Just landed my first full-blown OS IR35 contract...
Just landed my first full-blown OS IR35 contract...
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danb79

Original Poster:

13,535 posts

100 months

Tuesday 28th July
quotequote all
bounce I've finally landed my very 1st contract starting next Monday biggrin

I took VR from a global BigTech company last July; had July to December off, as personal leave, and then Jan until now, this year; I've run my own Limited Company on a fractional basis, looking after a few long-standing clients (I specialise in Tech/Digital/GTM recruitment)

Having run my own business before for 14 years up until CV19 kicked in; I did not want to repeat this, but it's got me by and brought in some income whilst I've been applying for jobs left, right & centre...

My conclusion with the industry that I'm in (which is more delivery / talent orientated rather than bog standard recruitment); is that a majority of business a) want people in the office (I can't accommodate that due to ongoing health 'niggles') and b) they want yes people, and I am not a yes-person, at all... ?

After a few interviews (last week and then yesterday with the COO); I've been offered the job today as a Senior Talent Partner, initial 6month contract on a day-rate, with a very strong potential of it becoming perm, which I'm super-chuffed about and can't wait to get cracking

type To end this - If you're an experienced DevOps / Platform Engineer / Developer (back-end, front-end, full stack etc) then ping me a direct message on here and we can have a chat about the current requirements at the company I'll be with from Monday 3rd Aug 2026 thumbup

beambeam1

1,666 posts

71 months

Thursday 30th July
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Well done fella, after a turbulent spell dealing with such niggles you must be proper chuffed with this news.

worsy

6,589 posts

203 months

Thursday 30th July
quotequote all
Congrats!

What does OS mean? Surely not outside as you refer to "job" and chance to go perm.

Samuel978

14 posts

21 months

Thursday 30th July
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Congrats! That’s a great result after a pretty rough year.

danb79

Original Poster:

13,535 posts

100 months

Thursday 30th July
quotequote all
beambeam1 said:
Well done fella, after a turbulent spell dealing with such niggles you must be proper chuffed with this news.
Thank you - I'm very happy with the role; I wanted to avoid running my own business again as much as I could; 14 years last time around was enough and CV19 was the icing on the cake of it, so to speak, not in a good way!

It's unfortunately I was faced with VR last year; but seeing as they've made another 8000 redundancies this year, it was the right thing to do. And that time off was needed to try and get to grips with thee health issues that have plagued me since 2021 and got worse mid 2023 etc

danb79

Original Poster:

13,535 posts

100 months

Thursday 30th July
quotequote all
worsy said:
Congrats!

What does OS mean? Surely not outside as you refer to "job" and chance to go perm.
Outside, so outside IR35 (which means I'll invoice the company I'm contracting for and they'll pay my Limited Company, and I'll take a salary/dividends from that etc)

It's an outside IR contract to begin with and if all goes well; I'll potentially take on a perm role, which will be PAYE as per the norm

danb79

Original Poster:

13,535 posts

100 months

Thursday 30th July
quotequote all
Samuel978 said:
Congrats! That s a great result after a pretty rough year.
Cheers and yes - some of it has been time off I took purposely, but the market is very difficult currently and I've had numerous interviews and turned numerous jobs down after getting through further stages and getting to see they're not the company for me etc

MustangGT

13,788 posts

308 months

Thursday 30th July
quotequote all
danb79 said:
worsy said:
Congrats!

What does OS mean? Surely not outside as you refer to "job" and chance to go perm.
Outside, so outside IR35 (which means I'll invoice the company I'm contracting for and they'll pay my Limited Company, and I'll take a salary/dividends from that etc)

It's an outside IR contract to begin with and if all goes well; I'll potentially take on a perm role, which will be PAYE as per the norm
As Worsy has commented, what you have described is very much NOT outside IR35. HMRC would be very interested in this.

danb79

Original Poster:

13,535 posts

100 months

Thursday 30th July
quotequote all
MustangGT said:
danb79 said:
worsy said:
Congrats!

