Swapping contracts/ Ending new contract

[MMiller]

Hi, i have recently started a contract in London on good money but didn't think how much the commute from Southampton would impact my work/life balance. The client company doesn't believe in flexible working and due to the work load I have my days are 13 hours minimum. I know I chose it but for similar money I can work close to home.
So what do i do to get out in a respectable manner?
as I have gone through an agency I think the notice period is 30 days. I have found a fellow PM who can replace me ( he was actually the runner up for the job).
Do you think if I replaced myself and did hand overs etc will I still get paid for my work and be allowed a shorter notice period?
Also are there any implications from a tax perspective if I chose to go PAYE again after only one month of contracting?

Thanks in advance for your advice... Just don't want to annoy the client or agency...

[northernladuk]

Two ways.One option is to give the notice required, take a bit of crap from the agent and client and then bow out if it is possible. You could also try negotiate a quicker exit. Obviously lesson learnt here is to not sign a bloody contract with a 30 day notice period on. That is just ridiculous. Did someone not point out that 30 days + is also a pointer towards inside IR35? I could be wrong.

You do however mention a substitute which could work a bloody treat for you. Read up on RoS or Right Of Substitution and it's relation to IR35. It is as close to water tight get out as you can get at the moment. Exercise your RoS, get the other guy in under your company and keep invoicing them. Obviously sort a way out of paying him. Client is happy, agent happy, you happy, other guy happy and HMRC with not a leg to stand on. Super win.

I am assuming you have a clue what IR35 is of course

Also are there any implications from a tax perspective if I chose to go PAYE again after only one month of contracting?

Not so much implications but will need considering. Not a big issue though. Did you get an accountant? Getting out of your yearly fee with the accountant may be the biggest issue.

Thanks in advance for your advice... Just don't want to annoy the client or agency...

Bit late for that. You can't have your cake and eat it. You committed to a contract that everyone expects you to honour. To bin it in less than month is a pretty poor carry on so someone in the chain is going to be understandably unhappy.

[TheFaQQer]

Hi, i have recently started a contract in London on good money but didn't think how much the commute from Southampton would impact my work/life balance. The client company doesn't believe in flexible working and due to the work load I have my days are 13 hours minimum. I know I chose it but for similar money I can work close to home.

Have you tried searching the forum for how to terminate a contract? I think it might have been discussed once (or possibly twice) before.

So what do i do to get out in a respectable manner?
as I have gone through an agency I think the notice period is 30 days. I have found a fellow PM who can replace me ( he was actually the runner up for the job).

What does the contract say? If you are actually going to terminate the contract, then what does the contract say that you need to do? Work that out, and then do it.

Alternatively, if your contract has a RoS clause, and you have someone that can replace you, then don't terminate the contract, invoke that clause and get the substitute in. You need to check whether their rate will impact your VAT registration if you are on FRS. If the contract says that the client has approval, then you need to see whether they will approve your substitute - particularly since they have already rejected them once.

Do you think if I replaced myself and did hand overs etc will I still get paid for my work and be allowed a shorter notice period?

If you have done the work, then you should be paid for that work. Whether they will let you leave early is a matter of negotiation.

Also are there any implications from a tax perspective if I chose to go PAYE again after only one month of contracting?

Yes. Particularly around expenses that you have already claimed.

Just don't want to annoy the client or agency...

So stay, then. However you leave, it's going to annoy the client and the agency.

[TheFaQQer]

Not so much implications but will need considering. Not a big issue though.

*cough*
Permanent place of work? Expenses?
*cough*

[northernladuk]

*cough*
Permanent place of work? Expenses?
*cough*

For a month? Isn't going to kill him. Getting the agent to pay him is going to be a ball ache though

Saying that, jacking it so early and talking about going PAYE I am wondering if he even opened a LTD.

[TheFaQQer]

For a month? Isn't going to kill him. Getting the agent to pay him is going to be a ball ache though

Saying that, jacking it so early and talking about going PAYE I am wondering if he even opened a LTD.

It's not going to kill him, but it's something that he needs to be aware of. If he jacks it in, then the expenses claimed need to be sorted; if there is no intention to contract anywhere else, then the expense claims need to stop.

So, even if there is an intention to do more work on this one contract and then stop and go permie elsewhere, then the expenses are still an issue.

[northernladuk]

OP... are you through a brolly or LTD?

[Old Greg]

Tell them that you have been prepared to be flexible and work 13 hour days on a short term basis but that your standard company professional day is 8 hours and that is what you are able to offer on a routine basis, although you will be delighted to show some flexibility on an ongoing basis in times of particularly high workload. If they find that arrangement difficult to work with, you will as a goodwill gesture waive any notice period and associated payments so they can find a supplier that more closely aligns with their business requirements. In any case, you will be happy to be contacted for a period of time to hand over to the new contractor.

[malvolio]

Tell them that you have been prepared to be flexible and work 13 hour days on a short term basis but that your standard company professional day is 8 hours and that is what you are able to offer on a routine basis, although you will be delighted to show some flexibility on an ongoing basis in times of particularly high workload. If they find that arrangement difficult to work with, you will as a goodwill gesture waive any notice period and associated payments so they can find a supplier that more closely aligns with their business requirements. In any case, you will be happy to be contacted for a period of time to hand over to the new contractor.

Well that will work. What about travel time? Clients tend not to pay you to get there: if it's a 5 hours round trip that's not their problem. Also a PWD means just that; do any work in a 24 hour period on their behalf and you charge a set fee. The trick is to ensure the one hour days exceed the 23 hour ones. How long you think your day is is immaterial.

Perhaps I'm biased: I spent years commuting that much every day to work in the Smoke so I was earning London rates and living in rural Somerset.

[Old Greg]

Well that will work. What about travel time? Clients tend not to pay you to get there: if it's a 5 hours round trip that's not their problem. Also a PWD means just that; do any work in a 24 hour period on their behalf and you charge a set fee. The trick is to ensure the one hour days exceed the 23 hour ones. How long you think your day is is immaterial.

Perhaps I'm biased: I spent years commuting that much every day to work in the Smoke so I was earning London rates and living in rural Somerset.

The guy wants out. He's found a replacement. The bridges will be burned so do it in the best way possible that you won;t find yourself penalised and move on.

PWD is all very well but ultimately, if the client demands more than a standard 8 hour day every day and never shows flexibility, then I would consider that 'taking the piss' to use the technical term in my company policy and I would consider finding a way out. It is also about direction and control. You're on site for 10 hours (or whatever) every day because the client tells you to? Not me.