Switching to contracting for the same employer

[adi27]

I'd like to switch to contracting post my ILR . I'd like to start working as a contractor for the same employer for whom I'm currently a full time employee. Is it true new IR35 would disallow one to do so? Or is it just going to reduce my take home(i.e I have to pay more taxes) ? Can a full time employee make a switch to start working on a day rate/ contracting for the same company through his/her own pvt ltd company? Will there be any legal risks of doing so either for the employee or for the employer?

Appreciate any advice.

Many thanks,
Adi

[zimba]

This has nothing to do with immigration rules and is in the territory of tax legislation. You can become a contractor and work as a 'disguised employee' but then the IR35 rules will apply (you will incur much higher taxes). IR35 legislation technically protects government from losing NI payments. I suggest you seek the help of a IR35 specialists if you want more info.