Originally posted by Liberator
View Post
- 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: Backdated complications if new offer is inside IR35
Collapse
X
-
Make Mercia Great Again! -
Originally posted by sojan View Posthave been working 5 years within same client/company via an agency. So the explicit assumption is all contractors will be inside IR35 from next year as per the client. The agency is planning to replicate the same as they are not bothered to take any risk. We are happy with client & agency and is offered an extra £25 per day rate to help us. So most of us are preparing ourselves to move inside IR35 from next year.
But the key query is,
1. If there is a change in IR35 determination from next year, will HMRC have an assertion to tag us as inside IR35 for previous 5 years? i.e. will this have backdated implications?
2. Would HMRC have enough data to pick and isolate "directors" who have shifted from limited company to umbrella company?
3. Is there any purpose of retaining existing limited company or can we close down after moving to umbrella company?Make Mercia Great Again!Comment
-
Originally posted by northernladuk View PostThat theory might be true but there is a lot going against it.
For a start, one of HMRCs only wins against an IT contractor was the JLJ case which fell apart due to time on site eroding his situation. I've done 4 years on site and it got to the point I had to leave for the same reasons. I struggle to think of any situation I've seen where people are on site 3 years and are not sitting ducks. Part and parcel, IMO, is enivitable however hard you try.
<snip>
I've been wary of this, having been contracted to one client for a quite a few years now. As the years wore on, I've made myself more and more of a pain in the arse to the client, to the point that the I.T. director once blocked my exit from the office trying to insist I work "on-site" that Friday. Obviously I declined, referring him to the contract which states that the Consultancy can work when and where it chooses to
The contract started as 5 days on site and now, years later, I am never on site, and only occasionally in touch with the client during the day. I've tried to do what I can to remain outside of IR35, including getting a Sub in for a short time, a few months ago. As I see it, I am clearly outside IR35, but the several-year stint concerns me still. And furthermore, I have no idea what the client thinks of my 'status' - and that is the real issue.Comment
-
Can't see myself in this situation, but if I were, and I wanted to stay, I'd ask them to just not make a determination on my contract and go brolly now instead. If you are brolly they don't have to make a determination.
Get the company closed before April. My guess is HMRC will be chasing the people who haven't even taken those precautions, and by the time they get around to you, if they do, the company will be closed, and they'll shrug and move on to the next easy target.Comment
-
Originally posted by ChimpMaster View PostThis is a good point and it's likely that many contractors and clients will get too comfortable the longer a contract runs.
I've been wary of this, having been contracted to one client for a quite a few years now. As the years wore on, I've made myself more and more of a pain in the arse to the client, to the point that the I.T. director once blocked my exit from the office trying to insist I work "on-site" that Friday. Obviously I declined, referring him to the contract which states that the Consultancy can work when and where it chooses to
The contract started as 5 days on site and now, years later, I am never on site, and only occasionally in touch with the client during the day. I've tried to do what I can to remain outside of IR35, including getting a Sub in for a short time, a few months ago. As I see it, I am clearly outside IR35, but the several-year stint concerns me still. And furthermore, I have no idea what the client thinks of my 'status' - and that is the real issue.Comment
-
Originally posted by WordIsBond View PostCan't see myself in this situation, but if I were, and I wanted to stay, I'd ask them to just not make a determination on my contract and go brolly now instead. If you are brolly they don't have to make a determination.
Get the company closed before April. My guess is HMRC will be chasing the people who haven't even taken those precautions, and by the time they get around to you, if they do, the company will be closed, and they'll shrug and move on to the next easy target.Comment
-
Originally posted by Liberator View PostThat's not a bad idea re going brolly now. But what if you're waiting for your client to review working practices and contracts for it's contractors. It could be that it decides that after beefing up contract and working practices that it is going to agree that you're outside going forward?'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
-
Back to the OP... I'd be looking to leave. Obviously an easy thing to say and have no idea of circumstance, but I think I'd risk a month or two or three of no income rather than 5 years of backdated tax.Comment
-
Originally posted by Liberator View PostThat's not a bad idea re going brolly now. But what if you're waiting for your client to review working practices and contracts for it's contractors. It could be that it decides that after beefing up contract and working practices that it is going to agree that you're outside going forward?
If you think there's a chance of getting an outside determination, sure, you might want to stick around. But in that case I think it would be wise to be prepared to walk as soon as you are told it is going the wrong way.Comment
-
Originally posted by WordIsBond View PostCan't see myself in this situation, but if I were, and I wanted to stay, I'd ask them to just not make a determination on my contract and go brolly now instead. If you are brolly they don't have to make a determination.Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment