Many permanent employees are being made redundant at the moment as businesses cut costs, unfortunately a great many of those roles are just no longer viable in the current climate with the effects of the ongoing Covid-19 pandemic taking its toll.

Having said that businesses are fighting to survive and they need to find a way of keeping hold of experienced and skilled individuals. Due to this you may find yourself in a situation where you are offered the chance to come back on a contract for and interim period.

Whist this is a normal situation and there are no laws to prevent it from happening IR35 is definitely a consideration.

When IR35 was first proposed the Friday to Monday situation, when an employee leaves a company on a Friday as a permanent employee and returns on the Monday as a contractor was highlighted.

HMRC’s view was that the Friday to Monday “strategy” is attractive to both employers and employees. The employers pay less Employers NI and if the ex-employee (now contractor) invoices through a Limited company structure they can pay themselves a low salary and take advantage of paying themselves through dividends avoiding a large portion of NI contributions.

Effectively HMRC could lose out on both sides.

We are receiving an increasing number of enquiries of this nature and it’s important to ensure you do not get caught by IR35.

Utilising a compliant Umbrella company, you pay the correct amount of tax and HMRC receives what they expect.

Quad Umbrella Employment is IR35 compliant and we charge just £15 a week processing fee.