Suppose you opted to start a contract within IR35, and the contract terms were IR35 friendly (e.g. right of substitution etc), but the contract turned out to be genuinely outside IR35, e.g. no direction and control, would it be permissible to declare after say six months that it had not in fact been within IR35?
- 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!
Retrospectively opting out of IR35
Collapse
X
-
-
Absolutely, the facts matter. However, you’d be asking for trouble w/r to investigation. As a minimum, you’d want the client to be onside, in writing. Also, remember that the responsibility/liability is scheduled to change on April 6. Edit: I am talking about moving forwards though, not tax “overpaid”. -
Make sure you have collected the evidence to prove it if asked. If you can get the client to sign a letter of engagement, all the better.Comment
-
I guess you can but thats just begging for an investigation.
Can't you get a new contract with a different title and all associated diligence and just declare that contract outside. Swapping inside to outside mid gig isn't a great idea by any means.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
-
Yes. As people have suggested, ensure you obtain evidence and written confirmation/agreement of your working practices. If the situation was all within the same tax year, HMRC won't be aware of your status unless you're carrying out a deemed salary calculation monthly.Comment
-
Yes, more chance getting hit by lightning than getting investigated
Sent from my iPhone using Contractor UK ForumComment
-
Originally posted by OwlHoot View PostSuppose you opted to start a contract within IR35, and the contract terms were IR35 friendly (e.g. right of substitution etc), but the contract turned out to be genuinely outside IR35, e.g. no direction and control, would it be permissible to declare after say six months that it had not in fact been within IR35?
If the client also won't agree to a substitute clause then you unlikely have any grounds to appeal. The client also won't have any incentive to change the status determination as it puts them at risk (from next April).Comment
-
You're arguably at a higher risk of investigation by doing this so I'd say yes you can, but you should make extra sure a) it's financially worth the risk and b) you are very happy that you could defend yourself (with professional help) if you are investigated.
Personally I'd be looking to get some kind of written confirmation of arrangements from the client before I risked doing this.Comment
-
Might be worth considering the future state as well. If there is any chance the client will deem you inside come April you are opening up a massive can of worms popping in and out in such a short period. We are guessing anyone staying at a gig that was outside then inside after April will be the lowest hanging fruits for HMRC and then having this history exposed. Not a great position at all.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
-
Sounds like the client declared it inside to cover themselves against the now delayed IR35 changes, and they now say they "don't care".
What is their stance come April 2021?
----------
Later edit: posted before I saw nluk's post which basically says the same thing.Last edited by zonkkk; 23 June 2020, 11:07.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