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IR35: Planning for April 2021 – should I stay or should I go?

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    Thank you both so much!

    Comment


      Hello all. Newbie poster here so please be kind. I’ve been reading these forums for a few days now. What a fantastic source of information.

      I have contradicting thoughts in my head at the moment and I’m hoping some of the more knowledgeable of you could help and validate what I’m thinking? I know that no one knows the inner workings of HMRC, I’m just looking for experienced viewpoints.

      I’ve been contracting for 5 years now. As a limited company. Never more than 18 months at any one company but always for the big financial institutions (no names ).

      My current contract which was / is a new role, with a different institution to the last has been running for just over 12 months and is due to end on the 28th feb.

      My client is one of those institutions that has decided to go down the route of only employing PAYE via an agency. So no Ltd companies.

      My current client has asked me to go PAYE as they don’t want to lose me off the project I’m working on. So I would basically become an employee of the agency that I got the role through. Same job. Different method of being paid. So I think the agency is now the umbrella company?

      My dilemma is that from everything I have read on here after April It looks like I am going to set off every flag going at HMRC and trigger an investigation.

      So I think my only options here are:
      1. Leave my current client at the end of February. I would be paid before April.
      2. Go PAYE at another company. Not my current client.

      Are my thoughts correct?

      If I go PAYE at another company, would that theoretically flag anything? And would I have to wind up my company

      Many thanks for any help in advance.

      Comment


        HI Padd

        I think you're about right there. Of course, you could have a 3rd option which is to find an outside IR35 option at another client, and a 4th option where you work with the existing client to actually ensure that you fall outside of IR35 (assuming they want to keep you enough).

        As for winding up your company: if you're not outside IR35 any more and don't plan to be on any such contract for the next 2 years, then you might as well wind it up.

        Comment


          Make sure you secure another role before you do anything, read the state of the market thread


          Sent from my iPhone using Contractor UK Forum

          Comment


            Originally posted by GhostofTarbera View Post
            Make sure you secure another role before you do anything, read the state of the market thread


            Sent from my iPhone using Contractor UK Forum
            Hmm leave without a job or have HMRC chasing you for the tax they believe should have been paid in 2019/20 as you were clearly inside and you’ve admitted as much by continuing

            Not an easy choice

            Comment


              Taking a 2 month Break - same client

              Interested in views on following scenario

              Contractor outside IR35 with same client for last 18 months
              Refuses to take part in IR35 Status Determination process
              Finishes contract end of Feb 2020.

              Restarts with same client via brolly in May 2020, different role but similar skills being used

              Will this 2 month break make much difference compared with immediate switch to brolly?
              What things would need to be included in brolly arrangement to reduce risk?

              Comment


                Different role so risk is greatly reduced to point of not being worth worrying about.
                'CUK forum personality of 2011 - Winner - Yes really!!!!

                Comment


                  The contract you have with the brolly isn't really relevant. If the work is as significantly different as you say and it can be convincingly demonstrated/documented then the risk should be low. Make sure both old and new roles are clearly defined.

                  Comment


                    I think I know the answer to this but wondering if someone could advise - the company I contract to isn't going to make a determination, they simply have all contracts scheduled to finish in advance of the deadline and won't allow people to contract through PSC's beyond that date.

                    If I finish my current contract (outside) with last invoice payment before April 6th, would me starting immediately in a permie role be a red flag / high risk?

                    BTW Thanks to all the contributors help in these threads - lot's of great information! I thought I was going to be OK contracting to the end of March... but with the invoice timelines, this forum has told me that is a very bad idea! Bad news but glad I have heard it.

                    Comment


                      I've mentioned this on another thread, but for those going outside to inside at the same client, the sheer number of contractors who will be doing this will mean there's no way HMRC could afford to investigate them all, or even more than a handful surely?

                      They're incredibly under-resourced as it is and the people who will trip this flag in April will number the thousands at some of the big Banks alone.

                      Comment

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