Reply to: Agency contract signed but I want to stay now

[northernladuk]

I have been contracting for less than 24months and I plan to stop claiming any T&S expense once I hit 24months.

Wrong. You stop claiming as soon as you expect to be there 24 months. If you've done 13 months and you sign a 12 month contract you cannot claim expenses for the entire 12 month gig because you expect to be there over 24 months. Not when you hit 24 months, when you know you will be there that long which is the beginning of the contract that goes past it.

But back to my original question tho, what's the best approach to my other client who I have already signed and returned the contract? The notice period of that contract is one month.

I guess I would just be open about it and politely tell them that I prefer to stay with my current client. Hopefully they will cancel the contract and not cause any issue.

Any other suggestion?

I'd say this and see what happens. Then come back to us if it goes south.

[TheFaQQer]

But back to my original question tho, what's the best approach to my other client who I have already signed and returned the contract? The notice period of that contract is one month.

How about:

Just be honest with the agent. Tell them the situation, say that you will be invoking the notice clause in your contract (presume you have one)

or

Give notice on your new contract immediately.

Or ask them if then want to pay loads more to take you on.

--

Any other suggestion?

Why, yes:

You need to read the guides on IR35

You're welcome

[Hong888]

I have been contracting for less than 24months and I plan to stop claiming any T&S expense once I hit 24months.

But back to my original question tho, what's the best approach to my other client who I have already signed and returned the contract? The notice period of that contract is one month.

I guess I would just be open about it and politely tell them that I prefer to stay with my current client. Hopefully they will cancel the contract and not cause any issue.

Any other suggestion?

[WordIsBond]

So you're not claiming expenses now? Remind me to avoid you're accountants.

You know the 24 month rule is in force when you expect to be in same location for 24 months. i.e. before 24 months?

Must admit you've lost me on the last bit. The location is relevant for the 24 month rule i.e. same location and all that but not for IR35!!!

Avoid his accountants? All his clients are in the same location, so he's not claiming T&S expenses. Sounds perfectly appropriate to me, and probably what his accountant told him.

But yeah, he does need to brush up on IR35 or he's likely to find himself caught some day.

[northernladuk]

Oh dear indeed...

[psychocandy]

Appreciate all the advice. I don't plan to claim any expense (travelcard mainly as I work in central London, and lunches) in a few months time as I would have worked as contractor for 2yrs.

I believe the distance of clients site is one of the deciding factor for IR35. My clients are all pretty much in the London so I rather not to risk it and stop claiming these expenses, whether I change client or not.

So you're not claiming expenses now? Remind me to avoid you're accountants.

You know the 24 month rule is in force when you expect to be in same location for 24 months. i.e. before 24 months?

Must admit you've lost me on the last bit. The location is relevant for the 24 month rule i.e. same location and all that but not for IR35!!!

[psychocandy]

Just to clarify, I went direct to this new client but they use an agent for contractor, so I am signing a contract with the agent and suppose the agent will sign a separate contract with the client. :-)

You've considered the 24 month rule?
I don't think this is a issue for my client. I know a lot of contractors have stayed for over 24months. But thanks for bringing this to my attention

Oh dear - how long have you been contracting?

First off suggest you google 24 month rule. Could cost you a bit in expenses you can no longer claim.

[MrMarkyMark]

Yes that's correct. I have to fill in all the info before they can start the prescreening. But I have been told that I don't have to wait for this to be completed before I start on site which is quite strange for me.

Perfectly usual with a consultancy.

[TheFaQQer]

I believe the distance of clients site is one of the deciding factor for IR35.

You need to read the guides on IR35 then because that's not a deciding factor (or even a factor) at all for IR35.

[Hong888]

Correct. The 24 months is your tax issue, nothing to do with the client. I am not surprised the IR35 question was skipped as well. I smell an enormous level of naivity on the OP's side here so really needs to start learning quickly.

Appreciate all the advice. I don't plan to claim any expense (travelcard mainly as I work in central London, and lunches) in a few months time as I would have worked as contractor for 2yrs.

I believe the distance of clients site is one of the deciding factor for IR35. My clients are all pretty much in the London so I rather not to risk it and stop claiming these expenses, whether I change client or not.

[northernladuk]

This doesn't mean what you think it means. NLUK was talking about the HMRC 24 month rule and not being able to claim T+S expenses.

Correct. The 24 months is your tax issue, nothing to do with the client. I am not surprised the IR35 question was skipped as well. I smell an enormous level of naivity on the OP's side here so really needs to start learning quickly.

[b0redom]

You've considered the 24 month rule?
I don't think this is a issue for my client. I know a lot of contractors have stayed for over 24months. But thanks for bringing this to my attention

This doesn't mean what you think it means. NLUK was talking about the HMRC 24 month rule and not being able to claim T+S expenses.

[BrilloPad]

Yes that's correct. I have to fill in all the info before they can start the prescreening. But I have been told that I don't have to wait for this to be completed before I start on site which is quite strange for me.

Personally I would not have given notice until pre-screening was completed. It took 3 months last time. Seems to get longer each year.

However it has now worked in your favour.

[Hong888]

Did you say prescreening has not yet been started for the new contract anyway?

Yes that's correct. I have to fill in all the info before they can start the prescreening. But I have been told that I don't have to wait for this to be completed before I start on site which is quite strange for me.

[BrilloPad]

No I haven't yet. I have explained to my manager my intention to stay provided that a new contract with new rate and extended end date is written and signed. Then I'll go back to the new agency/client but I won't hand in my notice without signing a new contract here first.

Did you say prescreening has not yet been started for the new contract anyway?