What does OS mean? Surely not outside as you refer to "job" and chance to go perm.
Outside, so outside IR35 (which means I'll invoice the company I'm contracting for and they'll pay my Limited Company, and I'll take a salary/dividends from that etc)

It's an outside IR contract to begin with and if all goes well; I'll potentially take on a perm role, which will be PAYE as per the norm
As Worsy has commented, what you have described is very much NOT outside IR35. HMRC would be very interested in this.
Eh?

I run my Limited Company - I'll be working for the client as a stand-alone contractor, invoicing them via my Limited Company and as the director, I'll take a salary

That's exactly how it'll be

Outside Ir35: "This means clients pay the contractor’s limited company in gross without deducting employment taxes, leaving the worker responsible for managing their own company and personal taxes"

If / when the time is right and they offer me a perm role; my Limited Company will go dormant, and I'll work as a PAYE employee for the client and they pay me as they would any perm employee

What's hard to understand about that?!

worsy

6,589 posts

203 months

Thursday 30th July
quotequote all
danb79 said:
MustangGT said:
danb79 said:
worsy said:
Congrats!

What does OS mean? Surely not outside as you refer to "job" and chance to go perm.
Outside, so outside IR35 (which means I'll invoice the company I'm contracting for and they'll pay my Limited Company, and I'll take a salary/dividends from that etc)

It's an outside IR contract to begin with and if all goes well; I'll potentially take on a perm role, which will be PAYE as per the norm
As Worsy has commented, what you have described is very much NOT outside IR35. HMRC would be very interested in this.
Eh?

I run my Limited Company - I'll be working for the client as a stand-alone contractor, invoicing them via my Limited Company and as the director, I'll take a salary

That's exactly how it'll be

Outside Ir35: "This means clients pay the contractor s limited company in gross without deducting employment taxes, leaving the worker responsible for managing their own company and personal taxes"

If / when the time is right and they offer me a perm role; my Limited Company will go dormant, and I'll work as a PAYE employee for the client and they pay me as they would any perm employee

What's hard to understand about that?!
It's not that simple. HMRC will take an interest as it sounds like disguised employment not a true B2B relationship.

It maybe a moot point as the engager (your employer) might be responsible for the IR35 definition, and if so responsible for any back taxes if HMRC came calling, however i'd be careful.

edited to say I'd be careful as HMRC will go after the easiest victim, which could be you.

Regbuser

6,817 posts

63 months

Thursday 30th July
quotequote all
Posters always happy to pi$$ on your chips Dan, but worth running your arrangement through the CEST tool

Countdown

49,060 posts

224 months

Thursday 30th July
quotequote all
worsy said:
It's not that simple. HMRC will take an interest as it sounds like disguised employment not a true B2B relationship.

It maybe a moot point as the engager (your employer) might be responsible for the IR35 definition, and if so responsible for any back taxes if HMRC came calling, however i'd be careful.

edited to say I'd be careful as HMRC will go after the easiest victim, which could be you.
If an Employer provides confirmation to the Employee that they consider the role to be "outside IR35" how can HMRC come after the "Employee/Contractor"? confused

I know that's what used to happen but I thought the onus for correct classification had moved from Employee/Contractor to Employer?

Bonefish Blues

36,171 posts

251 months

Thursday 30th July
quotequote all
Delighted for you, been there, got the T-shirt, but I'd also be very dubious about that being construed as outside IR35

danb79

Original Poster:

13,535 posts

100 months

Thursday 30th July
quotequote all
I'm the director of my own Limited Company

I'll be contracting for the end-client; as a tech recruiter

I'll invoice them end of month on the agreed day rate (like any contractor does)

End client will pay my limited company

My limited company will then pay me a salary per month; and I'll take a dividend where required

This is what contracting is outside of IR35 - It's how, for the 25 years I've been in this game; has always worked, especially for the contractors I've placed into the likes of BAE Systems, EADS, GD, GCHQ, Lockheed Martin, Home Office, MOD, MOJ, CPS, DVSE, HMRC and UK based global BigTech businesses

There has never been an issue, as that's the correct way - the contract is B2B (the company I'll be working for and my Limited Company)

So what is it that I'm saying that folk on here cannot comprehend?!

danb79

Original Poster:

13,535 posts

100 months

Thursday 30th July
quotequote all
Regbuser said:
Posters always happy to pi$$ on your chips Dan, but worth running your arrangement through the CEST tool
As is the way rolleyes But what I'll be doing is 100% above board and exactly what OS IR35 contracting is smile

danb79

Original Poster:

13,535 posts

100 months

Thursday 30th July
quotequote all
Since a few of you are convinced I don't know what I'm on about, here's the actual detail from the signed contract rather than me trying to explain it in a forum post.

