Post IR35 World

[Bovvered]

Well, what great news. Having maticulously saved for any possible IR35 comeback, on top of my other savings, I know find myself in an even better position! Gordo has actually done something positive for me!

I think I may scrap my two-year-max-for-a-client rule which will make things easier going forwards too.

[Troll]

Well, what great news.
I think I may scrap my two-year-max-for-a-client rule which will make things easier going forwards too.

But then you would lose your travel expenses

[malvolio]

Nice to know people are paying attention...

The "two year rule" is nothing to do with IR35, it's to do with employment rights being acquired. And it's not two years, in Dacas and Muscat it was taken to be around 12 months. And better legal commentators than me have then argued that if it applies after 12 months, it applies after 1 day. And if you have a proper B22B contract, or a contract that clearly takes you away from being an employee, it can't apply anyway.

That sounds like an IR35 argument but it isn't. The difference is that IR35 is a personal taxation question and the one-year-employee is an employment rights one: different departments (HMRC and DTI), different criteria, different outcomes even in the same overall situation.

So before you make business decisions, I suggest you learn the reasons why you should do one thing or another.

[Bovvered]

You'll notice I said "MY" rule. It is something I have adhered to, along with peppering my accounts with all sorts of extra sales incomes (along side my daily contracting) in my personal endeavour to ensure my accounts are those of a business and not an employee.

If you have a problem with my being cautious then that's up to you.

[Ardesco]

I thought it was 7 years they could go back if you failed an IR35 check. I may be wrong though so some confirmation would be good

However I must admit i'm just chucking cash into a savings account just in case the worst should happen anyway. I suppose I should look at other forms of company investment, high interest account can't be the best way to save the money (Although it is probably the safest).

[oraclesmith]

We're not post IR35, so don't do anything rash. According to other posts, which are no more than insider rumours really, the HMRC is scaling down their efforts re. IR35, but they're not dropping the legislation. In my humble opinion they would still go after cases where they think they have a good chance of getting lots of tax back.