Working with AWR/IR35

[mmmBeer]

Hi

I have been offered a contract that is AWR compliant and therefore inside IR35 as it will offer staff benefits such as paid holidays and bonus etc. There is no rewording option its sign or walk away.

So having hit the calculators and working on some very rough estimations of what the benefits may be worth it seems that they should offset the tax hit by between 50 to 90% depending on whether a bonus (and how much) will be paid etc.

I was just wondering if anyone out there works like this inside of IR35/AWR and how they actually find the experience in real life and how much they find the extra tax is offset by the AWR benefits? So far I have only ever worked through my Ltd co on standard business to business contracts so have never encountered AWR and its impact.

thanks
M.

[malvolio]

Hi

I have been offered a contract that is AWR compliant and therefore inside IR35 as it will offer staff benefits such as paid holidays and bonus etc. There is no rewording option its sign or walk away.

So having hit the calculators and working on some very rough estimations of what the benefits may be worth it seems that they should offset the tax hit by between 50 to 90% depending on whether a bonus (and how much) will be paid etc.

I was just wondering if anyone out there works like this inside of IR35/AWR and how they actually find the experience in real life and how much they find the extra tax is offset by the AWR benefits? So far I have only ever worked through my Ltd co on standard business to business contracts so have never encountered AWR and its impact.

thanks
M.

AWR has nothing to do with IR35. Actually it also has nothing to do with in-business limited company contractors; they are out of scope.

What you're looking at is a Fixed Term Contract - that's neither employment nor contracting, just the worst bits of both without the money.

HTH

[LisaContractorUmbrella]

If you are outside IR35, then you will fall outside the scope of the AWR - if you are inside you won't. As Mal says though - this sounds like a fixed term contract but I would check the wording very carefully - who has the contract been issued by?? Agency or end client??

[mmmBeer]

If you are outside IR35, then you will fall outside the scope of the AWR - if you are inside you won't. As Mal says though - this sounds like a fixed term contract but I would check the wording very carefully - who has the contract been issued by?? Agency or end client??

Ive just googled fixed term contract and I sure as hell hope its not one of those!

I dont think it can be as there will be an agent.....from what I can gather HR at this client have said all contracts must be AWR compliant, therefore by default putting the contracts inside IR35 with the 'staff' benefits you get even if you dont want! Its a case of weighing up how much rate plus benefits is worth compared to the extra 20% tax.

[cojak]

You'll find that some agencies are actually trying to get contractors to use these types of contract.

Take a look here: http://forums.contractoruk.com/busin...g-rip-off.html

[cojak]

..and as I've been reminded here () you can't opt-out of AWR.

[northernladuk]

Ive just googled fixed term contract and I sure as hell hope its not one of those!

I dont think it can be as there will be an agent.....from what I can gather HR at this client have said all contracts must be AWR compliant, therefore by default putting the contracts inside IR35 with the 'staff' benefits you get even if you dont want! Its a case of weighing up how much rate plus benefits is worth compared to the extra 20% tax.

What do you mean you hope? You are about the only person that should be able to confirm it if is or isn't. You can't go signing contracts 'hoping' it isn't something or other.

[mmmBeer]

What do you mean you hope? You are about the only person that should be able to confirm it if is or isn't. You can't go signing contracts 'hoping' it isn't something or other.

Ive not seen it yet Im currently still negotiating with the client, then it will go to an agent to deal with the paperwork.

[Scruff]

I spent 2 yrs 10 mnths working like this as an employee of Manpower on assignment to a certain very large Company. Got paid contractor's rates but on PAYE, with 33 days p.a. paid leave, sick leave. I would say that I would do it again, since it also had paid overtime. Net take home was 65% after NI and PAYE.

[LisaContractorUmbrella]

Ive just googled fixed term contract and I sure as hell hope its not one of those!

I dont think it can be as there will be an agent.....from what I can gather HR at this client have said all contracts must be AWR compliant, therefore by default putting the contracts inside IR35 with the 'staff' benefits you get even if you dont want! Its a case of weighing up how much rate plus benefits is worth compared to the extra 20% tax.

I would read the contract very carefully before signing to confirm what their and your obligations are