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IR35 Status - Can Employer promise be trusted?

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    IR35 Status - Can Employer promise be trusted?

    Hi - Newbie here,

    Can anyone help advise please?

    I have been offered a contracting job by a Council local authority.
    The role is very similar to my current job, but the hourly rate is less then what I am currently on.

    However, the agent has said the new employer will accept my role is outside IR35, meaning I will effectively have a pay-rise. They have provided me with a spreadsheet with all the calculations demonstrating this.

    My question/concern is how reliable is this, can I trust that the judgement that the new Council is not made on IR35 status will not be challenged by HMRC? Who would HMRC challenge - the Council or me? And in a worst case scenario who would end up paying money back to the tax-office?

    Any advice much appreciated.

    #2
    Originally posted by JamesC34 View Post
    Hi - Newbie here,

    Can anyone help advise please?

    I have been offered a contracting job by a Council local authority.
    The role is very similar to my current job, but the hourly rate is less then what I am currently on.

    However, the agent has said the new employer will accept my role is outside IR35, meaning I will effectively have a pay-rise. They have provided me with a spreadsheet with all the calculations demonstrating this.

    My question/concern is how reliable is this, can I trust that the judgement that the new Council is not made on IR35 status will not be challenged by HMRC? Who would HMRC challenge - the Council or me? And in a worst case scenario who would end up paying money back to the tax-office?

    Any advice much appreciated.
    After April 2020, it's not your problem anymore as to whether your contract is inside or outside. The client takes on the responsibility and HMRC will go after them rather than your company if they decide to challenge.

    Comment


      #3
      Point 1 - they aren't your employer, they're your client. Employers employ employees, clients hire contractors.

      Point 2 - never trust a client, or at least have a small dose of paranoia; you could be canned at any minute so need to keep on your toes.

      Point 3 - get the contract and working practices reviewed by QDOS and potentially run them against the CEST tool if QDOS don't offer to do that.
      The greatest trick the devil ever pulled was convincing the world that he didn't exist

      Comment


        #4
        Originally posted by JamesC34 View Post
        IR35 Status - Can Employer promise be trusted?

        Hi - Newbie here,

        Can anyone help advise please?

        I have been offered a contracting job by a Council local authority.
        The role is very similar to my current job, but the hourly rate is less then what I am currently on.

        However, the agent has said the new employer will accept my role is outside IR35, meaning I will effectively have a pay-rise. They have provided me with a spreadsheet with all the calculations demonstrating this.

        My question/concern is how reliable is this, can I trust that the judgement that the new Council is not made on IR35 status will not be challenged by HMRC? Who would HMRC challenge - the Council or me? And in a worst case scenario who would end up paying money back to the tax-office?

        Any advice much appreciated.
        I think you are in more danger of ruining your own outside status than your client or the role

        Not sure how you can do an outside role when you don't appear to understand what being outside is.

        After April 2020, it's not your problem anymore as to whether your contract is inside or outside. The client takes on the responsibility and HMRC will go after them rather than your company if they decide to challenge.
        If it's a public sector role the 2020 has nothing to do with it. The PS rules have been in force for 2 years already no?
        Last edited by northernladuk; 10 January 2020, 10:24.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          Originally posted by pacontracting View Post
          After April 2020, it's not your problem anymore as to whether your contract is inside or outside. The client takes on the responsibility and HMRC will go after them rather than your company if they decide to challenge.
          It is a Public Sector role so these guys have had two or more years to get their heads around this.

          As to the OP's point, if there is nothing else on the table, I would trust them.

          If you don't, ask some pertinent questions to see if the reasons for stating the role will be outside stand up to reason and demonstrate knowledge.

          Comment


            #6
            Ok so the general message I am hearing is that since the rules changed 2 years ago for the public sector, The HMRC would come after the Council rather than the Contractor if they disagreed with IR35 status. So in this light, I am not sure whether it matters whether I trust the Council or not? - it essentially makes no difference to me.

            I agree with the Council that the nature of the work is outside IR35 and that of a contractor, but I have to consider the risks associated with the HMRC taking a different view.

            Comment


              #7
              Originally posted by JamesC34 View Post
              Ok so the general message I am hearing is that since the rules changed 2 years ago for the public sector, The HMRC would come after the Council rather than the Contractor if they disagreed with IR35 status. So in this light, I am not sure whether it matters whether I trust the Council or not? - it essentially makes no difference to me.

              I agree with the Council that the nature of the work is outside IR35 and that of a contractor, but I have to consider the risks associated with the HMRC taking a different view.
              No you don't the risk is with the council for they would be the ones paying the tax afterwards.

              A Public sector outside IR35 contract is (well was given the forthcoming changes) a contract with far fewer risks than a private sector contract.
              merely at clientco for the entertainment

              Comment


                #8
                Assuming you are not giving up a paid role at the higher ph for this?

                Comment


                  #9
                  Originally posted by pacontracting View Post
                  After April 2020, it's not your problem anymore as to whether your contract is inside or outside. The client takes on the responsibility and HMRC will go after them rather than your company if they decide to challenge.
                  If it's a council they are a PS body so the rule are already in place.

                  To the OP:

                  Code:
                  10 If everything is in writing trust it
                  20 If not get it in writing and goto 10
                  Originally posted by Stevie Wonder Boy
                  I can't see any way to do it can you please advise?

                  I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

                  Comment


                    #10
                    Originally posted by JamesC34 View Post
                    Ok so the general message I am hearing is that since the rules changed 2 years ago for the public sector, The HMRC would come after the Council rather than the Contractor if they disagreed with IR35 status. So in this light, I am not sure whether it matters whether I trust the Council or not? - it essentially makes no difference to me.

                    I agree with the Council that the nature of the work is outside IR35 and that of a contractor, but I have to consider the risks associated with the HMRC taking a different view.
                    Hence why the majority of private companies are not taking the risk and are stopping engaging Contractors

                    Job done for them


                    Sent from my iPhone using Contractor UK Forum

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