yet.