Ways of working

[ekim]

Newly signed up here, but was a contractor though my own company for over 10 years in the past (pre-IR35 days). This may have been asked before (links to answers welcome) but a quick search didn't help me

I was thinking of retiring from my perm position, but have been asked to stay on and possibly cut down my days to 3 or 4 a week. This has an attraction, as that's still more than enough to live on and put the annual limit into my company pension - and delay drawing down pension funds

Having heard this, my former boss who is now CTO at a FTSE 100 has asked if I'd be interested in doing some consulting there - interim management stuff for 1-2 days a week

Now ideally I would do this through a limited company again - and probably not take any income or dividends this financial year. My current employer is OK with holding external directorships but taking other PAYE employment might be tricky. I have contacts at reputable consulting companies that would probably act as intermediaries - for a cut. I know the next step is to ask the FTSE what they can offer, but I'd prefer to go into that conversation knowing what's possible and preferable.

Any advice, ideally based on similar situations?

ps: the FTSE uses contractors and looks to be blanket-inside - as they are approaching me, I would hope to negotiate for right of substitution, but that's not guaranteed

[cojak]

Newly signed up here, but was a contractor though my own company for over 10 years in the past (pre-IR35 days). This may have been asked before (links to answers welcome) but a quick search didn't help me

I was thinking of retiring from my perm position, but have been asked to stay on and possibly cut down my days to 3 or 4 a week. This has an attraction, as that's still more than enough to live on and put the annual limit into my company position - and delay drawing down pension funds

Having heard this, my former boss who is now CTO at a FTSE 100 has asked if I'd be interested in doing some consulting there - interim management stuff

Now ideally I would do this through a limited company again - and probably not take any income or dividends this financial year. My current employer is OK with holding external directorships but taking other PAYE employment might be tricky. I have contacts at reputable consulting companies that would probably act as intermediaries - for a cut. I know the next step is to ask the FTSE what they can offer, but I'd prefer to go into that conversation knowing what's possible and preferable.

Any advice, ideally based on similar situations?

ps: the FTSE uses contractors and looks to be blanket-inside - as they are approaching me, I would hope to negotiate for right of substitution, but that's not guaranteed

Friday to Monday contractor - I’m afraid that you’ll never get away with a Ltd outside IR35 on that contract.

Although you could and then take a gamble with HMRC not catching you - but with the information that agencies have to give to HMRC these days, it's not a gamble that I would take.

[northernladuk]

Having heard this, my former boss who is now CTO at a FTSE 100 has asked if I'd be interested in doing some consulting there - interim management stuff for 1-2 days a

ps: the FTSE uses contractors and looks to be blanket-inside - as they are approaching me, I would hope to negotiate for right of substitution, but that's not guaranteed

Your old boss is asking for you by name so not a chance they'll allow substitution. Negotiating RoS just for YOU is kind of not how it works if you get me.

Also the rules have changed now. The client makes the assessment of the role now, not you. If they don't generally allow RoS then you are done. Having it in the contract means nothing now.

[cojak]

Your old boss is asking for you by name so not a chance they'll allow substitution. Negotiating RoS just for YOU is kind of not how it works if you get me.

Also the rules have changed now. The client makes the assessment of the role now, not you. If they don't generally allow RoS then you are done. Having it in the contract means nothing now.

Very true - because I was thinking about the MSC mess I had slipped into 'old' IR35 rules (which the OP wouldn't have passed even then).

[ekim]

Thanks both, that's sort of what I feared. There isn't an agency involved - does that suggest that using a known intermediary consulting company might be the best route?

[eek]

Thanks both, that's sort of what I feared. There isn't an agency involved - does that suggest that using a known intermediary consulting company might be the best route?

Nope because it would make no difference....

[ekim]

ps: not Friday to Monday, I'd be doing 1 - 2 days week on average while employed elsewhere. I'd also be doing international travel that I funded myself up-front then ideally invoiced for

[cojak]

ps: not Friday to Monday, I'd be doing 1 - 2 days week on average while employed elsewhere. I'd also be doing international travel that I funded myself up-front then ideally invoiced for

Well, that's water under the bridge because of the new rules. And you'd be out of pocket for expenses as well as being caught if HMRC go after your client for your tax and NI.

You could still take that gamble of course - just be prepared if HMRC says 'No'...

[ekim]

Thanks again - I don't have a feel for the best way forward, but I'm better equipped for the upcoming discussion

[mudskipper]

If you chuck it all into your pension, then inside IR35 not an issue?