How does a FTC affect my Limited Company Status ?

[TheCyclingProgrammer]

FTC are generally (always?) contracts of employment = you could not perform this through YourCo

Could negotiate a similar B2B contract instead, if the client are willing, do it through the company but treat it as inside IR35 and put it through the payroll accordingly? Not sure if there is any benefit to doing it that way mind you (plus you'd have to weigh up against the benefits you'd lose by not being an employee, if any).

[malvolio]

Clients use FTCs because they are scared of being done for employment rights and tax liabilities by rogue contractors. Invariably this is down to Human Remains not having a scoobie about modern contracting nor how to use them as an effective temporary resource.

However, since they are born of fear not science, the chances of turning one into a classic B2B are vanishingly small.

[Barley]

Could negotiate a similar B2B contract instead, if the client are willing, do it through the company but treat it as inside IR35 and put it through the payroll accordingly? Not sure if there is any benefit to doing it that way mind you (plus you'd have to weigh up against the benefits you'd lose by not being an employee, if any).

Why would you need to treat it as within IR35 if you are providing consultancy services?

[northernladuk]

Why would you need to treat it as within IR35 if you are providing consultancy services?

Because the perception of the client is that he is getting a permie, hence the permie FTC. He wants to use the resource as permie, using D&C, not allowing subs and all the other pointers to being outside. Remember, it is working practices that are key. If they client wants a permie and is going to treat you like a permie it doesn't matter what your contract or business setup is, you are a permie.

[TheCyclingProgrammer]

Why would you need to treat it as within IR35 if you are providing consultancy services?

What NLUK says. It sounds like what's on offer is a fixed term employment contract. Putting it through as a B2B contract wouldn't change the realities of the role and the underlying working practices, it would simply enable the OP to pay himself through his Ltd but it would almost certainly be IR35 caught.

It's not necessarily a given that it would be inside, but it sounds like changing the offer from a FTC to a proper IR35 friendly B2B contract AND ensuring the working practices reflect that of a genuine B2B relationship would be a bit if a stretch.

[Sausage Surprise]

What NLUK says. It sounds like what's on offer is a fixed term employment contract. Putting it through as a B2B contract wouldn't change the realities of the role and the underlying working practices, it would simply enable the OP to pay himself through his Ltd but it would almost certainly be IR35 caught.

It's not necessarily a given that it would be inside, but it sounds like changing the offer from a FTC to a proper IR35 friendly B2B contract AND ensuring the working practices reflect that of a genuine B2B relationship would be a bit if a stretch.

With Ltd you'd also pay Employer's NI.
FTC PAYE and it's just Employee's.

[DaveB]

With Ltd you'd also pay Employer's NI.
FTC PAYE and it's just Employee's.

Unless you take the standard contractors route of minimal salary + divi's that means you pay little to no NI either as employer or employee. Certainly less than you;d pay as Employee NI under an FTC.

[Sausage Surprise]

Unless you take the standard contractors route of minimal salary + divi's that means you pay little to no NI either as employer or employee. Certainly less than you;d pay as Employee NI under an FTC.

Ah yes good point

[DirtyDog]

Unless you take the standard contractors route of minimal salary + divi's that means you pay little to no NI either as employer or employee. Certainly less than you;d pay as Employee NI under an FTC.

If you are using the Ltd instead of a FTC, I think you'd have a tough time arguing being outside IR35. In which case you are going to pay the NI anyway.

[DaveB]

If you are using the Ltd instead of a FTC, I think you'd have a tough time arguing being outside IR35. In which case you are going to pay the NI anyway.

A fixed term contract between businesses is a very different thing to a fixed term contract as an employee. Think of it more as a fixed price contract. Your Co. agrees to deliver X by date Y for cost Z with penalties for missed deadlines and bonuses for early completion. Proper business to business arrangements. As I said in my original post, it depends on how flexible the client is willing to be.