Contracting With Previous Employer

[eddie1507]

Hi All,

My question to you guys -

Is it possible to go from being perm with a company to then transition to contracting with the same employer and still be outside IR35 ? I know this is the thing that HMRC created IR35 to prevent however if the possibility did come up for me then I would gladly accept this as this would allow me to create a warchest quickly and then once the contract has ended allow me to look for other contracting roles ?

I know people will say speak to QDos etc... but any experience from you guys would be greatly appreciated?

[malvolio]

Try searching. Been asked and answered many times.

[eddie1507]

Try searching. Been asked and answered many times.

Care to give me an example ? I have limited success to the question i have asked.

[TheLordDave]

I know this is the thing that HMRC created IR35 to prevent

You said it yourself.

[eddie1507]

You said it yourself.

So there is noway at all to stay outside of IR35 ?

[BolshieBastard]

So there is noway at all to stay outside of IR35 ?

You may as well paint a bullseye on yourself if you want to go contracting with the same former employer.

Whilst I wouldnt say its impossible to be outside in such circumstances, you're going to have a very, very hard time convincing hMRC that you're outside and, your former employer's HR will be unlikely to argue against them in your favour.

I would also presume you'd find it nigh on impossible to get insurance cover in case you are investigated.

If IR35 was brought in to prevent friday perm, monday contractor and you do exactly this, its going to be very difficult to show you're outside it, isnt it?

[eddie1507]

You may as well paint a bullseye on yourself if you want to go contracting with the same former employer.

Whilst I wouldnt say its impossible to be outside in such circumstances, you're going to have a very, very hard time convincing hMRC that you're outside and, your former employer's HR will be unlikely to argue against them in your favour.

I would also presume you'd find it nigh on impossible to get insurance cover in case you are investigated.

If IR35 was brought in to prevent friday perm, monday contractor and you do exactly this, its going to be very difficult to show you're outside it, isnt it?

Thanks for the repsonse, when you lay the facts out as the above it does seem rather difficult.

In that regard is it difficult to say be inside IR35 for my first contract then for on going contracts try to work outside of IR35 ? or would this just be a headache for me ?

[malvolio]

So there is noway at all to stay outside of IR35 ?

Yes there is. But...

How well do you understand IR35? Can you guarantee that your new contract sits comfortably outside its scope, in reality as well as contractually? Will your employer understand and respect your change of status?

Or stay within IR35 - which is the sensible route - in which case will your new rate allow you to build up a war chest after overheads and the depredations of IR35? Have you got IPSE membership or something commercial to get the equivalent cover? Have you read and understood all the guides?

Why is your employer allowing this anyway? What's in it for them (hint: roughly 30% saving on your employment costs and a host of laws that no longer apply...).


If you want to be a contractor, then be a contractor; this isn't how you do it.

[BolshieBastard]

Thanks for the repsonse, when you lay the facts out as the above it does seem rather difficult.

In that regard is it difficult to say be inside IR35 for my first contract then for on going contracts try to work outside of IR35 ? or would this just be a headache for me ?

If you start a contract with the same former employer immediately after leaving, subsequent contract extension with the same client will likely be IR35 caught too (although each contract and working practices should be looked at individually).

If your first and subsequent contracts are with a totally unconnected company ie not your former employer, you've more chance of being outside IR35 but still need your contract and working practices reviewed and deemed outside.

If you leave your employer, contract with a couple of other companies then go back to your former employer after a couple of years, you'd have more chance of being outside IR35 providing your contract and working practices support this.

Its best to avoid going perm friday, contractor monday with your former employer.

[northernladuk]

Care to give me an example ? I have limited success to the question i have asked.

Not hard really...

https://www.google.co.uk/search?q=ir...spv=1&ie=UTF-8