Going contract from a permanent role

[Bartlett]

Later this year I will be going freelance. I have the backing of my current employer, and it's likely they'll become one of my main clients once I leave.

There are a few commitments I'd like to see out here and it will probably take three or four months for them to find someone to take over my role.

So the question is: Should I give them a month's notice and switch to working on a monthly contract for the remainder of the time they need me in the office or should I carry on as a salaried employee right 'till the point I leave?

By the end of that period I will be working from home with (hopefully) a fairly diverse range of clients. But for the handover period - if I did go straight to contract - most of my time would be spent with the one company, working on-site.

Any thoughts?

[Bartlett]

I'm vaguely aware of IR35 having worked as a contractor (through an umbrella company) in a previous career. I think things were a lot less lenient then, however.

With regards my current situation, I work for a very small company and I'm on good terms with the directors. I don't think they'd object to me moving to a contract basis if it was legal and prudent.

One downside of my current situation is that I have a pretty minimal holiday entitlement and I'm usually too busy to use it, so being able to claim mileage for my lengthy commute trip to the client's premises could potentially outweigh that if I was only doing it for a reasonably short time. I believe three months is usually the cut off and that should give them time to sort out a replacement. It's also arguable as to whether I will be doing the same job when I supply to them in the future - someone else will be doing my role and I will be doing something related.

That said, it does sound like I might be better off remaining a salaried employee until I go fully freelance.

Edited by Bartlett on Thursday 26th February 15:30