Working through the regulations

[LondonManc]

Yes. As previously mentioned, all outstanding invoices will be paid on Friday 31st March, even the one I submit on Friday.

The client has asked me what rate I will accept for a new contract, to keep me on the project, within the guidelines of IR35. They are actually currently seeing if the University is making a blanket decision of will accept any working practices as outside.

Does anyone know what the actual cost of the legislation is in comparison to being outside? Given that I can't claim travel expenses due to being on site for over 2 years; Currently on a day rate of £400. What does it need to be to mitigate being inside IR35?

That depends on the size of your daily expenses. I'd up it to £600 and take it from there.

[malvolio]

Yes. As previously mentioned, all outstanding invoices will be paid on Friday 31st March, even the one I submit on Friday.

The client has asked me what rate I will accept for a new contract, to keep me on the project, within the guidelines of IR35. They are actually currently seeing if the University is making a blanket decision of will accept any working practices as outside.

Does anyone know what the actual cost of the legislation is in comparison to being outside? Given that I can't claim travel expenses due to being on site for over 2 years; Currently on a day rate of £400. What does it need to be to mitigate being inside IR35?

Best estimate is around 30%, certainly not less than 20%. It does depend on your own circumstances of course, plus the willingness of the client to accept a 30% hike for the same service...

[NetContractor]

That depends on the size of your daily expenses. I'd up it to £600 and take it from there.

Is 600 based on anything or just a finger in the air? I am not looking to screw the client over, but want a reasonable figure to complete the project. I am thinking £525 which they would likely pay and would be a 30% increase.

To be fair I am 5 miles from home, so there really are no expenses anyway.

[LondonManc]

Is 600 based on anything or just a finger in the air? I am not looking to screw the client over, but want a reasonable figure to complete the project. I am thinking £525 which they would likely pay and would be a 30% increase.

To be fair I am 5 miles from home, so there really are no expenses anyway.

Why ask someone else then?

£600 is based on a 50% increase. You'll be surprised how much tax will get deducted if you're under IR35.

[LoughriggFell]

Does anyone know what the actual cost of the legislation is in comparison to being outside? Given that I can't claim travel expenses due to being on site for over 2 years; Currently on a day rate of £400. What does it need to be to mitigate being inside IR35?

On Contractor Calculator they have produced a costing for £400 a day outside, would be looking at £498 inside, an increase of 25%.

I have no idea how they have worked it out, or whether its accurate.

[NetContractor]

On Contractor Calculator they have produced a costing for £400 a day outside, would be looking at £498 inside, an increase of 25%.

I have no idea how they have worked it out, or whether its accurate.

Thank you. I have sent an email to my accountant to (hopefully) get an accurate figure.

[TheFaQQer]

Does anyone know what the actual cost of the legislation is in comparison to being outside? Given that I can't claim travel expenses due to being on site for over 2 years; Currently on a day rate of £400. What does it need to be to mitigate being inside IR35?

Have a look at the FAQ for details of what you will need to account for: http://forums.contractoruk.com/publi...ml#post2394879

If you are looking to continue via your own limited company, then you may need to consider what happens to pension contributions. If you are moving to an umbrella then you will almost certainly need to account for the apprentice levy (0.5%) as well as tax and NI. If you are claiming child benefit, then you may need to take that into account if you would now be taking a salary of over £50k.

Only you can really do the sums, but the FAQ should give you a starting point about what you might need to account for.

[FrontEnder]

Don't forget to factor in 2 years worth of tax and NI that HMRC will go after.

If you've been operating outside and then suddenly inside after April 5th with the same PS organisation, it makes you a prime target for investigation, IMO.

[NetContractor]

Have a look at the FAQ for details of what you will need to account for: http://forums.contractoruk.com/publi...ml#post2394879

If you are looking to continue via your own limited company, then you may need to consider what happens to pension contributions. If you are moving to an umbrella then you will almost certainly need to account for the apprentice levy (0.5%) as well as tax and NI. If you are claiming child benefit, then you may need to take that into account if you would now be taking a salary of over £50k.

Only you can really do the sums, but the FAQ should give you a starting point about what you might need to account for.

Wow that makes for grim reading. I think the best decision is screw the project and leave to greener pastures. Sadly not the best for the client, but I DID advise them on this and they ignored me. BTW, the HR departments decision for inside is fundamentally wrong, but like so many PSCs they are making the (technically illegal) decision to force all contractors inside. I think their decision has left me with little option.

[NetContractor]

Don't forget to factor in 2 years worth of tax and NI that HMRC will go after.

If you've been operating outside and then suddenly inside after April 5th with the same PS organisation, it makes you a prime target for investigation, IMO.

I'm not so sure I buy that. I appreciate there is no guarantee one way or the other, and HMRC can do whatever the hell they like, however one thing I have insisted is the current contract is terminated on Friday one way or the other. So if I am here next week it will be under a new contract entirely. Going back, I can prove lack of control, and other factors.