• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

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

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Originally posted by mikedarv View Post
    I’m working Ltd up to the end of March and still no idea what to do next… Current client is blanket ban/Inside so do I:

    Move to Umbrella and have my NI contributions go up and possibly get a letter from HMRC?
    Move to Perm and have my NI contributions go up and possibly get a letter from HMRC?
    Have time off and then get an Umbrella/Perm and have my NI contributions go up and possibly get a letter from HMRC?

    Seems like the only way to avoid any targets on your back is to find an outside role at a small company or just have time off indefinitely?
    Seems a fair summary of your options so need more options around leaving
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      Originally posted by northernladuk View Post
      Seems a fair summary of your options so need more options around leaving
      Mentioned a while ago in another thread about the client dishing out Umbrellas and Perms all over the shop and I'd say 90% have no idea of the implications of staying on in the same role.

      If I at least suggest to get IR35 insurance is there even a case to defend for those moving from the same inside role straight to an umbrella?

      Comment


        Originally posted by mikedarv View Post
        Mentioned a while ago in another thread about the client dishing out Umbrellas and Perms all over the shop and I'd say 90% have no idea of the implications of staying on in the same role.

        If I at least suggest to get IR35 insurance is there even a case to defend for those moving from the same inside role straight to an umbrella?
        If you've not got it already I doubt it's going to be any use to you.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          Presumably most people moving to umbrella/perm will be closing their Ltd company as soon as possible.

          So if a letter arrives asking the client (the Ltd company) to pay back employer's NICs and that Ltd has no assets and no longer exists...?

          Comment


            Originally posted by mikedarv View Post
            Presumably most people moving to umbrella/perm will be closing their Ltd company as soon as possible.

            So if a letter arrives asking the client (the Ltd company) to pay back employer's NICs and that Ltd has no assets and no longer exists...?
            If it's an outside to inside transition same client and you're deemed as inside throughout the engagement, assuming the company upon closure is not investigated, then expect to remortgage house and sell assets at a later date as the liability falls onto the director of the company.... HMRC can still open investigations on closed companies after the event. If you have insurance, at least run that a year or two after the LTD is finished.

            Comment


              Originally posted by northernladuk View Post
              If you've not got it already I doubt it's going to be any use to you.
              Could you explain why it would matter when you got IR35 insurance? Is it not the case that if it's in place prior to an investigation, any legal and potential penalty fees would be covered? Thanks

              Comment


                Originally posted by iamirv View Post
                Could you explain why it would matter when you got IR35 insurance? Is it not the case that if it's in place prior to an investigation, any legal and potential penalty fees would be covered? Thanks
                Whixh is why I said if you've not got it getting it now may not help. If you get it now when your client is going to put you inside it's a big ask of the insurance company to then cover you. You won't be able to buy flood insurance if you live on a flood plain and a storm is on its way in.
                It's not there to cover you for imminent risk that would affect your position.
                'CUK forum personality of 2011 - Winner - Yes really!!!!

                Comment


                  Originally posted by northernladuk View Post
                  If you've not got it already I doubt it's going to be any use to you.
                  If somebody is prepared to sell it you on the premise that is covers backdated contracts then I don't see why it would be any less useful than having held it long term ? Guess it depends on the wriggle room the provider has in either scenario.

                  Comment


                    Originally posted by CompoundOverload View Post
                    If it's an outside to inside transition same client and you're deemed as inside throughout the engagement, assuming the company upon closure is not investigated, then expect to remortgage house and sell assets at a later date as the liability falls onto the director of the company.... HMRC can still open investigations on closed companies after the event. If you have insurance, at least run that a year or two after the LTD is finished.
                    HMRC would have to prove you had committed fraud to go down this route. Have you any evidence of this ever happening ?

                    Comment


                      Originally posted by rootsnall View Post
                      HMRC would have to prove you had committed fraud to go down this route. Have you any evidence of this ever happening ?
                      There's no evidence. But there's also no historical analogy to the present situation, so it doesn't mean the speculation is wrong w/r to what might happen.

                      Comment

                      Working...
                      X