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Any reason not to consult on the side for a while?

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    #31
    Originally posted by MrButton View Post
    And if the working practices are outside then he will be deemed outside.
    Many contractors can't act like anything but an employee even after a few different clients, let alone walking back in to the same place and sitting at the same desk. Very very unlikely the working practices will be able to change enough and stay changed to defend against an investigation.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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      #32
      Originally posted by MrButton View Post
      And if the working practices are outside then he will be deemed outside.
      HMRC : Why did you stop being a permie on Friday and become a contractor on Monday?

      You : I got a couple of gigs on the side and decided to go freelance.

      HMRC : So if you hadn't done that you'd still be here doing this job as a permie?

      You : Yes.

      HMRC : You're inside IR35.
      "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

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        #33
        Originally posted by northernladuk View Post
        It really depends on the situation. Yes it is possible to be outside if you take up a different gig that is advertised and you can detach yourself from what you do now and apply yourself as a new entity to the new gig. The way the OP put it though indicates just changing the remuneration method while carrying on doing the same thing. Yes there is quite an assumption there but that's how I, and I assume DaveB read it. There is either a need for a contractor or not. To make one for an employee is just a sham.
        Oh yeah, I'm under no illusions, it would be a very far stretch for me NOT to be inside IR35 if I decided to go perm->contractor over a weekend. Hopefully I'd be able to ramp up work that is outside IR35 fairly quickly though to make up for that.

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          #34
          Originally posted by Burns View Post
          Thing is, with the permie role, the company I work for is now part of a much larger company with lots of red tape, the pressure has ramped down significantly vs what it used to be and has been this way for about a year. Great for allowing personal growth but not exactly a challenging environment. It's much more project work now and less "my server is melting/on fire" calls.
          For those declaring a contract with OP's current employer as absolutely inside IR35, take a deep breath, slow down, and read the above.

          OP, if I'm in your place and really wanting to make the jump, I'm proposing two contracts with your employer.

          Contract #1: This is a monthly retainer in which you agree to provide up to X hours a month for those "my server is melting" calls. This is inside IR35. Pay yourself a salary and make your pension contributions out of this one.

          Contract #2: This is what has changed since you became an employee. It's not what you were hired to do, anyway. But the thing is, you wanted to go independent, but you are willing to do projects for them as an independent contractor. You agree a rate, general terms in the contract, and an attached schedule of work -- listing the projects you are going to complete. You can add to the schedule of work if you complete the existing projects, they want you to do more, and you agree to them.

          HMRC comes along and you DON'T say, "I got a contract on the side and decided to go independent, so they changed me to a contractor." You DO say, "I wanted to go into business for myself. They asked me to stick around and provide support on a part time basis, and I'm operating that contract inside IR35. They also had some defined projects they wanted me to do, so we agreed terms and defined the projects."

          Join IPSE, and probably buy TLC35 from QDOS. If you have the right contract and a signed Confirmation of Working Agreements, they'll cover you.

          The fact that the work has become a lot of projects makes it easier for you to split it between inside IR35 and outside, and doing so probably makes it less likely you'll have trouble. The very act of doing that tells them things HAVE changed, and it also tells them you know what you are about.

          It sounds like they have been bought by an American company? If so, and you can sign contracts with the American parent, that could help, too.

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