Reply to: Reduce 1 contract to take on another - Opinions

[Contreras]

In practise it depends whether your ex-employer treats it as a genuine b2b relationship or re-hiring you as temp employee - if the former then HMRC can huff and puff all they like. If it bothers you then contract the "ex-permie" gig through an umbrella and adjust the salary/dividends from YourCo accordingly.

It's a completely separate issue to the multiple clients question though. I would echo MF's comments on that point having tried it once, but tempted to try again. Having 2 clients on the go means if one falls through then income doesn't take such a hit and you may also be able to increase workload on the remaining contract(s) to compensate.

[topper]

Cheers Guys, I certainly haven't made my mind up, nor do I come here to justify my decision, but may have to say no to this offer after considering the reasons specified here, will see what the contract says when it lands in my inbox before discounting it.

[northernladuk]

You are new to contracting and it is tough out there. I would get some solid contracts under my belt so I can be a contractor. Having one gig and then going back to your employer will not help your cause once you get back on the bench IMO. Forget the ex employer and be a contractor first.

[BlasterBates]

The fact that this was your ex-employer I would say wouldn't necessarily to count to IR35 mainly because you've been away from your employer for sometime, and I agree with the argument that having two clients at the same time is a huge plus point, I would also push to work from an office, preferably not a home office. You may be able to rent a room in business premises somewhere. Once you've got that I would imagine your IR35 defences would be impregnable. Even better do it fixed price. These sort of arrangements would be much easier to negotiate with a client who knows you and really want to work with you.

It looks like HMRC are beefing up their IR35 investigations so now's a good time to run faster than the other Gnu's.

[JamJarST]

True, cheers!

Just to put a different slant on the original question, what would be the general consensus if the new offer wasn't from an ex-employer?!?!

If the prospective new client was making this part time arrangement an requirement of me securing the full time arrangement, then I think I might be inclined to not accept it. That is just my view on it, I lie to keep my options open and i Might not want to be "pushed around" like that. That is just my gut feel though.

[JamJarST]

Not 'Yours' personally.

I'm not arguing, just reasoning, I just cannot believe that not 1 person would go for this! I'm aware of IR35 risk but am also aware of PCG+ Membership!

No you are arguing, be honest you have already decided to do it and just want us to vindicate your decision.

[topper]

True, cheers!

Just to put a different slant on the original question, what would be the general consensus if the new offer wasn't from an ex-employer?!?!

[nomadd]

Not 'Yours' personally.

I'm not arguing, just reasoning, I just cannot believe that not 1 person would go for this! I'm aware of IR35 risk but am also aware of PCG+ Membership!

With all due respect to the PCG, they won't cover you in any shape or form if they don't think your situation warrants it. And having been a contractor for such a short period of time (as you have) and now going back to work for your permie employer seems to be just the thing the IR would look for (as many posters have pointed out.)

But from your replies, you seem to be certain of your situation - so why create a thread on it? Just simply go with it and see what happens. But, as I mentioned, be prepared for your current client to show you the door. Or maybe not. You won't know until you "go for it."

Contracting really is that simple.

[topper]

Not 'Yours' personally.

I'm not arguing, just reasoning, I just cannot believe that not 1 person would go for this! I'm aware of IR35 risk but am also aware of PCG+ Membership!

[nomadd]

...but am aware it maybe part of 'your' decision process.

My decision process? Unlikely - the last permie job I had was nearly two and a half decades ago!

TBH, I don't see why people like yourself create threads like this? You asked for advice, and many people gave it in good faith. Now you just seem to be intent on arguing with all of them...

[topper]

My advice is , whilst it looks good, take those dollar signs out of your eyes and think about the IR35 perceived implications.

It's not just the immediate dollar signs, it's the longer term work (which I know is there) and the other benefits of closer with no UK travel.

[topper]

This^

And your current client is likely to find someone else when you suggest skipping two days a week to work for another client. Yes, you can ask, but be prepared to walk (or be pushed.)

Agreed on IR35, but lets not get too hung up on it, I will take all steps I can to be outside, but am aware it maybe part of 'your' decision process.

The 2nd point is valid though, but I feel I have a good relationship with the client to suggest it, I will not be playing hardball, and if they are unwilling then the new offer will have to get declined.

[Scoobos]

My advice is , whilst it looks good, take those dollar signs out of your eyes and think about the IR35 perceived implications.

If it was your ex permie place of work then I'd not touch it with a barge pole, irrespective of their hiring / contractor conditions.

When asked the question did you work for X permanently at any time in the past? You have to answer yes - not good.

Just my 2 cents.

[topper]

When you say old permie place, how old do you mean? Going back to an old place you were permie at recently is often considered a red flag for IR35. Have you had your current contract and the new proposed one reviewed for IR35 because you said sure of their status?

I mean the same team at my ex place of employment, different job, defined project though, and they are a Huge Blue Chip with many contractors so the working practices are pretty good.

Yes current contract review and I am happy with my status, can never be 100% but I have taken all precautions I can, and am not dwelling on it!

I am waiting for the new contract with terms etc to review before approaching current.

[topper]

The only downside I found to it was, that it was relentless. With all contracts there are times when you are at 100% and others when you are waiting on people. When you split between 2/3 contracts at a time, the client has a chance to get their tulip together so when you hit each site you are expected to be at 110% because they have prepared for you. I did it for 6-8 weeks before ditiching the idea.

LOL, well the current place is like that, so that would probably happen to me! They are probably wasting at least a day a week of my time by their poor scheduling\responses, which is why I am hoping they will be happy to reduce to 3 days.