Outside -> Inside IR35 - MVL possible?

[b0redom]

Hi All,
I'll shortly be finishing up a gig at ClientCo, and I've been approached about a government role which is firmly inside IR35. It pays reasonably well though, so is worth me considering. If I do go for it and get it, is there anything stopping me winding up my company and going for MVL? I would have to go through an umbrella, and it would seem that my circumstances would have changed. I still wouldn't be a 'proper' permie though.

Any ideas?

[jamesbrown]

Hi All,
I'll shortly be finishing up a gig at ClientCo, and I've been approached about a government role which is firmly inside IR35. It pays reasonably well though, so is worth me considering. If I do go for it and get it, is there anything stopping me winding up my company and going for MVL? I would have to go through an umbrella, and it would seem that my circumstances would have changed. I still wouldn't be a 'proper' permie though.

Any ideas?

No one can give you a definitive answer, because it's untested. However, the TAAR is widely drawn and requires that you don't carry on the "same or a similar trade or activity" within a 2yr period (of a distribution). Trade is well-defined. What's an "activity"? The consensus seems to be that becoming an employee of an umbrella would be fine, but who knows.

Some discussion and examples here (that won't answer your question directly):

https://www.taxation.co.uk/Articles/...rovisions-mvls

[Maslins]

There's a bit of debate over whether umbrella work would count as employment (hence be safe) or contracting (hence not be)...as which it is depends on how you define it/which angle you look at it from.

Personally, I think it'd be safe (as it's suffering all the taxes of employment, all done via PAYE, no dividends etc, so from HMRC's perspective an umbrella worker is a PAYE worker), but that's just my opinion.