Employee

[northernladuk]

In my view, IR35 depends on the contract. Not whether you become an employee of the client later. Do note, however, that if you have had only one contract, you cannot claim travel and subsistence expenses for a temporary work place.

I disagree. IR35 depends on the working conditions. It can say anything you want it to in your contract but if your working practices are different (which, I would argue, they are in many cases) you are caught. That is why I believe going perm->contract or vice versa with the same client doing the same job is bloody great flag. It would be very forward thinking of your client to alter your working practices so distinctly when you switch over in both cases so would argue they don't. If you go contract to perm it is likely he needed a perm anyway so you are being a typical hidden perm for the term of the contract and then just switch to perm at the end. If this was the clients expectation he wouldn't have honoured right to substitution or treated you as a service company. He would have seen you as a perm on a 'trial' period filling a slot that needed a permanent head.

[jmo21]

I disagree. IR35 depends on the working conditions. It can say anything you want it to in your contract but if your working practices are different (which, I would argue, they are in many cases) you are caught. That is why I believe going perm->contract or vice versa with the same client doing the same job is bloody great flag. It would be very forward thinking of your client to alter your working practices so distinctly when you switch over in both cases so would argue they don't. If you go contract to perm it is likely he needed a perm anyway so you are being a typical hidden perm for the term of the contract and then just switch to perm at the end. If this was the clients expectation he wouldn't have honoured right to substitution or treated you as a service company. He would have seen you as a perm on a 'trial' period filling a slot that needed a permanent head.

Agreed!

[NotAllThere]

I use the term "the contract" not to mean the piece of paper with signatures, but the piece of work as a whole. So I'll rephrase:

In my view, IR35 depends on the specific gig. Not whether you become an employee of the client later. I.e. what OG said. Each gig is (should be) primarily taken on its own merits. Gigs taken together are a minor pointer. hth

I've seen people often go from project as an external onto the client team, with quite different working practices.