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

[funkyd]

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

I'm potentially risking a tax bill over 11 years....no other gigs on at the moment so it's just the one right now.

[MrMarkyMark]

If I'm ever deemed to be inside IR35 then I could get a tax bill back over 11 years!

I believe they can only go back a certain amount of years. This can also span multiple contracts, so we can all be in a similar situation.
Its good to see you are risk adverse, however.

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.

Heard that sort of thing many times, easy to say, but often more difficult to achieve in practice.
Obviously, only you know the realism in them managing to achieve this.

[LondonManc]

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.

That's why I suggested significant changes to the contract to reflect the changes in the working environment.

The contract is deemed inside or outside of IR35, not your current engagement. If the engagement model has changed and your working practices, then get a statement from what is now your manager to reflect that the change has taken place and get a new contract in place. If you've been there that long, you'll be able to discuss it with them, cover your 'arris to ringfence your previous contracts as outside IR35 and maintain a better level of pay while seeing how the new working practices suit you without committing to permiedom.

[GB9]

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.

Being inside ir35 now does not mean you were previously. Case law suggests this.

It does sound as if they regard you as p&p, although that wouldn't always have been the case, especially if your previous working practices demonstrate your autonomy.

[LondonManc]

Being inside ir35 now does not mean you were previously. Case law suggests this.

It does sound as if they regard you as p&p, although that wouldn't always have been the case, especially if your previous working practices demonstrate your autonomy.

Correct, hence my suggestion to establish a clear transition from service provider to p&p to help protect previous contracts and reflect a significant change in working conditions. I'd also recommend OP discussing it with their accountant.

[psychocandy]

Total and absolute tosh.

I would concur with NL's summary of the OPs potential IR35 situation, above.

I meant the WFH refusal and client attitude to time off...

[psychocandy]

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.

So are you saying you need to be there whenever the client decides regardless. Sorry but no client has ever paid me enough to totally own my life.

[LondonManc]

I meant the WFH refusal and client attitude to time off...

Bulltulip. This has been flagged at contract reviews as an IR35 indicator. If it's now the de facto working practice, then OP is caught.

[MrMarkyMark]

I meant the WFH refusal and client attitude to time off...

OK, but this could raise the D&C flag.

Which is why it is better to get these sort of things agreed before commencing the contract.

In the OPs case, obviously, he did this and his situation has changed, hence his concern.

I had a similar situation recently and I refused to sign the amended contract.
I refused to sign, as my working practices would not reflect asking for time off with 30 days prior notice.
I did have a slight fight on my hands, however, I stuck to my guns, explained why and they agreed to stick with the original contract terms.

[funkyd]

I've downloaded the IPSE guide to IR35 to refresh my memory and got an appointment with my accountant.

A thought is that the client needs (rather than simply wishes) me to be here so it's perhaps not as controlling as first thought - it's not as if all the work I do can be done from home so the client maybe has a point. Nobody else can fix the server and they are paying me to be here should anything happen. There is no other resource that could do what I do so there is an expectation that I be here all the time to cover business hours.

What I need to do is tighten up the agreement I have with a Real Arrangements letter and either carry on or bring in additional resource to so that I can be away more easily. Having an additional resource bolsters my IR35 status and means I can go and search for new contracts like a business owner should. I'm IR35 safe, client is even happier because they are getting a better service. Hopefully.

All subject to advice of course. If the client isn't happy well then I will have to consider other options.