FTC & IR35

[PurpleGorilla]

Would a 9 month FTC covering a maternity leave automatically put you in IR35?

[malvolio]

Would a 9 month FTC covering a maternity leave automatically put you in IR35?

No. An FTC is normal employment with a fixed end date and no option for redundancy and you're on the client's payroll. IR35 is not relevant.

[Eirikur]

You would be on the company's payroll. NI + taxes will be taken off your salary by them. If you do pay yourself through your own ltd company a salary as well, it would most likely be better to stop that immediately.

[kevpuk]

No. An FTC is normal employment with a fixed end date and no option for redundancy and you're on the client's payroll. IR35 is not relevant.

This ^^

FTC is the worst of both worlds, IMHO

[kal]

This ^^

FTC is the worst of both worlds, IMHO

Seriously dude run away, a FTC is a waste of time, better to concentrate on getting a proper contact (or even permie) role.

[Eirikur]

Seriously dude run away, a FTC is a waste of time, better to concentrate on getting a proper contact (or even permie) role.

Depends of course on the level of pay is it £200k p.a. or £50k? (probably the latter in which case it's better to run away)

[TheCyclingProgrammer]

What everyone else said, but if you actually were to take this on as a normal 9 month contract through YourCo, the fixed duration or the fact that it is maternity cover isn't overly relevant to your IR35 status. IR35 status will be determined on the usual factors, principally MOO, D&C and RoS. Cover your bases and you should be fine, but if it seems like the client really does just want a temporary employee to cover maternity then there is a good change that they will treat you like an employee and expect you to act like an employee regardless of how you contract with them, so there would be a risk there.

[PurpleGorilla]

Wow, thanks guys. FTC sounds like a pile of tulip. F that!

[malvolio]

What everyone else said, but if you actually were to take this on as a normal 9 month contract through YourCo, the fixed duration or the fact that it is maternity cover isn't overly relevant to your IR35 status. IR35 status will be determined on the usual factors, principally MOO, D&C and RoS. Cover your bases and you should be fine, but if it seems like the client really does just want a temporary employee to cover maternity then there is a good change that they will treat you like an employee and expect you to act like an employee regardless of how you contract with them, so there would be a risk there.

Not really, it's a limited term employment contract with all that implies including proportionate leave entitlement, but no benefits such as pension contributions, bonuses and redundancy entitlement. You can't run it through YourCo since it will be paid net to you personally.

[PurpleGorilla]

Not really, it's a limited term employment contract with all that implies including proportionate leave entitlement, but no benefits such as pension contributions, bonuses and redundancy entitlement. You can't run it through YourCo since it will be paid net to you personally.

Thanks, still tulip LOL!🙊🙉🙈