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Leave Employment and start back self employed - gap needed?
I am currently an employee but have decided to go freelance. My current employer has agreed, i am currently seconded out and they will benefit more than if i just leave and i need to use a framework supplier to stay in my role, so my plan is to become a sub-consultant with my current employer.
My question is, how do i do this and avoid IR35?
My employer has suggested i hand in and work my notice, then have a 2 week break before going back as a sub-consultant, will this preclude me from IR35.
I know there are many other issues around IR35 but its just this aspect that i am looking to find opinions on.
My question is, how do i do this and avoid IR35?
My employer has suggested i hand in and work my notice, then have a 2 week break before going back as a sub-consultant, will this preclude me from IR35.
I know there are many other issues around IR35 but its just this aspect that i am looking to find opinions on.
- Contact in PM
FreelanceUK
Messages count : 29Likes count : 0Registration : 30 October 2006Hi SRC
This question has been answered here for you Freelancers' Questions: Can a 2-week gap beat IR35? :: Freelance UK
The Tories have today pledged to review IR35 should they win. Mark Prisk said: “...we recognise and value the contribution of freelancers and we are well aware of the way in which the current Government has treated them. We want to deal with this problem comprehensively, in a way which provides us all with a lasting solution, not a short term fix.” - Contact in PM
damonrichardson@mac.com
Messages count : 4Likes count : 0Registration : 31 January 2010This was precisely why IR35 was brought in. Employees were leaving on a friday and starting back on the monday as a contractor so as to avoid paying NI etc.
You can work for your former employer as sub-contractor but you must have other clients on your books to avoid IR35. If not then HMRC could consider that you are in fact an employee and potentially fine you.
Its a big grey area!