This isn't just "I invoice my Ltd and take a salary"; the contract itself is built around the specific tests that determine IR35 status, and it's pretty clear-cut:

- Control (Clause 22): "The Client shall have no right to, nor shall seek to, exercise any direction, control, or supervision over the Consultancy in the provision of the services... the Consultancy shall have autonomy over their working methods."

- Mutuality of Obligation (Clause 2.3/2.4): "Client has no obligation to offer work even within the contract and you are not obligated to accept even if you were offered." Plus a straight "No Work, No Pay" clause.

- Substitution (Clause 4): I have the right to send a suitably qualified substitute in my place if needed. Client keeps paying the Consultancy, I remain responsible for paying and managing the sub. That right exists whether or not I ever use it.

- Financial risk: "Supply Company is exposed to business risk, must correct defective work at own cost." I fix my own mistakes on my own time, unpaid, same as any other business supplying services.

- Termination: I have an unconditional right to end the engagement myself, one week's notice either way, not something you get as an employee.

- Status clause (14): Explicitly states this is a contract for services, not employment, and the tax/NI liability sits with my Ltd, not the client.

thumbup

So no, this isn't disguised employment dressed up with an invoice wink It's a genuine B2B services contract with the actual substance behind it - control, MoO, substitution and risk, not just the payment mechanism people were originally getting hung up on.

I do appreciate the concern & input, I've been doing this 25 years and this one's been drafted properly. smile

theboss

7,486 posts

247 months

Thursday 30th July
quotequote all
The contract-to-perm prospect undermines the outside IR35 status of the initial PSC engagement, that’s what other posters are getting at. If you can’t see that as a 25 year contracting veteran, your understanding of IR35 is simplistic.

danb79

Original Poster:

13,535 posts

100 months

Thursday 30th July
quotequote all
There's a potential the role could go permanent.

A potential. Not a guarantee, not a promise. Nor is it contract to perm...

It's a growing business

Pissing hell it's full of pedants in here.

I'll get the thread deleted if all is going to happen, is as one poster put above, is folk are just going to piss on chips...


theboss

7,486 posts

247 months

Friday 31st July
quotequote all
I think people are trying to be helpful by flagging a contradiction which is worth qualifying.

Pedantry is what IR35 specialists and HMRC officers trade in - it’s the name of the game. Cases can be decided by splitting hairs on details such as whether a contract and subsequent employment represented continuing personal service or whether they were truly disconnected. The written T&Cs you skilfully drafted are irrelevant if the commercial reality is that company X engaged Dan’s services via his PSC then liked him so much they asked him to carry on the same work as a perm.

If your client is small by the Companies Act definition the risk exposure sits with you not the client.

I’d just run what you’ve said against an advisor, take insurance, and yeah probably delete the thread…

danb79

Original Poster:

13,535 posts

100 months

Friday 31st July
quotequote all
Thanks for the input all, particularly around the potential perm aspect

It's worth highlighting that it's only been purely casual conversation with zero promises, guarantees, or contract-to-perm clauses on paper.

I’m well aware that HMRC looks at substance over form, which is why I’ve ensured the day-to-day practices match the contract: I’m choosing my own delivery hours completely outside their 9-5 core, utilising my own external software (and hardware) footprint, and actively running separate assignments for my Ltd Company's existing client base simultaneously.

As an exempt small business under the Companies Act, the determination and liability sit with my Ltd anyway, and I've got the relevant PI/IR35 insurances locked down.

I appreciate the heads-up on the pitfalls, but the compliance trail is solid. Thread done, due diligence done, accountant updated and aware (will full contract disclosed to them etc)