Changing to Ltd half way through contract

[badger7579]

I'm currently with Giant having been in my current contract since mid June but I'm in the process of starting up my own Ltd. I just wanted some advice on how to transfer from Giant to my new Ltd as I believe my current contract will probably put me in IR35.

Obviously I would like to have the contract reworked to put it outside IR35 if possible but I guess the agency wont be too happy with this and as my current extension doesn't finish until beginning of December I'm wondering if I should leave it till then and try to negoiate a new contract as I'm sure I'll get another 3 month extension.

The other thing I'm wondering about is the fact that I've been working for the client for 6 months already with Giant (which as far as I know automatically puts you inside IR35 as it's PAYE) and then switching to a Ltd which I want to be outside of IR35. Sorry I know its a lot of questions but any advice would be appreciated.

[Epiphone]

Get your contract checked over by Bauer&Cotterell. You can do this now if you want.

Change to putting the income through the Ltd when you extend. Don't turn up on client site the day after your current contract ends without it being sorted or you're deemed to be keeping the old terms.

[Sausage Surprise]

Arrange with the pimp to pay into your company bank account - get your last payment from Giant THEN ask Giant for your P45. Simple, but DO NOT ask Giant for your P45 before they've paid up to date or you'll have a right job getting them to cough up.

[Bluebird]

If you are changing from Giant to Ltd you need to get a new contract anyway - why not get it outside IR35 at the same time ?

One point of caution - IR35 investigation are NOT ONLY about contracts - it's about the way you work as well.

The contract can say OUTSIDE but if the working practices don't support this then you are stuffed.

What are your r&r ?

[badger7579]

Cheers for the advice. I'll get my contract check asap.

Bluebird what do you mean R&R??

[TheFaQQer]

The other thing I'm wondering about is the fact that I've been working for the client for 6 months already with Giant (which as far as I know automatically puts you inside IR35 as it's PAYE) and then switching to a Ltd which I want to be outside of IR35. Sorry I know its a lot of questions but any advice would be appreciated.

Being paid through PAYE does NOT put you inside IR35 - it makes it irrelevant, which is completely different. You could move to a Ltd company and be inside IR35 or outside IR35, so you need to check what the contract and working conditions are like to see whether you are in or out.

Regardless of being in or out, if you are going to contract for a while, then a Ltd company will be better for you than an umbrella.