Permie to contract same company

[Diestl]

Is it considered taboo to change from permie to contractor in the same company, it's a small company with some contractors and some permies. If a permie was seen to be as compentent as the contractors could he negotiate this?


Thanks

[MarillionFan]

No and then yes.

Please give address so I can invoice for this advice.

Yours

MF Consultancy

[Bovvered]

Ir35

[malvolio]

Or to expand on that cryptic advice, it's called "Friday to Monday" and is seen by Hector as purely a tax-avoidance device with no commercial benefit, and is precisely what IR35 is meant to stop.

Net result is you get a bit more take-home for a short while, then a tax investigation, then a big tax bill. Meanwhile, you've lost all your employment rights, holiday pay, sick pay, promotion options, yada-yada-yada... Negotiate a pay rise instead.

[The Lone Gunman]

My 2 penneth.

Friday to Monday converts are an obvious target for Hector.

However: If you can show a business case then you should be OK.

If you have taken over a significant area of your clients business then you may be OK. Particularly if you sell the same services elsewhere. e.g. If you took on all support services for the IT depertment, particularly if you negotiated a fixed price annula fee then you would be fine.

It is complicated.
If you are doing exactly what you were doing before then it is a bad thing.