From Permie to Contactor but for same company?

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oraclesmith replied

20 April 2007, 23:01
I did this - or something like it. In my opinion, this gives you a reasonable way of dealing with IR35 issues providing you put the effort in. The key is in the contract. If you are in this situation, there is no employment business involved. If the previous employer you're signing the contract with is on-side, you should be able to get your own contract made up with the right clauses in to ensure there is a risk-reward balance like a business and not an employee.

It maybe works better if you are just direct to the end-client, but you have an added complication because you'll be a effectively a consultant for your client, working on one of their accounts. I went direct to the end-client and they signed the contract that MY solicitor drew up, which is always a good thing.

Another tip is to change your attitude to your colleagues and workplace. Make it clear that you're an external now and keep a respectable distance from employee stuff like team meetings and so on. I reiterate the fact I'm an external consultant at every opportunity.
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Bluebird replied

19 April 2007, 13:03
Originally posted by SimpleLad

The Role is completely different its just the hiring company is the same.

Also it pays 4 times what I'm on now

If the "new" role is outside IR35 then there is no problem, however you need to be confident that the role is outside [ and not just the contact ].
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SimpleLad replied

19 April 2007, 12:58
The Role is completely different its just the hiring company is the same.

Also it pays 4 times what I'm on now
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Hart-floot replied

19 April 2007, 10:47
Originally posted by SimpleLad

Hi All,

Do you see any legal problems with this? Has anyone else returned to their employer as a contractor?

Thanks In Advance

IR35!!
Going from permie to contractor for the same employer was (supposedly) one of the reasons for its introduction. Be careful!
Leave a comment:
malvolio replied

19 April 2007, 10:41
IR35 - ever heard of it...? You'll be well inside and paying full PAYE and NICS on 95% of your earnings.

You're giving up employment rights and a lot of benefits. Have you done the costings?

Working for the same people doing the same job for much the same net income, not really worth all the hassle, is it?

So I wouldn't, but then I have a business already!
Leave a comment:
SimpleLad started a topic From Permie to Contactor but for same company?

19 April 2007, 10:11
From Permie to Contactor but for same company?

Hi All,

I currently work for a major IT service company and I'm looking to go contracting again.
I've been offered a contract on one of my current employers accounts. Working as a contractor for the company I currently work for.

Do you see any legal problems with this? Has anyone else returned to their employer as a contractor?

Thanks In Advance
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