• 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!

Options at end of 2 year contract (ending March 2020)

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

    Options at end of 2 year contract (ending March 2020)

    Hi,

    My current contract with a large UK bank is coming to an end in March 2020.

    It will mark my 2 years contracting for this client and 2 years in total contracting. I'm currently operating outside of IR35 through my limited company.

    This company hasn't yet confirmed their position on IR35, but if it's like any other major banks (which I expect it is) then I think they'll be putting an end to limited company contractors and either force PAYE/Umbrella company contractors or going permament.

    I've been reading on the forum about retrospective action by HMRC and seen suggestions that for people who decide to go permament or PAYE with the same client after April 2020 might get investigated on whether their original contract was truly outside IR35 (especially if they're doing the same job) and potentially will have to pay back taxes.

    Most of these though are after 5 or so years with the same client, for me it would be right at the end of a 24 month period (maximum for outside IR35)

    Do you think I'd also potentially be investigated if I go the PAYE/Umbrella contracting route post March? I'm unlikely to go permament, but same question if I did?

    Or should I just leave and go to another client as it's safer (I'd prefer to stay if I can as they pay well and they're good on WFH)

    Thanks.

    #2
    We don't know. It's as simple as that.

    Discussion of the scenarios is in the sticky at the top of the thread.

    From there then it's your decision.

    Sorry to be short but this has been asked numerous times in the last few days and there is also a sticky for it.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      Originally posted by Kesteral View Post
      Hi,

      My current contract with a large UK bank is coming to an end in March 2020.

      It will mark my 2 years contracting for this client and 2 years in total contracting. I'm currently operating outside of IR35 through my limited company.

      This company hasn't yet confirmed their position on IR35, but if it's like any other major banks (which I expect it is) then I think they'll be putting an end to limited company contractors and either force PAYE/Umbrella company contractors or going permament.

      I've been reading on the forum about retrospective action by HMRC and seen suggestions that for people who decide to go permament or PAYE with the same client after April 2020 might get investigated on whether their original contract was truly outside IR35 (especially if they're doing the same job) and potentially will have to pay back taxes

      Most of these though are after 5 or so years with the same client, for me it would be right
      at the end of a 24 month period (maximum for outside IR35)

      Do you think I'd also potentially be investigated if I go the PAYE/Umbrella contracting route post March? I'm unlikely to go permament, but same question if I did?

      Or should I just leave and go to another client as it's safer (I'd prefer to stay if I can as they pay well and they're good on WFH)

      Thanks.
      You cleArly do not have a clue about ir35

      Comment


        #4
        Originally posted by Kesteral View Post

        Most of these though are after 5 or so years with the same client, for me it would be right at the end of a 24 month period (maximum for outside IR35)
        What?

        Comment


          #5
          Originally posted by MrButton View Post
          What?
          He’s thinking of the 24 month rule for expenses, which isn’t as black and white as it sounds and has been discussed to death on this forum
          "why ride a vespa when you can push a lambretta?"

          As I look ahead, I am filled with foreboding; like the Roman, I seem to see "the River Tiber foaming with much blood."

          Comment


            #6
            Originally posted by Major Hassle View Post
            He’s thinking of the 24 month rule for expenses, which isn’t as black and white as it sounds and has been discussed to death on this forum
            Yes you're correct and I was clearly mistaken, it's not linked to IR35 explicitly which is what one of my contractor colleagues told me which was incorrect.

            I would appreciate it if anyone could help with the original question, rather than criticising my lack of IR35 knowledge, as I wouldn't be posting here if I knew absolutley everything already.

            Comment


              #7
              Sometimes I do despair, I've come to the conclusion that the flexible workforce has brought this on themselves by some of the numpty understanding. I expect these are the same people who work the three months prior to their CT bill to put money back in the company that they have drained.

              Comment


                #8
                Originally posted by Major Hassle View Post
                He’s thinking of the 24 month rule for expenses, which isn’t as black and white as it sounds and has been discussed to death on this forum
                He won't be. Many clients have a 2 year rule and most of the hiring managers don't really know why. The myth will circulate it's about contractors not claiming employment rights which then filters down to IR35 and the feckless then assume 2 years is an IR35 cut off. The reality is the 2 year rule is just a stake in the ground to stop keeping long term contractors on when the roles should have been converted to perms before this date.

                Been at two clients where I hit the 2 year rule and had to leave and all the permatractors believe it to be because of the 'IR35 limit'. Most of these guys aren't aware enough of the 2 year expenses rule to mix it up.
                'CUK forum personality of 2011 - Winner - Yes really!!!!

                Comment


                  #9
                  Originally posted by Major Hassle View Post
                  He’s thinking of the 24 month rule for expenses, which isn’t as black and white as it sounds and has been discussed to death on this forum
                  You're right, I was thinking this related to IR35 based on what some of my contractor colleagues have told me (perhaps they were confused with client 2 year rules). Obviously that was incorrect, but I'd appreciate if anyone can help with the original question, instead of criticising my IR35 knowledge, as if I knew everything I wouldn't be posting on this forum.

                  Comment


                    #10
                    Originally posted by Kesteral View Post
                    You're right, I was thinking this related to IR35 based on what some of my contractor colleagues have told me (perhaps they were confused with client 2 year rules). Obviously that was incorrect, but I'd appreciate if anyone can help with the original question, instead of criticising my IR35 knowledge, as if I knew everything I wouldn't be posting on this forum.
                    As mentioned already, there is a sticky at the top of this forum which will help you.

                    But TBF, with such a lack of knowledge around IR35 I'd say you want to be well away from this client before any determination is made to avoid whatever problems you've made yourself in the past 2 years. Thing is, because you don't understand IR35 you won't understand the risks or why you should do that.

                    But anyway, read the sticky.
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

                    Comment

                    Working...
                    X