switching to contracting for current employer(inside IR35)

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Wanderer replied

20 March 2013, 17:56
Yeah, it's a bit like breaking up with your girlfriend but still going around there for a shag every now and then. It's going to end up in tears.

Why not just get a proper outside IR35 contract....
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northernladuk replied

20 March 2013, 13:40
Can I ask you why you would do this? You are a contractor now so go be a contractor. There is more than enough work out there without having to go inside with ex perm employers IMO.
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egrep started a topic switching to contracting for current employer(inside IR35)

20 March 2013, 13:17
switching to contracting for current employer(inside IR35)

Hi everyone, occasional lurker/newbie here. I've worked as a contractor(or should I say, as a permie-tractor) a couple of times through an umbrella company previously and during a short-ish stint in the sun(Australia, where I'm currently on holiday).

Has anyone here worked for a previous or current employer as a contractor inside IR35? I've done a search through old threads and saw a few about working for old/current employers, however, they were mostly about defending their position as being outside IR35, so I'm curious to know if anyone has actually decided to just take on the work within IR35 and adjusted their rates accordingly.

I've reviewed my options and the type of work I'd end up doing if I were to contract for my current employer where I'm a full-time permie, and there's no way to take it outside of IR35. I have an hourly rate in mind with NI, tax rates and umbrella service fees accounting for IR35 that would potentially be attractive to my employer(compared to other sub-contractors they've taken on before).

Attraction of this arrangement from my employer's point of view:
- they can save money by not having to pay for benefits like holidays and pension
- there are weeks where there are roadblocks from 3rd-party suppliers and other departments that causes pauses in projects where they can cut my hours to just 8 that week or even 0(happens at least once a month), which I'd be more than okay with as I have warchest that will last me to the end of the year, and from speaking from old contacts here in Australia, a possible second stint in the sun may be on the horizon(the work for my current employer can be done remotely). I'm also keen on having some time off to study or do non-IT work part-time just for a change of pace.

Interested to hear your experiences and advice on what pitfalls there would be aside from it not being the most tax-efficient of arrangements!
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