IT Contractors in Investment Banks? Outside IR35?

[cojak]

My company has it's own 2 year rule. The rule is that no project needs to be longer than 2 years.

The Director permits extensions but will reject any extension beyond 2 years unless it is to sign-off the project.

And if the project gets cancelled before the contract expires I must hand in my termination.

The Director is a bit of a bitch..

[northernladuk]

My company has it's own 2 year rule. The rule is that no project needs to be longer than 2 years.

The Director permits extensions but will reject any extension beyond 2 years unless it is to sign-off the project.

And if the project gets cancelled before the contract expires I must hand in my termination.

The Director is a bit of a bitch..

What does this director do if the project finishes in 18 months and they they are asked to work on another one for 6 months with extensions expected up to 18 months? Same client.

[cojak]

What does this director do if the project finishes in 18 months and they they are asked to work on another one for 6 months with extensions expected up to 18 months? Same client.

The contract ends when the project ends.

It's time to terminate that contract and find a new one (and client).

As happened in Jan of this year.

[Fred Bloggs]

My company has it's own 2 year rule. The rule is that no project needs to be longer than 2 years.

The Director permits extensions but will reject any extension beyond 2 years unless it is to sign-off the project.

And if the project gets cancelled before the contract expires I must hand in my termination.

The Director is a bit of a bitch..

I think that's a good rule to have too. Not least it means that HMRC have more contracts to consider individually if they come sniffing around about IR35. Myself, my longest role is 18 months, I've never had a job run to 24 months, though my current one might just do so, 12 months in and I reckon nearly a year more ahead looking at the workflow.

[blacjac]

The contract ends when the project ends.

It's time to terminate that contract and find a new one (and client).

As happened in Jan of this year.

I wouldn't want a Director that does that anywhere near a company I was a shareholder in!

Good job CojakCo is not a PLC

[cojak]

I wouldn't want a Director that does that anywhere near a company I was a shareholder in!

Good job CojakCo is not a PLC

Isn't it just! That way CojakCo can make business decisions on what benefits the company, not just the shareholders.

Since the next contract I walked into the following week was substantially better both financially and technically.

[sammywammy]

IIRC, there was a change in working practices from project-based work to becoming generally available (among other things), so length of contract was not the issue, at least directly.

Well that's basically my observation with IT contractors working for banks (at least in the support-focused teams I've worked in, I'm sure it is different if you are an app developer). They are clearly just "generally available", especially if their works involves a support rota.

Yes, they're still supplying a "service" to a client but it's really hard to differentiate them from an employee.

Unfortunately, I have never really got round to asking these other contractors if they are operating outside IR35. In my current team, I am the only contractor so currently don't have anyone to ask.

From your (or anyone's) experience, are most of these IT contractors, who appear to use Ltd companies, operating outside IR35?

[jamesbrown]

From your (or anyone's) experience, are most of these IT contractors, who appear to use Ltd companies, operating outside IR35?

I'm probably not the best person to ask, as I don't work onsite for any of my clients, but my impression is that quite a few contractors don't know (or care) enough to demonstrate that they're operating outside IR35 and, perhaps, even have the mentality of a temp. The situation with enforcement might have allowed that up until now.

[centurian]

The big banks are a bit of a contradiction in terms of IR35.


With most industries, contractors are intended to come in, get the job done, then go. But many banks do tend to view contractors as temps, whereby extensions are a given as long as there is still "headcount" and you haven't screwed up.

On the plus side, they do exhibit a few "outside IR35" pointers as others have pointed out (enforced breaks, early terminations, rate cuts, insurance checked etc.)

[Wanderer]

I wouldn't want a Director that does that anywhere near a company I was a shareholder in!

If by some act or omission by the director, the company fails the IR35 test then the shareholder isn't gonna get paid any dividends so they should be happy.