Hi,
I have seen one thread from March around this scenario, and I assume it affects many current contractors. QDOS recent article suggests 2/3rds of contractors "blanket assessed" for April 2020 are now wanting to move back to a PSC basis. Am keen to hear recent thoughts now we are another 2+ months down the track.
My scenario is that I was under an Umbrella already, a year before April 2020, and arbitrarily given an Inside-by-CEST determination (regardless of it not actually applying to me as I was under umbrella, I appealed it and it was never dealt with).
Now the client is offering the option to go to LTD which i have calculated as being a much more tax effective proposition (by several thousand £££). The work is basically self directed and bespoke IT work, little or no supervision due to the isolated nature of the project as a proof of concept peice. It will only be for a 6month term at best on the LTD basis. The other option given is to use a PAYE basis, which automatically puts me into the "employee" pool.
I have had a LTD coy previously, so i know the ropes there. But with the current scenario what at the views of exposures from this? I do not believe I should be classed as inside IR35 regardless, however I do get the feeling that the general atmosphere of the market and contractors generally is to veer towards lumping it and accepting an inside status "just to avoid hassles". Ultimately as i understand it, the onus is on the contractor to decide status until April 2021.
ANy thoughts appreciated, I am sure its a similar scenario to a lot of people out there looking to move Umbrella/PAYE-> PSC.
I have seen one thread from March around this scenario, and I assume it affects many current contractors. QDOS recent article suggests 2/3rds of contractors "blanket assessed" for April 2020 are now wanting to move back to a PSC basis. Am keen to hear recent thoughts now we are another 2+ months down the track.
My scenario is that I was under an Umbrella already, a year before April 2020, and arbitrarily given an Inside-by-CEST determination (regardless of it not actually applying to me as I was under umbrella, I appealed it and it was never dealt with).
Now the client is offering the option to go to LTD which i have calculated as being a much more tax effective proposition (by several thousand £££). The work is basically self directed and bespoke IT work, little or no supervision due to the isolated nature of the project as a proof of concept peice. It will only be for a 6month term at best on the LTD basis. The other option given is to use a PAYE basis, which automatically puts me into the "employee" pool.
I have had a LTD coy previously, so i know the ropes there. But with the current scenario what at the views of exposures from this? I do not believe I should be classed as inside IR35 regardless, however I do get the feeling that the general atmosphere of the market and contractors generally is to veer towards lumping it and accepting an inside status "just to avoid hassles". Ultimately as i understand it, the onus is on the contractor to decide status until April 2021.
ANy thoughts appreciated, I am sure its a similar scenario to a lot of people out there looking to move Umbrella/PAYE-> PSC.
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