Current permco raised "would you like to contract for us"... IR35? Contract?

[mudskipper]

It's not impossible to be outside IR35 with your ex-permanent employer, but you would need to be happy you were 100% bullet proof. If you're basically doing the same job, then it's a no-no.

[matty]

You know, this lad might actually be COTBAC!

Dammit can't find what COTBAC stands for grrrrrr. Must. Resist. Asking.

Ah feckit, go on I'll take the bait, what does it stand for??

[northernladuk]

It's not impossible to be outside IR35 with your ex-permanent employer, but you would need to be happy you were 100% bullet proof. If you're basically doing the same job, then it's a no-no.

It is in this case. He will be contracted to carry on doing his job until they get a replacement. It's the epitome of what IR35 was made for.

[matty]

Yeah under no illusion on that, it will be ir35. Which in some senses makes it easier on this way as I know I have to get a good enough day rate to allow for that. If they can't do the day rate then I'll be off to something else and they can find another contractor to fill in (one who isn't perm with them and can be outside ir35!)

[LisaContractorUmbrella]

As others have said, you would have a hard job convincing HMRC that you were outside IR35 on this one. If this is your first time contracting and the contract would only be for about 3 months then an umbrella company is a good option for you. If everything goes pear shaped and you are back in permiedom after 3 months it's much less hassle to leave the employment of an umbrella company than to shut down a Ltd Co. Saying that, after April, you would not be able to claim travel and subsistence expenses so you would need to think about that in rate discussions.

oh and COTBAC means cut out to be a contractor - coming from NLUK that was a compliment

[northernladuk]

As others have said, you would have a hard job convincing HMRC that you were inside IR35 on this one.

Shum mishtake shurely (hic)

[LisaContractorUmbrella]

Shum mishtake shurely (hic)

Shhhhh

[eman]

If the OP were to take up this contract anyway - both accepting the fact that it would place them within IR35 and making appropriate arrangements for tax accordingly - would it be a fair assumption that there was an increased risk of investigation/more scrutiny from HMRC for any future contracts for which the OP undertakes and claims to be outside of IR35?

Fantastic forum by the way

[northernladuk]

If the OP were to take up this contract anyway - both accepting the fact that it would place them within IR35 and making appropriate arrangements for tax accordingly - would it be a fair assumption that there was an increased risk of investigation/more scrutiny from HMRC for any future contracts for which the OP undertakes and claims to be outside of IR35?

Fantastic forum by the way

Nope not really.. He's following the rules of the legislation so should make no difference to the chances of him getting investigated. HMRC want all gigs to be inside so if anything it should make it less likely but it probably won't make a difference. He's more likely to draw attention to himself by changing shareholdings too often, missing VAT & Tax deadlines and just running his affairs involving HMRC badly.

[eman]

Nope not really.. He's following the rules of the legislation so should make no difference to the chances of him getting investigated. HMRC want all gigs to be inside so if anything it should make it less likely but it probably won't make a difference. He's more likely to draw attention to himself by changing shareholdings too often, missing VAT & Tax deadlines and just running his affairs involving HMRC badly.

Fair enough. And Yup...as a permy looking to make the transition soon (currently saving up to roughly 6-9 months worth of living expenses - and researching on CUK in every spare moment) I am trying to adopt an attitude from day 1 whereby my choosing a gig or it's financial viability will not be dependent on the difference in my take home between being inside or outside IR35.