Going back to perm- IR35

[loden]

I decided to accept a perm role at my last place where I worked as a contractor for more than 2 years. It's basically the same role.

Do you think there is a danger of being caught inside IR35 for the years I worked there as a contractor? I used to have an insurance with Qdos. Will it be a good idea to keep it for the next year?

Any advice appreciated!

[northernladuk]

Always keep your insurance for at least a year whatever your situation. In your position, because of the increased risk I'd possibly think about keeping it a bit longer.

IMO opinion yes there is a greater chance of you losing an investigation if you went contract to perm. Look at the noise in the PS where HMRC 'may' be coming after those people previously outside and are now deemed inside doing the same role.

Although there is no direct evidence I do believe the 2 years will give them more to chew on. The longer you are there the more you start to look like an employee unless you work hard at showing you aren't. All of a sudden you become and employee and it looks like a bit of a slam dunk case to the. It's not but you can see what I mean.

All that said keep your insurance up to date, gather as much evidence as you can re your working practices being outside (photocipy your contractor pass, emails stopping you going to stuff because you are a contractor and so on) and just get on with I'd say.

[BoggyMcCBoggyFace]

Yes its risky, I have friends who did the same and HMRC asked questions as mentioned in other posts HMRC now seem to be tying up NI numbers provided to agents were contracting with NI numbers when they go perm, that's how the people I knew think its happened ands it been hinted that's the case. People can say Im talking b*lltulip as others suggested but everyone thought they were giving the DOTAS number for just reporting reasons then look what happened years after.

[LondonManc]

Yes its risky, I have friends who did the same and HMRC asked questions as mentioned in other posts HMRC now seem to be tying up NI numbers provided to agents were contracting with NI numbers when they go perm, that's how the people I knew think its happened ands it been hinted that's the case. People can say Im talking b*lltulip as others suggested but everyone thought they were giving the DOTAS number for just reporting reasons then look what happened years after.

Agreed; I'd imagine that just having your current role become perm is a risk. That said, if there is a good letter on working practices from the client (now employer) to explain that it was originally a project, but working practices were to be changed if loden remained due to the project ending. Do you think it's a reasonable approach to ask client to help him cover as many bases as possible, in the sense that working practices trump contract?

[SueEllen]

Agreed; I'd imagine that just having your current role become perm is a risk. That said, if there is a good letter on working practices from the client (now employer) to explain that it was originally a project, but working practices were to be changed if loden remained due to the project ending. Do you think it's a reasonable approach to ask client to help him cover as many bases as possible, in the sense that working practices trump contract?

But HMRC will still start digging and it's the digging that's stressful.

[LondonManc]

But HMRC will still start digging and it's the digging that's stressful.

I don't disagree - I would imagine the key thing in all of it is whether the role is transitioning to perm or the person is moving into a different role in the company. For example, you've come in as a specialist DBA but get offered the post of Data Services Team Lead.

[loden]

Always keep your insurance for at least a year whatever your situation. In your position, because of the increased risk I'd possibly think about keeping it a bit longer.

IMO opinion yes there is a greater chance of you losing an investigation if you went contract to perm. Look at the noise in the PS where HMRC 'may' be coming after those people previously outside and are now deemed inside doing the same role.

Although there is no direct evidence I do believe the 2 years will give them more to chew on. The longer you are there the more you start to look like an employee unless you work hard at showing you aren't. All of a sudden you become and employee and it looks like a bit of a slam dunk case to the. It's not but you can see what I mean.

All that said keep your insurance up to date, gather as much evidence as you can re your working practices being outside (photocipy your contractor pass, emails stopping you going to stuff because you are a contractor and so on) and just get on with I'd say.

In that case, will it matter how long I'll stay at the perm job? Let's say I leave after 6 months to continue contracting?

[northernladuk]

In that case, will it matter how long I'll stay at the perm job? Let's say I leave after 6 months to continue contracting?

I don't follow sorry.

Gotta think about how you shut your company down and deal with the tax if you are considering come back so soon as well.

[loden]

I don't follow sorry.

Gotta think about how you shut your company down and deal with the tax if you are considering come back so soon as well.

I will keep the LTD open for now, as I have the feeling I'll be coming back to contracting. Will that somehow help my case? Also, I didn't immediately went from contracting to perm. There was a gap of around 4 months or so.

[northernladuk]

I will keep the LTD open for now, as I have the feeling I'll be coming back to contracting. Will that somehow help my case? Also, I didn't immediately went from contracting to perm. There was a gap of around 4 months or so.

Don't worry about it. It is what it is and nothing is going to change it now. Get your evidence filed, keep insurance for a year and get on with it. HMRC could be very busy with low hanging fruit with the PS carry on.