Hi All,
Long time lurker, first time poster (please be gentle)..
I just wanted your good people’s thoughts on my particular situation with regard to this whole public sector debacle (I was going to post in the Staying In Public Sector thread - but thought I'd start a new one as that is getting quite weighty..)
I’ve just finished the first contract (6 months) at a public sector body. The contract was a Capita CL1 one, which I had run as being outside IR35 (yes, yes I know - but it has a substitution clause, etc. and I had both the contract and working practices document signed off by the client and approved by QDOS as being outside IR35).
I also have spent the last couple of months of this contract away on (effective) holiday, so the last invoice on this contract has already been paid in January - so no payments post April.
I have an offer of an extension - which has been deemed inside IR35 by the client in this brave new world. Fair enough.
I originally thought this would be a straight extension of my current contract. Given that would mean a straight switch from outside to inside - and a potential red flag to HMRC - I had intended to retrospectively change my current contract accounts from outside to inside IR35 to avoid any unnecessary unpleasantness (my accountant said they should be able to do this - sort out all the taxes, etc).
However, I’ve now found out the client is also switching agencies (and presumably contracts). So this ‘extension’ would actually be a new contract with a totally new agent. There will also be a gap of several weeks between the old contract ending and the new one starting (not to mention I haven’t actually worked the last 2 months of my old contract).
So I was just thinking I was maybe being too cautious trying to retro-fit my old contract accounts into being inside IR35 - and in this case I can just accept the old contract as being outside, and the new contract as being inside IR35 and carry on.
Appreciate no-one really knows how HMRC will deal with these situations - and it all comes down to ‘how well you want to sleep at night’, but I’m thinking this gives me a *fair* degree of confidence that the old contract is well enough covered to cause HMRC to pass over if it ever arose (and yes, I have IR35 insurance).
Thought it might be useful to throw this particular scenario into the mix and see if anyone had any (hopefully constructive) insights?…
Thanks for your time
Long time lurker, first time poster (please be gentle)..
I just wanted your good people’s thoughts on my particular situation with regard to this whole public sector debacle (I was going to post in the Staying In Public Sector thread - but thought I'd start a new one as that is getting quite weighty..)
I’ve just finished the first contract (6 months) at a public sector body. The contract was a Capita CL1 one, which I had run as being outside IR35 (yes, yes I know - but it has a substitution clause, etc. and I had both the contract and working practices document signed off by the client and approved by QDOS as being outside IR35).
I also have spent the last couple of months of this contract away on (effective) holiday, so the last invoice on this contract has already been paid in January - so no payments post April.
I have an offer of an extension - which has been deemed inside IR35 by the client in this brave new world. Fair enough.
I originally thought this would be a straight extension of my current contract. Given that would mean a straight switch from outside to inside - and a potential red flag to HMRC - I had intended to retrospectively change my current contract accounts from outside to inside IR35 to avoid any unnecessary unpleasantness (my accountant said they should be able to do this - sort out all the taxes, etc).
However, I’ve now found out the client is also switching agencies (and presumably contracts). So this ‘extension’ would actually be a new contract with a totally new agent. There will also be a gap of several weeks between the old contract ending and the new one starting (not to mention I haven’t actually worked the last 2 months of my old contract).
So I was just thinking I was maybe being too cautious trying to retro-fit my old contract accounts into being inside IR35 - and in this case I can just accept the old contract as being outside, and the new contract as being inside IR35 and carry on.
Appreciate no-one really knows how HMRC will deal with these situations - and it all comes down to ‘how well you want to sleep at night’, but I’m thinking this gives me a *fair* degree of confidence that the old contract is well enough covered to cause HMRC to pass over if it ever arose (and yes, I have IR35 insurance).
Thought it might be useful to throw this particular scenario into the mix and see if anyone had any (hopefully constructive) insights?…
Thanks for your time
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