How many hours/days a week are 'allowed'?

[Rdp81]

I have recently been made redundant and am using this as an opportunity to enter the world of BA/PM contracting. I've found this forum invaluable in bringing myself up to speed.

How many hours/days a week is my company 'allowed' to invoice for, in a working week?

For example, consider this scenario. My ltd company secures a 3 month contract with Client A for 37.5 hours a week. Client B (my old employer who have recently made me redundant) then offer my company 15 hours a week which they agree can be done from home, in the evenings/at weekends at a times of my choosing.

Is there anything legally stopping my ltd company from taking on both contracts?

I understand that there may be IR35 implications if I take on any work from Client B, given that they are my most recent employer. However, would I be IR35 caught in this scenario, given the nature of the working conditions?

If there is a first time thread that answers these questions, please point me in the direction!

Thanks

[malvolio]

I have recently been made redundant and am using this as an opportunity to enter the world of BA/PM contracting. I've found this forum invaluable in bringing myself up to speed.

How many hours/days a week is my company 'allowed' to invoice for, in a working week?

For example, consider this scenario. My ltd company secures a 3 month contract with Client A for 37.5 hours a week. Client B (my old employer who have recently made me redundant) then offer my company 15 hours a week which they agree can be done from home, in the evenings/at weekends at a times of my choosing.

Is there anything legally stopping my ltd company from taking on both contracts?

I understand that there may be IR35 implications if I take on any work from Client B, given that they are my most recent employer. However, would I be IR35 caught in this scenario, given the nature of the working conditions?

If there is a first time thread that answers these questions, please point me in the direction!

Thanks

Go to www.pcg.org.uk and download the Guide to Freelancing, plus take a look on the right ----->

But you need a mindset change. You're not "allowed" to do anything (and who will do the "allowing anyway"?); it's your business and you set the rules. The only legal constraints that might apply are in whatever contractual terms you agree to be bound by.

IR35 is on a per contract basis, so one might be caught and another not caught (or even, in a recent case, start off not caught then become caught. Still haven't got my head around that one...). As always it depends on the three key factors, at least one of which has to actually exist in reality as well as in the written Ts&Cs. But read the guides, you have no idea how much you don't know.

Also, if you're running two (or more) parallel contracts, be very certain you are giving both clients full value.

And a final point. If your ex-employer wants you back to do much the same work, how does that make your role redundant? There are serious tax implications if you get that wrong (like 40% tax on your redundancy pay for a start) so be very clear you know what you're into.

[Rdp81]

Thanks Malvolio- this is very helpful and answered my question. Downloading the PCG guide as we speak. I'll also be seeking legal advice on the tax implications of returning to a former employee who has made me redundant.

[GillsMan]

Thanks Malvolio- this is very helpful and answered my question. Downloading the PCG guide as we speak. I'll also be seeking legal advice on the tax implications of returning to a former employee who has made me redundant.

Excellent step. Not only does it potentially impact your redundancy money, but there's a reasonable chance you'll be within IR35 on that contract (especially if you're doing a similar role, and definitely if your old employer doesn't treat you like a true contractor and tries to dictate things like how you do your job). Try to get someone who is an expert in the contracting market to comment on your circumstances.

[Rdp81]

Thanks GillsMan. I am resigned to the fact that this contract will be within IR35, and am working off that assumption.

[Old Greg]

Thanks GillsMan. I am resigned to the fact that this contract will be within IR35, and am working off that assumption.

Why so? This may be one of the circumstances that led to IR35, but that does not mean that you are necessarily caught. Advise your former employer that your focus is now entirely on the deliverables agreed, and that you will no longer be part of through company's day to day management structure. Make sure your contract reflects this.