employer wanting to offer a contract

[raman]

Hi everyone,

I've visiting the forum regularly the last few weeks and found it useful in answer a lot of my questions about contracting, so thanks!

Now, I've been offered a contract role so I resigned from my permanent position on Friday. My manager asked if I would be interested in a contract position, if they offered it, I said I would consider it. So he discussed the situation with HR today, who are very uneasy about hiring me as a contractor because they are worried I will look like a employee in disguise e.g. I'll be an employee one week and the next week I'll be a contractor.

I like working where I am at the moment and would love to continue and my line manager is keen to continue having me on the project. Can anyone offer any advice how I could work around this?

Cheers.

[cojak]

Title says it all

You can't. You will be a disguised employee.

Welcome to IR35 - if you don't mind paying the extra tax, take the contract with your employer.

[NotAllThere]

The risk falls entirely on you, not on HR... IF the contracts are drafted correctly, and the working practices match the contracts.

I know people who've gone from perm to contract in the same company. So long as everyone (managers, co-workers, HR, purchasing) is fully appraised of the implications of the change in the nature of the relationship, it can work. But as Cojak says, IR35 (which is a tax on you - nothing to do with the client) for this contract would be hard to avoid.

[tractor]

..

The risk falls entirely on you, not on HR... IF the contracts are drafted correctly, and the working practices match the contracts.

I know people who've gone from perm to contract in the same company. So long as everyone (managers, co-workers, HR, purchasing) is fully appraised of the implications of the change in the nature of the relationship, it can work. But as Cojak says, IR35 (which is a tax on you - nothing to do with the client) for this contract would be hard to avoid.

Unless you are a senior civil servant of course

[malvolio]

Just so we're clear here - you're contemplating giving up all employment rights, sick pay, holidays, pension contributions, training and HR support in exchange for more taxes and the abilitiy to be sacked on a moment's notice with no comeback, and your employer is retaining your workat a reduced overall cost and without having to worry about any of the above or pay Employers NICs.

Hey, great deal. Go for it...

[NotAllThere]

Work through a brolly and there's no problem. Don't forget to increase your rate to cover all those this Malvolio mentioned.

[raman]

Thanks for the advice everyone. The contract almost doubles my current permie salary so I think it's worth loosing out on the pension, 25 days paid leave and other small bits.

So how long would I have to wait before I could be employed as a contractor without issue around IR35?

[raman]

Oh, btw I signed the contract I was offered this evening, I start in three weeks time

[pmeswani]

Thanks for the advice everyone. The contract almost doubles my current permie salary so I think it's worth loosing out on the pension, 25 days paid leave and other small bits.

So how long would I have to wait before I could be employed as a contractor without issue around IR35?

I would suggest 1 or 2 years. Could be wrong, and hope some seasoned contractor can clarify.

[Sausage Surprise]

Thanks for the advice everyone. The contract almost doubles my current permie salary so I think it's worth loosing out on the pension, 25 days paid leave and other small bits.

So how long would I have to wait before I could be employed as a contractor without issue around IR35?

FFS..... and it's spelled "losing"