Contract v fixed term

[chopper]

Your OH's case was one of sex discrimination which is slightly different to other people who are on fixed term contracts and dumped "just because".

https://www.gov.uk/fixed-term-contra...dterm-contract

If a contract isn’t renewed
This is considered to be a dismissal, and if the employee has 2 years’ service the employer needs to show that there’s a ‘fair’ reason for not renewing the contract (eg, if they were planning to stop doing the work the contract was for).

Workers have the right:

* not to be unfairly dismissed after 2 years’ service - for employees who were in employment before 6 April 2012, it’s 1 year’s service
* to a written statement of reasons for not renewing the contract - after 1 year’s service

They may be entitled to statutory redundancy payments after 2 years’ service if the reason for non-renewal is redundancy.

[jamesbrown]

Is that the BBC one that then links the general Public Sector one? I don't think this is relevant to this situation. That is unless his client is a PS organisation which the OP doesn't mention. The fact he mentions placing an order on his company which they can't unless it's through GCloud I am assuming its not a PS gig.

If it's not then I can't see why this shouldn't fall under the same rules and Friday to Monday contracting. The role is obviously a permie one because they want him as a permie so is the OP prepared to re-account for the whole gig and pay his tax back as if he was always inside IR35? Looking at the role and where it is going it's not a contract role so should be inside from day one.

Either that or he's taken out IR35 insurance before he started and is going to rely on that and start praying to whatever god he has.

It's absolutely relevant:

Why the IR35 assault on the BBC is a sign of things to come :: Contractor UK

There's nothing about this article that is confined to PS. I can absolutely see why there's a risk in transitioning from contracting to PAYE at the same client (without a significant change in working practices, which would be the point of investigating). This is the corollary of F2M. Obviously, it could be a perfectly legitimate transition when coupled with a change in working practices, as in the F2M scenario (which, contrary to popular belief, isn't reflected in the ITEPA legislation at all; this was nothing more than a press release). However, if there isn't a significant change in WP, the relationship is more likely to be one of false self-employment, whether from F2M or contracting to PAYE.

[Lance]

I have been contracting for a couple of years now on a decent day rate; the client I am working for wants me until 2020; and wants me on a fixed term contract BUT on a higher rate.

He wants me to advise him on how much increase I would be looking for.

If I were to accept; how much would I need to increase my rate to allow for the loss of expenses, IR 35 (inside), PAYE etc, loss of efficiency etc.

If the client was to place the order on my company and not me directly does that still make it a fixed term contract?

The client is trying to make you a permie. End of.
Perhaps this is what you want?
Here's a possibility. Consider it but not as an FTC. Take the uplift (people suggest 30% so try that). Insist that it wasn't one contract till 2020. Get a separate contract for each project and try your best to keep outside IR35 (storing the extra cash just in case, and getting some QDOS IR35 insurance).

If the client wants you so much they'll pay extra surely you're the one with the bargaining power. Just carry on outside IR35 with more money knowing they want you till 2020. That's GOOD business.
And if at any point you think you are no longer outside IR35 switch to inside (you've already had an extra 30% since now and got another 12 months of expenses).

[emranio]

Probably the case, either that or the person discussing it with him at client didn't mean to call it what he called it?

I think you're right; i don't think he meant to say fixed term contract; I have already been contracting for 2 years in the same position.

The role will change from one job title to another.

Its government work; i doubt they would want me as a sudo civil servant.

What options could i put the him? remain as a contractor? They want to deal with my Ltd company directly to cut out the agency; hence they are happy to increase my rate.

[emranio]

The client is trying to make you a permie. End of.
Perhaps this is what you want?
Here's a possibility. Consider it but not as an FTC. Take the uplift (people suggest 30% so try that). Insist that it wasn't one contract till 2020. Get a separate contract for each project and try your best to keep outside IR35 (storing the extra cash just in case, and getting some QDOS IR35 insurance).

If the client wants you so much they'll pay extra surely you're the one with the bargaining power. Just carry on outside IR35 with more money knowing they want you till 2020. That's GOOD business.
And if at any point you think you are no longer outside IR35 switch to inside (you've already had an extra 30% since now and got another 12 months of expenses).

Its one long programme till 2020.

Other very similar programmes in different parts of the forest will extend beyond 2020 and with my recently gleamed experience, it may be an 'easy' transfer at a later date.

I don't think he meant to say fixed term contract; I have already been contracting for 2 years in the same position.

The role will change from one job title to another.

Its government work; i doubt they would want me as a pseudo civil servant (FTE)

What options could i put the him? remain as a contractor? They want to deal with my Ltd company directly to cut out the agency; hence they are happy to increase my rate.

[MrMarkyMark]

I think you're right; i don't think he meant to say fixed term contract; I have already been contracting for 2 years in the same position.

The role will change from one job title to another.

Its government work; i doubt they would want me as a sudo civil servant.

What options could i put the him? remain as a contractor? They want to deal with my Ltd company directly to cut out the agency; hence they are happy to increase my rate.

You know after next April you are almost definitely IR35 caught, right?

[emranio]

You know after next April you are almost definitely IR35 caught, right?

no, didnt know that, what if my role title changes? still caught?

[MrMarkyMark]

no, didnt know that, what if my role title changes? still caught?

Yup.

[northernladuk]

no, didnt know that, what if my role title changes? still caught?

[LondonManc]

I think you're right; i don't think he meant to say fixed term contract; I have already been contracting for 2 years in the same position.

The role will change from one job title to another.

Its government work; i doubt they would want me as a sudo civil servant.

What options could i put the him? remain as a contractor? They want to deal with my Ltd company directly to cut out the agency; hence they are happy to increase my rate.

OK, so you need to confirm with client that there is no danger of the agent pursuing you for loss of earnings (in terms of a handcuff rule).

Sounds like they want to take you on as a consultancy rather than a person - this allows you to sub-contract parts of it but there may well be other aspects that you need to consider. Personally I'd engage a contract lawyer because this is a totally different beast. If I'm signing up for something potentially lucrative and committing to it for four years, I'd want to make sure that it's definitely lucrative. Figure out your all in rate - you'll be inside IR35, so up your rate 30% and then factor in expenses, plus spreading the cost of the lawyer over 3 years (£10 per day ish should cover it).

There are a few people who will definitely be able to give you good advice on here - GillsMan is one that springs to mind.