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Abandon principles and take £800 inside IR35?

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    Abandon principles and take £800 inside IR35?

    I’ve held fast since the IR35 changes and not taken an inside role. Just been offered 800 inside (12 month duration) and wondering if I should take it or not? My outside role is about to end and this role is on the table already.

    Hold tight for an outside or bend over for HMRC and take inside?


    #2
    How the bloody hell would we know whether you should take it or not? It's your daft principles at play here, not ours.

    THat said, having principles that stop you taking gigs that still puts you in the top 0.x% of earners is a little bit daft IMO. Letting the tax tail wag your income dog isn't smart. With such narrow thinking I'd guess you've not bothered to research how to mitigate the tax and make the most of an inside gig either. Extra month on the bench waiting for an outside gig and you are down on the year so your 'principles' are a bit misguided.
    Last edited by northernladuk; 1 June 2022, 13:07.
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      #3
      Originally posted by ConsultingTechArchitect View Post
      I’ve held fast since the IR35 changes and not taken an inside role. Just been offered 800 inside (12 month duration) and wondering if I should take it or not? My outside role is about to end and this role is on the table already.

      Hold tight for an outside or bend over for HMRC and take inside?
      Take it - the next year and beyond are going to be very tough.

      If you end up out of work you may need some of that cash you seem to resent paying to HMRC.
      Last edited by TheDude; 1 June 2022, 13:09.

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        #4
        Inside is a load of old cobblers for us 1% of contractors who actually tried to operate as pseudo-businesses, but it's shooting yourself in the foot if you don't take it with nothing else on the horizon.

        I've an Inside contract on a bit more than that, and the deductions are fairly eye-watering but earning >>> not earning imo. £800 PAYE is probably the equivalent of £550 Outside so not too shabby anyway.

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          #5
          Depends on what your principles are and why you are abandoning them. If it's about not taking Inside roles and you've never been offered one before when you've had no better offers on the table, then it's not a principle, it's a fact.

          Also depends on how much you have in your warchest.
          And depends on the likelihood of you being offered something better in a timeframe that is advantageous
          And depends on your financial management skills
          And depends on your tax situation and how you have managed your outside roles
          And depends on what your burn rate is, and whether £800 a day inside is going to exceed it suitably, or not.
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            #6
            Would I take it? No.

            Should you take it? No idea, obviously.

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              #7
              It depends on what the outside rate you are used to is - If it is 800 a day outside then 800 a day inside is no thanks

              If on the other hand 650 outside vs 800 inside the numbers get closer
              Last edited by NowPermOutsideUK; 1 June 2022, 15:48.

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                #8
                Principles or put food on the table. Seems straight forward to me.

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                  #9
                  There is more to it than the money.


                  What do you do with your Ltd?


                  You're going to stop being able to claim expenses for that company, are you ready for that?

                  What if the client now imposes employee-like terms on your engagement? Do you have mutuality of obligation now? Can you take leave when you want?

                  How about working from home - what if they decide they want to get their moneys worth from you?

                  The taxation is just the beginning of the decision-making.

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                    #10
                    Originally posted by PerfectStorm View Post
                    What if the client now imposes employee-like terms on your engagement? Do you have mutuality of obligation now? Can you take leave when you want?
                    Mutuality of Obligation is not about leaving when you want. It's about being offered other work after the initial assignment has ended. An employee expects to be given another project, a contractor shouldn't.
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