IR35 when going from Perm to Contract
Discussion
New movement in my becoming a contractor...
My current employer is suggesting I stay but as a contractor not a permy on a potentially higher rate than the new contract would have been on!
Are there any problems with regard to tax when doing this? I've heard it causes a few IR35 issues.
Cheers
My current employer is suggesting I stay but as a contractor not a permy on a potentially higher rate than the new contract would have been on!
Are there any problems with regard to tax when doing this? I've heard it causes a few IR35 issues.
Cheers
Big topic.
IR35 can be a problem but careful wording of contracts backed up by adherence to the terms of the contract should ensure that the dangers and pitfalls of IR35 are avoided.
Don't forget, IR35 only applies if you are operating through your own limited company (a Personal Service Company in Inland Revenue speak). It does not apply if you are working for yourself in your own right.
Drop me an e-mail if you want any further details.
>> Edited by Eric Mc on Monday 15th August 12:05
IR35 can be a problem but careful wording of contracts backed up by adherence to the terms of the contract should ensure that the dangers and pitfalls of IR35 are avoided.
Don't forget, IR35 only applies if you are operating through your own limited company (a Personal Service Company in Inland Revenue speak). It does not apply if you are working for yourself in your own right.
Drop me an e-mail if you want any further details.
>> Edited by Eric Mc on Monday 15th August 12:05
You might struggle with moving from perm to contract with the same company as it's one fo the key things IR35 was supposed to catch.
Having more than one source of income i.e. another project/contract would be a good route to avoiding the tax.
You might struggle with moving from perm to contract with the same company as it's one fo the key things IR35 was supposed to catch.
Having more than one source of income i.e. another project/contract would be a good route to avoiding the tax.
PCG (Professional Contractors Guild) are very active in fighting IR35 and have retained legal bods and experts to advise members on this and loads of other contracting issues. I should get round to joining really!
Iain
>> Edited by iaint on Monday 15th August 12:39
Having more than one source of income i.e. another project/contract would be a good route to avoiding the tax.
You might struggle with moving from perm to contract with the same company as it's one fo the key things IR35 was supposed to catch.
Having more than one source of income i.e. another project/contract would be a good route to avoiding the tax.
PCG (Professional Contractors Guild) are very active in fighting IR35 and have retained legal bods and experts to advise members on this and loads of other contracting issues. I should get round to joining really!
Iain
>> Edited by iaint on Monday 15th August 12:39
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