Returning as contractor

[Diver]

Well just from my extensive reading on this site and several others it appears IR35 is not just about your contract....

If you previously worked at the company and are returning as a contractor to do the same job that you had before well going by what i have read that will put you inside of IR35 unless there are other circumstances that will place you outside?

If they determine that you, the contractor have a contract of service, and are employed on a given contract with the client, then IR35 applies and tax and National Insurance liabilities should be the same as if you were directly employed by the client.

If you, as the contractor are deemed to have a contract for service, then you are considered a genuine self-employed independent contractor or service supplier, IR35 does not apply.

Read the terms of contract very carefully OF & FOR (Marked in bold & underlined) are critical.

[dogzilla]

Well just from my extensive reading on this site and several others it appears IR35 is not just about your contract....

If you previously worked at the company and are returning as a contractor to do the same job that you had before well going by what i have read that will put you inside of IR35 unless there are other circumstances that will place you outside?

[TheFaQQer]

Check with someone who offers insurance against being caught for IR35 - if they would be willing to cover you, then it's a good indicator.

If they say that they'd cover you for any contracts APART from this one, then it's a good sign that you'd be liable for extra tax if caught.

[Sockpuppet]

However my accountant is pretty sure I'm ok, and so are the company involved. I'll just have to trust their judgement...

Becuase they are the people that are going to be left with the tax bill.

[Gros]

The implication is that you have to take 95% orf your gross (less a limited set of expenses) as salary and pay PAYE and NICs on it - no dividends allowed. But surely you knew that already? Because if you don't, I suggest there's probably quite a lot you don't know...

You're absolutely right, the whole thing is a load of jargon to me, which is why I ask on here and pay an accountant!

I know the basics, but I'm afraid every time I try and read articles about these things my brain just kind of clouds over.

However my accountant is pretty sure I'm ok, and so are the company involved. I'll just have to trust their judgement...

[malvolio]

Are you sure? If so, surely that is problematic for me....what are the implications there?

Nope, can't be sure - except that if you are doing much the same role for much the same people at much the same location, it will a bit tricky to demonstrate that you aren't doing a slightly delayed Friday-to-Monday and that puts you inside IR35.

The implication is that you have to take 95% orf your gross (less a limited set of expenses) as salary and pay PAYE and NICs on it - no dividends allowed. But surely you knew that already? Because if you don't, I suggest there's probably quite a lot you don't know...

[OrangeHopper]

No he is not sure.

If you are caught you simply get less in your pocket.

[Gros]

Yeah, I did figure that most agents would say that, but this guy claims another contractor has had it checked out professionaly.

No. You will be inside IR35 though...

Are you sure? If so, surely that is problematic for me....what are the implications there?

[Xenophon]

As a side point, most agencies these days claim "IR35 friendly contracts", but it's probably a good idea to get the contract reviewed once it's in your possession because chances are it won't be "IR35 friendly".

Seconded.

I can't remember the last time an agent didn't say that the contract was 'IR35 friendly'.

[Bluebird]

As a side point, most agencies these days claim "IR35 friendly contracts", but it's probably a good idea to get the contract reviewed once it's in your possession because chances are it won't be "IR35 friendly".

don't forget it's not just the contract that needs to be IR35 friendly - it's the working practice as well...

[chicane]

IR35 friendly contracts

As a side point, most agencies these days claim "IR35 friendly contracts", but it's probably a good idea to get the contract reviewed once it's in your possession because chances are it won't be "IR35 friendly".

[malvolio]

No. You will be inside IR35 though...

[Gros]

Hi all. Just wanted your expert opinions on my situation, to put my mind at rest that this is all ok.

I left a permanent position in January which I had been at for around 3 years. Now, surprise surprise, I've been offered a contract role at the same place. I'm running through a limited company, via an agency who have IR35 friendly contracts, and am to be paid daily on a monthly rolling contract.

Does anyone see anything problematic with that?

Cheers.