Client refused working from home and time off - switch to perm?

[northernladuk]

I've been there 10 years and my business has been up and down with other contracts in parallel. I also sell products (servers, laptops, online backup) and services to the client so not just my presence on site.

Nice.

If I'm well and truly inside IR35 then the switch to perm with the client regardless of the package I mention suits me. It's just not a good time in my life to go job hunting or searching for a contract if I can avoid it. The salary covers my living expenses and I have a 2 year warchest.

That would make my decision a lot easier!!!

It's more the risks of taking the perm position - if there are any? Does the job I do matter? It's a question of whether HMRC would accept that a client might offer a job to someone that has their own business because they want to secure the person long term.

As I see it, my client wants to switch to permies, they want to retain me from my company and have offered a permie role and my business is happy for me to leave and go and work for them. Doesn't this sort of thing happen all the time?

Yes it does, all the time. Buy a small company with skills/products you need and then TUPE the staff in. Models vary, some buy the company and continue to run it is as a separate entity, others TUPE the staff in. The way it's done is a little irrelevant but yes, all time. If you are talking about contractors taking on perm gigs at good clients then most certainly. I know a number of people that have and are still there 5 or so years later.

Remember, you aren't throwing your life away here. All you are doing is changing the way you are paid in a different type of contract. If the very worst happens you give notice and leave to go contracting again. Treat it like a different type of contract or even an FTC if it helps settle your mind. You could do another 6 months there, not like it and leave. It's not the end of the world. For the kind of money that gig is paying, the satisfaction you get working there and the ability to hide from Apr17 fall out all just for what could effectively be a 12 month 'gig' is actually sounding very attractive to me now. Use the time to skill up as well.

What is the worst that can happen? You take the gig on slightly less money but enjoy your work for 12 months and Apr 17 isn't the disaster we expect. What are your options? Carry on with your nice job, leave with new skills to fire in to contracting again? Happy days.
Best that can happen, take job, love it, money is ok, the world falls out of the arse of contracting and we are scrabbling for jobs at reduced salary because they can and you sit laughing at this post in 12 months time.

Seems a bit of a no brainer now it's got this far TBH.

[stek]

Get a sub in?

[funkyd]

Seems a bit of a no brainer now it's got this far TBH.

It's more about any repercussions from HMRC if I switch the gig to permie and if I don't the ongoing risks (if any) whilst the client makes their switch to permie.

I'll have a chat with my accountant and also PCG which should clarify further.

[northernladuk]

It's more about any repercussions from HMRC if I switch the gig to permie and if I don't the ongoing risks (if any) whilst the client makes their switch to permie.

I'll have a chat with my accountant and also PCG which should clarify further.

You'll have a hard time getting hold of anyone at the PCG

[funkyd]

You'll have a hard time getting hold of anyone at the PCG

Oh yes - they changed their name.

I do have IR35 insurance so I'll have to check and see terms and conditions as whilst they will cover any liability I can't imagine if the relationship is clearly within IR35 one would still be covered as your risk profile has changed.

[LondonManc]

It's more about any repercussions from HMRC if I switch the gig to permie and if I don't the ongoing risks (if any) whilst the client makes their switch to permie.

I'll have a chat with my accountant and also PCG which should clarify further.

500pd + 4k pm, so approx. £160k pa + other contracts on the side.
versus 70k + potential 14k.

Let that sink in.

[VectraMan]

They can but everyone needs time off for family or something or other. It's unrealistic not to anticipate that and for them, for their own business sake not to have other provisions.

I could solve it by taking someone on which gets round needing to go permie with them.

Disguised employees maybe need time off for family or something or other, but if you're paying a business quite a lot to provide a service it's reasonable to expect them to provide that service when you need them. You wouldn't expect your mobile phone service to take a day off for family or something or other.

Just saying.

[MrMarkyMark]

500pd + 4k pm, so approx. £160k pa + other contracts on the side.
versus 70k + potential 14k.

Let that sink in.

If these numbers are correct and the OP risks losing all other business, isn't this a no brainer?

[funkyd]

500pd + 4k pm, so approx. £160k pa + other contracts on the side.
versus 70k + potential 14k.

Let that sink in.

Yes but but it's not that black and white. If I'm ever deemed to be inside IR35 then I could get a tax bill back over 11 years! So, leave with a warchest or take the £70k because it suits me right now whilst I look around for something new.

[funkyd]

Disguised employees maybe need time off for family or something or other, but if you're paying a business quite a lot to provide a service it's reasonable to expect them to provide that service when you need them. You wouldn't expect your mobile phone service to take a day off for family or something or other.

Just saying.

Yep, it's my problem. I can take on someone to work alongside me if I want to but given the clients eventual move to permie land it's probably not worth it. If they were not doing that then yes, that would be the solution.