Reply to: Ways of working

[ekim]

Can't you just work inside IR35 at the second place? If you're working for a FTSE100 CTO, I'd hope you be on at or near £1000/day?

Hopefully above. But I can hold an external directorship alongside my perm position, I don’t think I am allowed a second PAYE role

[d000hg]

Yes, remain permanent at current company and looking for a model to do consulting on the side

I'm a bit unclear why everyone thinks you'd so obviously be inside IR35. Doing odd bits of consultancy on the side doesn't seem like an obvious catch. I may have missed a detail?

[edison]

Can't you just work inside IR35 at the second place? If you're working for a FTSE100 CTO, I'd hope you be on at or near £1000/day?

[ekim]

I appreciate you folks jumping on here to answer my questions

[ekim]

Yes, remain permanent at current company and looking for a model to do consulting on the side

[d000hg]

Were you saying you would do both things as a contractor? I initially read it that you'd remain permie on reduced hours at the current place while also contracting at a second company you don't currently work at but the answers suggest I misunderstood?

[ekim]

If you chuck it all into your pension, then inside IR35 not an issue?

Pension contributions already maxed out at current employer at £40K, that needs to be at least £25K to get full matching and reduces tax/NI here

[malvolio]

Very true - because I was thinking about the MSC mess I had slipped into 'old' IR35 rules (which the OP wouldn't have passed even then).

Minor detail, but an officer of one company acting as an officer (aka occupying a substantive post, of which director is one) for another for pay has to be paid net of tax. Not IR35 but Companies Act rules. Net result is the same, of course.

[mudskipper]

If you chuck it all into your pension, then inside IR35 not an issue?

[ekim]

Thanks again - I don't have a feel for the best way forward, but I'm better equipped for the upcoming discussion

[cojak]

ps: not Friday to Monday, I'd be doing 1 - 2 days week on average while employed elsewhere. I'd also be doing international travel that I funded myself up-front then ideally invoiced for

Well, that's water under the bridge because of the new rules. And you'd be out of pocket for expenses as well as being caught if HMRC go after your client for your tax and NI.

You could still take that gamble of course - just be prepared if HMRC says 'No'...

[ekim]

ps: not Friday to Monday, I'd be doing 1 - 2 days week on average while employed elsewhere. I'd also be doing international travel that I funded myself up-front then ideally invoiced for

[eek]

Thanks both, that's sort of what I feared. There isn't an agency involved - does that suggest that using a known intermediary consulting company might be the best route?

Nope because it would make no difference....

[ekim]

Thanks both, that's sort of what I feared. There isn't an agency involved - does that suggest that using a known intermediary consulting company might be the best route?

[cojak]

Your old boss is asking for you by name so not a chance they'll allow substitution. Negotiating RoS just for YOU is kind of not how it works if you get me.

Also the rules have changed now. The client makes the assessment of the role now, not you. If they don't generally allow RoS then you are done. Having it in the contract means nothing now.

Very true - because I was thinking about the MSC mess I had slipped into 'old' IR35 rules (which the OP wouldn't have passed even then).