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Permanent To Contracting with Same company but different cli

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Zeon14
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Posts: 26
Joined: Thu May 10, 2012 9:17 am

Permanent To Contracting with Same company but different cli

Post by Zeon14 » Sat Mar 22, 2014 11:46 am

Hi

I joined a company who worldwide is a software and management consultancy but in UK they are only sourcing candidates from market and placing them directly on Client sides. I was hired by them in October 2013 on permanent roles and directly worked on their client office. They used to bill the client on daily basis while paying me a permanent salary of 70K.

The client project finished Feb 24'2014 and I had no project for 3 weeks but was paid to be on BENCH as normal consultant firms do.

I start a new project Tuesday and now I have been offered a Contract offer by my consultancy at 450/day. I am being asked to resign on Monday and join on Tuesday as a contractor on the new client site.

My concerns :
1. I have heard about the IR35 friday to Monday rule. Most probably I am under it due to the way my status is changing however - reading the rules closely , I needed some clarification that because I am with a firm who doesn't have its own work i mean I don't work on project work within my company but always on client site, and given the fact the date I am being converted as a contractor, I am starting at a new client, does that help me having a strong case to be considered outside IR35. As its not the parent company I work at every day so the environment is not same (which is one statement in IR35 ruling), does that help?

2. Is there any measures I can take to stay outside IR35.

3. There are insurances in the market etc but what do they cover you for (Sorry I am a new bie to contracting). Do they cover you for cases like above?

4. Will involving an umbrella company in between make any difference? As of now I was thinking to have my own limited company.

5. Can I ask my employer to make me join as a contractor after 15 days and would that help avoid the Friday - monday rule?

I would really appreciate if you can reply to this ASAP as Monday I have to sign contracts.

Thanks

Wanderer
Diamond Member
Posts: 10511
Joined: Thu Apr 21, 2005 12:46 pm
Ireland

Re: Permanent To Contracting with Same company but different

Post by Wanderer » Sun Mar 23, 2014 10:48 pm

Bin it, 450/day isn't a 70k salary, especially since you are 100% caught by IR35.

1. you are caught

2. Turn it down

3. Yes but not if you 100% caught like this

4. Yes, but you will be a lot worse off.

5. Yes, but it won't make any difference, still IR35 caught....
An chéad stad eile Stáisiún Uí Chonghaile....

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