employer wanting to offer a contract

[raman]

I think I may not have been clear in my explanations.

So I'm currently in a permie job with Company A. I started looking for a contract position and was offered with Company B. Now, I resigned from Company A, during the following discussions with Company A they considered hiring me as a contractor but this now seems very unlikely for now (they may consider me 6 months down the line for example). Meanwhile, I've signed the contract with Company B.

I've signed up with Company B through a LTD that I've setup and the contract has been offered through an agent.

I hope this clarifies everything...

Yeah, my reading around IR35, contracting has been 'light'. It's something I need to understand much better over the coming weeks.

[northernladuk]

Oh, btw I signed the contract I was offered this evening, I start in three weeks time

Have you signed directly? How are they paying you? Did you set up as LTD or via Umbrella?

Just aside... If my employer was suddently very eager to sign me up to contract I would be VERY worried.. You have just handed a golden egg to your (now) client to bin you with no notice and no redundancy at the drop of a hat.

If I was you I would be expecting the boot very soon.

[northernladuk]

Thanks for the advice everyone. The contract almost doubles my current permie salary so I think it's worth loosing out on the pension, 25 days paid leave and other small bits.

So how long would I have to wait before I could be employed as a contractor without issue around IR35?

As long as you drop your permie head and start making even the slightest of efforts to understand your situation as a Limited Company offering services to your client. Looking at the terminology you are using such as the one highlighted it is going to be a very long time.... and it will never be with your ex employer doing the same job.

Read some guides on contracting, particularly IR35, understand them and then start applying them to your position.

IMHO you will never do it in the set up you are in.

[Sausage Surprise]

Thanks for the advice everyone. The contract almost doubles my current permie salary so I think it's worth loosing out on the pension, 25 days paid leave and other small bits.

So how long would I have to wait before I could be employed as a contractor without issue around IR35?

FFS..... and it's spelled "losing"

[pmeswani]

Thanks for the advice everyone. The contract almost doubles my current permie salary so I think it's worth loosing out on the pension, 25 days paid leave and other small bits.

So how long would I have to wait before I could be employed as a contractor without issue around IR35?

I would suggest 1 or 2 years. Could be wrong, and hope some seasoned contractor can clarify.

[raman]

Oh, btw I signed the contract I was offered this evening, I start in three weeks time

[raman]

Thanks for the advice everyone. The contract almost doubles my current permie salary so I think it's worth loosing out on the pension, 25 days paid leave and other small bits.

So how long would I have to wait before I could be employed as a contractor without issue around IR35?

[NotAllThere]

Work through a brolly and there's no problem. Don't forget to increase your rate to cover all those this Malvolio mentioned.

[malvolio]

Just so we're clear here - you're contemplating giving up all employment rights, sick pay, holidays, pension contributions, training and HR support in exchange for more taxes and the abilitiy to be sacked on a moment's notice with no comeback, and your employer is retaining your workat a reduced overall cost and without having to worry about any of the above or pay Employers NICs.

Hey, great deal. Go for it...

[tractor]

..

The risk falls entirely on you, not on HR... IF the contracts are drafted correctly, and the working practices match the contracts.

I know people who've gone from perm to contract in the same company. So long as everyone (managers, co-workers, HR, purchasing) is fully appraised of the implications of the change in the nature of the relationship, it can work. But as Cojak says, IR35 (which is a tax on you - nothing to do with the client) for this contract would be hard to avoid.

Unless you are a senior civil servant of course

[NotAllThere]

The risk falls entirely on you, not on HR... IF the contracts are drafted correctly, and the working practices match the contracts.

I know people who've gone from perm to contract in the same company. So long as everyone (managers, co-workers, HR, purchasing) is fully appraised of the implications of the change in the nature of the relationship, it can work. But as Cojak says, IR35 (which is a tax on you - nothing to do with the client) for this contract would be hard to avoid.

[cojak]

Title says it all

You can't. You will be a disguised employee.

Welcome to IR35 - if you don't mind paying the extra tax, take the contract with your employer.

[raman]

Hi everyone,

I've visiting the forum regularly the last few weeks and found it useful in answer a lot of my questions about contracting, so thanks!

Now, I've been offered a contract role so I resigned from my permanent position on Friday. My manager asked if I would be interested in a contract position, if they offered it, I said I would consider it. So he discussed the situation with HR today, who are very uneasy about hiring me as a contractor because they are worried I will look like a employee in disguise e.g. I'll be an employee one week and the next week I'll be a contractor.

I like working where I am at the moment and would love to continue and my line manager is keen to continue having me on the project. Can anyone offer any advice how I could work around this?

Cheers.