Freelance work on the side
+ Reply to Thread
Page 1 of 2 1 2 LastLast
Posts 1 to 10 of 20
  1. #1

    Should post faster


    Join Date
    Mar 2014
    Posts
    122
    Thanks (Given)
    1
    Thanks (Received)
    3
    Likes (Given)
    1
    Likes (Received)
    21

    Default Freelance work on the side

    Hi I've got a question about doing some freelance work in addition to being on a permanent position. It's for a friend of mine.

    This is the situation:

    A friend of mine is a permie for company A but is about to leave (notice handed in) to join company B for another permie role. Company A and B are not competitors and do not even operate in the same industry.

    Company A outsources work to an agency. Is it possible/legal for my friend to engage with the agency and do work for company A on a freelance basis? Nothing is mentioned in the employment contract.

    I really hop you can help this friend of mine

  2. #2

    Contractor Among Contractors

    ladymuck's Avatar
    Join Date
    Sep 2005
    Location
    London
    Posts
    1,894
    Thanks (Given)
    183
    Thanks (Received)
    145
    Likes (Given)
    1008
    Likes (Received)
    475

    Default

    Classic Friday to Monday contractor scenario by the sounds of it
    I reject your reality and substitute my own - Adam Savage
    Me on LinkedIn | 15% off your first year's IPSE membership

  3. #3

    Faqqed Off

    TheFaQQer's Avatar
    Join Date
    Oct 2006
    Posts
    36,493
    Thanks (Given)
    392
    Thanks (Received)
    1387
    Likes (Given)
    3828
    Likes (Received)
    3421

    Default

    Quote Originally Posted by MattZani View Post
    Is it possible/legal for my friend to engage with the agency and do work for company A on a freelance basis?
    Yes it's possible. Yes it's legal.

    Make sure your friend assesses their IR35 situation properly to ensure that they are paying the correct level of tax (at first glance it would appear to be inside IR35 but it might not be).

    If they need advice on getting started, then I would recommend downloading the Be Your Own Boss definitive guide from the IPSE website.
    Best Forum Advisor 2014
    Work in the public sector? You can read my FAQ here
    Click here to get 15% off your first year's IPSE membership

  4. #4

    Should post faster


    Join Date
    Mar 2014
    Posts
    122
    Thanks (Given)
    1
    Thanks (Received)
    3
    Likes (Given)
    1
    Likes (Received)
    21

    Default

    Quote Originally Posted by TheFaQQer View Post
    Yes it's possible. Yes it's legal.

    Make sure your friend assesses their IR35 situation properly to ensure that they are paying the correct level of tax (at first glance it would appear to be inside IR35 but it might not be).

    If they need advice on getting started, then I would recommend downloading the Be Your Own Boss definitive guide from the IPSE website.

    Thanks

  5. #5

    Contractor Among Contractors


    Join Date
    Apr 2015
    Posts
    1,434
    Thanks (Given)
    56
    Thanks (Received)
    119
    Likes (Given)
    810
    Likes (Received)
    651

    Default

    If it's only going to be part-time, and may not last too long, AND there are no significant liability concerns (either because of the type of work or the relationship), it may not even be worth incorporating. It might be easiest to just do it as self-employed, which would leave IR35 out of the picture.

  6. #6

    Super poster


    Join Date
    Jan 2009
    Location
    Near London, UK
    Posts
    3,579
    Thanks (Given)
    40
    Thanks (Received)
    265
    Likes (Given)
    229
    Likes (Received)
    727

    Default

    Quote Originally Posted by WordIsBond View Post
    If it's only going to be part-time, and may not last too long, AND there are no significant liability concerns (either because of the type of work or the relationship), it may not even be worth incorporating. It might be easiest to just do it as self-employed, which would leave IR35 out of the picture.
    I'd agree but if its through an agency there's a high chance they won't contract with somebody who is self-employed. May have to go through the umbrella route.

  7. #7

    TPAFKAk2p2

    mudskipper's Avatar
    Join Date
    Sep 2009
    Location
    Null island
    Posts
    24,999
    Thanks (Given)
    849
    Thanks (Received)
    1451
    Likes (Given)
    6394
    Likes (Received)
    5084

    Default

    Quote Originally Posted by MattZani View Post
    Nothing is mentioned in the employment contract.
    Which one? Your friend will need to check the new contract.

  8. #8

    Old Greg is my bitch's bitch

    northernladyuk's Avatar
    Join Date
    Nov 2011
    Location
    Working the streets of your imagination
    Posts
    8,562
    Thanks (Given)
    1192
    Thanks (Received)
    653
    Likes (Given)
    442
    Likes (Received)
    2421

    Default

    Quote Originally Posted by ladymuck View Post
    Classic Friday to Monday contractor scenario by the sounds of it
    I disagree. The freelancer may be picking up discrete deliverable based work in which case there is no reason IR35 applies. AFAIK Friday to Monday is not in itself a determinant of employment status. It may however be a flag to HMRC.

    If the freelancer is instead picking up some BAU work - perhaps covering holidays - then that probably changes things.
    Where there's muck there's brass.

  9. #9

    Fingers like lightning


    Join Date
    Aug 2008
    Posts
    500
    Thanks (Given)
    2
    Thanks (Received)
    26
    Likes (Given)
    207
    Likes (Received)
    63

    Default

    Quote Originally Posted by northernladyuk View Post
    I disagree. The freelancer may be picking up discrete deliverable based work in which case there is no reason IR35 applies. AFAIK Friday to Monday is not in itself a determinant of employment status. It may however be a flag to HMRC.

    If the freelancer is instead picking up some BAU work - perhaps covering holidays - then that probably changes things.
    It struck me yesterday that D&C can easily be circumvented by a simple agreement of the form:

    1. I give you the work.
    2. You decide how you're going to do it.

    And voila ! Outside IR35.

  10. #10

    I live on CUK

    SueEllen's Avatar
    Join Date
    Nov 2005
    Location
    in the Park
    Posts
    28,387
    Thanks (Given)
    1483
    Thanks (Received)
    1209
    Likes (Given)
    4660
    Likes (Received)
    4364

    Default

    Quote Originally Posted by radish2008 View Post
    It struck me yesterday that D&C can easily be circumvented by a simple agreement of the form:

    1. I give you the work.
    2. You decide how you're going to do it.

    And voila ! Outside IR35.
    Not quite.

    There is a grey area if the client employes permies who are also skilled professionals who do the same role as you as they will also do the work the way they want as frequently managers wouldn't have the knowledge to do D&C in the work they do.

    Therefore to distinguish you from them, you need a schedule of work.
    "You’re just a bad memory who doesn’t know when to go away" JR

+ Reply to Thread
Page 1 of 2 1 2 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Content Relevant URLs by vBSEO 3.6.0 ©2011, Crawlability, Inc.