Inside IR35 and additional work

[CaptainDanger]

I am working under a contract that is inside IR35 under a brolly company and have been offered some extra work which I can bill for separately with a different company. The nature of the additional work is adhoc, around 2 days a week until the end of the year and then I can do 2 or 3 days a week after that for a few months at least. Would it be a good idea to setup a separate limited company, invoice as a sole trader or go through the brolly?

[TheGreenBastard]

It almost entirely depends on what the long term prospects for outside IR35 work billed to a Ltd. is. For a one off part time gig it's hard to imagine using a Ltd. with the overheads would beat just plonking all the extra cash in your pension.

[ladymuck]

For that little work, I'd put it through a brolly and chuck it all in the pension.

[northernladuk]

When are you going to do this extra work when your inside contract, by it's nature, is going to expect you to put 8 hours a day in for your client?

[PerfectStorm]

When are you going to do this extra work when your inside contract, by it's nature, is going to expect you to put 8 hours a day in for your client?

Is that what your manager told you?

Hours and days are a proxy for paying for your expertise and the reality of a role that will ebb and flow somewhere around the mark of a substantial day. A smart and genuinely self-employed contractor would be able to fit this in. :-)

[northernladuk]

Is that what your manager told you?

Hours and days are a proxy for paying for your expertise and the reality of a role that will ebb and flow somewhere around the mark of a substantial day. A smart and genuinely self-employed contractor would be able to fit this in. :-)

But he isn't a genuinely self-employed contractor. He's inside so he will be employed by an umbrella. The role will likely be inside because the client wants to treat him like a perm so 9-5 and expectation to be fully commited. Nothing to do with what my manager said, it will be black and white in his contract.

[Protagoras]

It's not entirely obvious to me whether OP works full time for the umbrella company. If OP has spare time and can pick up additional work, that's a quite reasonable course of action IMHO.

Back to OP's question about the mechanism to undertake the work.

Check the brolly contract for any clauses that might relate to undertaking other work. For example, there may be intellectual property, competition and / or other restrictive clauses including a requirement to notify.

Absent any issues, it's a case of looking at the most cost-effective approach. I tend to agree that a LtdCo is probably not cost effective for part-time work, so would endorse @ladymuck's approach of using a brolly.

[TheGreenBastard]

When are you going to do this extra work when your inside contract, by it's nature, is going to expect you to put 8 hours a day in for your client?

The Iranian morality police have arrived, put your burkas back on everyone...

[BlueSharp]

Stick it via the brolly. Hopefully, you're with a brolly that allows employer contribution into a pension for the most tax-efficient management of the extra cash.

[PCTNN]

I am working under a contract that is inside IR35 under a brolly company and have been offered some extra work which I can bill for separately with a different company. The nature of the additional work is adhoc, around 2 days a week until the end of the year and then I can do 2 or 3 days a week after that for a few months at least. Would it be a good idea to setup a separate limited company, invoice as a sole trader or go through the brolly?

Are you going to be fully transparent and tell both clients that you are also working somewhere else?

If you plan to not tell them, it means you're most likely planning to do something dodgy so my advice is don't.