Originally posted by MrButton
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Any reason not to consult on the side for a while?
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'CUK forum personality of 2011 - Winner - Yes really!!!! -
Originally posted by MrButton View PostAnd if the working practices are outside then he will be deemed outside.
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.Comment
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Originally posted by northernladuk View PostIt 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.Comment
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Originally posted by Burns View PostThing 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.
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.Comment
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