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Post-April contract options

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    Post-April contract options

    I finished with my current client last Fri, as I didn't wish to remain as PAYE and jeopardize the near-3 years I've been with them.

    They've always stated they wanted me to remain within the wider organisation and have now come back with an 'offer'. They're looking for guidance on what would be acceptable and how it should be implemented such that its fair to both parties. They will then run it past their Contracts/Legal team.

    Major points are:

    - offboard with current client and work for the parent company instead
    - I'm currently direct with client, no agency or intermediary involved, and that will remain the case once MyCo Ltd contracts with ParentCo
    - role change - genuine change, not paper exercise, from BA to advisor and pre-sales client discussions, so completely different
    - move from full time to part-time basis
    - days/hours not known, but anything from 4-10 days per month is the expectation, but this is dependent on client demand, etc and is variable and not guaranteed
    - payment terms will be delivery/milestones based and not day rate
    - I will be working with some existing clients but from a different perspective, plus new and prospective clients

    One thing I need to look into is a letter of working practices agreed between both parties.

    How does this look from an IR35 perspective post-April?

    I've contacted a few well known advisors and awaiting their feedback but wouldn't mind hearing your thoughts on the above.

    Separately, I'm interviewing with other clients for permie/PAYE/contract roles with a view to working on these on a part-time basis, assuming they're in agreement.

    Decided to take a couple of weeks off whilst kids are off for half term so not in a rush but would prefer to get the contract sorted.

    Any advise greatly appreciated.

    thanks

    #2
    Originally posted by ContractorBanking View Post
    How does this look from an IR35 perspective post-April?
    It really doesn't matter what it looks like to you or to us, rather to the supply chain above your PSC, and mainly to the client who issues the SDS and to the Fee Payer that takes on most of the risk once the SDS is issued (client and Fee Payer are the same thing in your example). If they issue an SDS that indicates the contract is outside, then no worries, the risk is not on YourCo (absent fraud, which is not applicable here).

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      #3
      Originally posted by jamesbrown View Post

      It really doesn't matter what it looks like to you or to us, rather to the supply chain above your PSC, and mainly to the client who issues the SDS and to the Fee Payer that takes on most of the risk once the SDS is issued (client and Fee Payer are the same thing in your example). If they issue an SDS that indicates the contract is outside, then no worries, the risk is not on YourCo (absent fraud, which is not applicable here).
      The fact the OP is still talking old school IR35 and doesn't get the above is rather worrying.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Originally posted by jamesbrown View Post

        It really doesn't matter what it looks like to you or to us, rather to the supply chain above your PSC, and mainly to the client who issues the SDS and to the Fee Payer that takes on most of the risk once the SDS is issued (client and Fee Payer are the same thing in your example). If they issue an SDS that indicates the contract is outside, then no worries, the risk is not on YourCo (absent fraud, which is not applicable here).
        Thanks for the feedback.

        So, in practical terms, is it a case of:

        - draft new contract between MyCo and ParentCo (using Bauer & Cottrell or QDOS)
        - getting ParentCo to issue SDS with outside determination

        Sounds like that is all that needs to be agreed (easier said than done but the willingness is there on both sides).

        Anything else that would strengthen the case?


        thanks again

        Comment


          #5
          Rather than fabricating things to make it look outside, you really need to have a proper and honest assessment of your working practises. If your client is amenable, the discussion needs to be frank with honest scenario testing of SDC, RoS, MOO. The paperwork means nothing if the way you're working doesn't pass muster.

          Comment


            #6
            Originally posted by ContractorBanking View Post

            Thanks for the feedback.

            So, in practical terms, is it a case of:

            - draft new contract between MyCo and ParentCo (using Bauer & Cottrell or QDOS)
            - getting ParentCo to issue SDS with outside determination

            Sounds like that is all that needs to be agreed (easier said than done but the willingness is there on both sides).

            Anything else that would strengthen the case?


            thanks again
            Yes, sure. If the client has any sense, then they'll want to ensure that your WPs are clearly outside (assuming they are seeking to issue an SDS that confirms it), but your goal is to get an outside determination in an SDS. In terms of strengthening the case, it's really for your client to determine what risk they're willing to accept, but the WPs that are (far) outside IR35 are pretty clear by now.

            The alternative is that you go through an umbrella, for example, and that they pay you significantly more to account for that.

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