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Full Time Work and a Contract Inside IR35

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    Full Time Work and a Contract Inside IR35

    I am working in a full time role, but have been offered project work I can do at night, but it is inside IR35 (via umbrella), is there anything I need to be aware of. Obviously I have no problem with paying the extra tax on the second role (that is what I would expect). I am assuming that my day job would just be covered as standard tax via PAYE, and that the secondary role would have the extra tax removed?

    Can the money from the second role be paid direct into my Lc post tax? Would I then end up with paying double taxes?

    #2
    Originally posted by simong31 View Post
    I am working in a full time role, but have been offered project work I can do at night, but it is inside IR35 (via umbrella), is there anything I need to be aware of. Obviously I have no problem with paying the extra tax on the second role (that is what I would expect). I am assuming that my day job would just be covered as standard tax via PAYE, and that the secondary role would have the extra tax removed?

    Can the money from the second role be paid direct into my Lc post tax? Would I then end up with paying double taxes?
    Just use an Umbrella - deemed payments are a world of pain.
    merely at clientco for the entertainment

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      #3
      There's no benefit to be had from putting the money into your Ltd Co as all the taxes will already be deducted.

      Comment


        #4
        Originally posted by simong31 View Post
        I am working in a full time role, but have been offered project work I can do at night, but it is inside IR35 (via umbrella), is there anything I need to be aware of. Obviously I have no problem with paying the extra tax on the second role (that is what I would expect). I am assuming that my day job would just be covered as standard tax via PAYE, and that the secondary role would have the extra tax removed?
        Can the money from the second role be paid direct into my Lc post tax? Would I then end up with paying double taxes?
        If you are able to do the Inside gig in an evening at your own pace why isn't it outside? Are you just pulling the wool over the clients eyes and they think you are doing 9 to 5 for five days a week? It's unusual for an inside gig to be able to be run like a piece of consultancy. Nearly every post we've had about someone doing a second inside gig is them purely taking the piss out the client as they aren't onside and not a bona fide above board agreement.

        What does your contract say about times? It should have them in if it's inside. Again, if it doesn't and you are left to your own devices to deliver a product on time then you should be pushing back for an outside gig. I can't see how they can determine you inside if you aren't even around in the working day to speak to anyone let alone be D&C'd? You are going to be doing 14 to 16 hours days for the forseeable? Ouch.

        Something doesn't add up here but that could just be lack of detail and nothing else.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          Originally posted by northernladuk View Post

          If you are able to do the Inside gig in an evening at your own pace why isn't it outside? Are you just pulling the wool over the clients eyes and they think you are doing 9 to 5 for five days a week? It's unusual for an inside gig to be able to be run like a piece of consultancy. Nearly every post we've had about someone doing a second inside gig is them purely taking the piss out the client as they aren't onside and not a bona fide above board agreement.

          What does your contract say about times? It should have them in if it's inside. Again, if it doesn't and you are left to your own devices to deliver a product on time then you should be pushing back for an outside gig. I can't see how they can determine you inside if you aren't even around in the working day to speak to anyone let alone be D&C'd? You are going to be doing 14 to 16 hours days for the forseeable? Ouch.

          Something doesn't add up here but that could just be lack of detail and nothing else.
          Why should it contain any of the items you list above.

          One big reason for contracts being inside - is because the end client couldn't care less and has gone for the easy and lazy options of not caring. and if the pay is high enough and the work flexible enough I can see why a contractor wouldn't care less either.
          merely at clientco for the entertainment

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            #6
            Originally posted by eek View Post

            Why should it contain any of the items you list above.

            One big reason for contracts being inside - is because the end client couldn't care less and has gone for the easy and lazy options of not caring. and if the pay is high enough and the work flexible enough I can see why a contractor wouldn't care less either.
            It shouldn't I guess but maybe I'm the optimist and it should be done properly as per the reality of the situation. If it's not then challenge it. You are probably right about the client taking the lazy option but that doesn't mean we can't discuss what it should be. We'd be as bad as them if that was the case. It's like the old days when we should have been trying to educate the clients on IR35. Now we have to try educate clients about what constitutes and true outside gig and hopefully some will listen.

            There are enough clients doing it properly for us to open discussions about a contractors obligations in a situation like this and we've enough threads on here about people just taking the piss out of clients re inside gigs so just asking the situation in this one.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

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              #7
              Yeah its basically a bit of a "lazy" option for them as a business, the work will only constitute a few hours in an evening, where I can do some code work (on a code base I have worked on before). Should it really be outside? Probably, but that would mean them changing policy on contractors. It seems to me a lot of companies have gone down the route of saying that all contractors are inside, as it just means less work for them policy and management wise. I have asked about doing direct invoicing like a supplier would, but whoever in the organisation makes these policies won't allow wiggle, which in some ways I understand as it makes it simple for people to understand.

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