Is this inviting IR35 investigation?

[HeadlessChicken]

Currently sub contracted to end client while working on a 'Fixed Term Contract' for a software integrator. i pay NI and PAYE via the integrator firm.

FTC up for renewal, Client wants me to stay. The integrator firm also. I am not at all interested renewing with the existing permie style pay structure.

There's a possibility that my LTD co. can sign a contract with a sister concern co. of the integrator - on day rate while I work for the same client.

Is this model going to put my new contract inside IR35? A new contract with a co. working for the same end client as I used to do before?


TIA
HC

[northernladuk]

So you are doing same job with same client as FTC but with LTD setup so effectively only changing your payment method for the purpose of minimising tax. I would say hell yes... at end of day though all depends on the contract and you negotiating working conditions to be outside IR35.

It won't invite an IR35 investigation but won't go well when you are randomly picked/dobbed in it/whatever other methods of catching you....

[HeadlessChicken]

So you are doing same job with same client as FTC but with LTD setup so effectively only changing your payment method for the purpose of minimising tax. I would say hell yes... at end of day though all depends on the contract and you negotiating working conditions to be outside IR35.

Thanks for the prompt response NLUK. Noted the point on contract wording and working practice.

Even though my existing FTC contract is with existing integrator while the new gig would be my LTD co. going into contract with a different company? i can understand that i am eventually working for the same client but wouldn't the fact that i will be invoiced by a different company in the new contract from the one i am getting monthly payments right now?

[TheFaQQer]

Even though my existing FTC contract is with existing integrator while the new gig would be my LTD co. going into contract with a different company? i can understand that i am eventually working for the same client but wouldn't the fact that i will be invoiced by a different company in the new contract from the one i am getting monthly payments right now?

It makes no difference.

You will be doing exactly the same job for the same people, and the only reason you are going through a Ltd is to reduce your tax burden.

As well as having IR35 friendly work-practices, you also need to make sure that the client does not think of you as an employee any more. That's a significantly harder change to pull off.