IR35 Implications from April - Converting to work thru Umbrella company

[rajesh825]

Hello, I am currently contracting through my Own limited company for a Public Sector Client.
If I work through an Umbrella company for same Client , will it be classified as Inside IR35. Would you please advise.

Does this involve any potential IR35 investigation for past contracting work, even for going permanent role / through umbrella company for same client.

Thanks & Regards,
Raja

[MrMarkyMark]

Hello, I am currently contracting through my Own limited company for a Public Sector Client.
If I work through an Umbrella company for same Client , will it be classified as Inside IR35. Would you please advise.

Does this involve any potential IR35 investigation for past contracting work, even for going permanent role / through umbrella company for same client.

Thanks & Regards,
Raja

Could be.

Could do.

[BlueSharp]

Hello, I am currently contracting through my Own limited company for a Public Sector Client.
If I work through an Umbrella company for same Client , will it be classified as Inside IR35. Would you please advise.

Does this involve any potential IR35 investigation for past contracting work, even for going permanent role / through umbrella company for same client.

Thanks & Regards,
Raja

1) You will be paying tax as an employee of the brolly so IR35 status is irrelevant
2) Do you think HMRC will pass the opportunity when they already have evidence to prove you are inside IR35 for investigating your IR35 status prior to the change? (Hint: Yes I think they will)

[Quality]

Current HMRC tool

Could be.

Could do.

How about if a contractor already has a decision of "self-employed" for their existing contract using the HMRC tool that was available at the time, which commits to being a binding decision if the answers entered are correct? Coming after someone in that instance would not be the low-hanging fruit that HMRC will target.

[MrMarkyMark]

How about if a contractor already has a decision of "self-employed" for their existing contract using the HMRC tool that was available at the time, which commits to being a binding decision if the answers entered are correct? Coming after someone in that instance would not be the low-hanging fruit that HMRC will target.

What tool are you on about?

The new one?

[WordIsBond]

I think it is a lot less likely, if you go umbrella, that your historical contracts will be investigated. There will be no formal determination by the client that you are under IR35. Their old contract for your services was with an agency. Their new contract is with a completely different entity, the umbrella.

If you stay Ltd and are determined to be inside, they'll almost certainly look at old contracts. I think there is a risk of it if you go umbrella, especially if a 90% of the contractors at the PSB go brolly -- they'll say, "Ha, it's obvious what was happening here, we'll go after these guys." But the risk is a lot lower if you go brolly, probably.

Should you have been inside? If so, maybe you should just pay your taxes, rather than live in fear that they are going to catch up with you.

[RonBW]

How about if a contractor already has a decision of "self-employed" for their existing contract using the HMRC tool that was available at the time, which commits to being a binding decision if the answers entered are correct? Coming after someone in that instance would not be the low-hanging fruit that HMRC will target.

If you are self employed then you are working directly with the client, paying a different level of NI, but IR35 doesn't affect you.

[northernladuk]

If I work through an Umbrella company for same Client , will it be classified as Inside IR35. Would you please advise.

OMG really? And we wonder why HMRC are after us.

[Quality]

ESI

What tool are you on about?

The new one?

Your response sounds a tad disrespectful but I will let that go. I said the EXISTING tool, so ESI.

[northernladuk]

Your response sounds a tad disrespectful but I will let that go. I said the EXISTING tool, so ESI.

I can see why he's confused. There do seem to be a number of tools around.