IR 35 viewpoint (risky business)

**cojak** · 2 October 2015, 13:29

Originally posted by damien3 View Post

Hi guys

just a quick viewpoint from you all

Would anyone be able to take a risk staying in a contract (possibly IR35 caught) as person has not taken out reviews etc) and do this, continue to gamble, and instead not risk 6 months out of work looking for a news contract (very possible)

Imagine if you need food, cash etch so the risk seems attractive?

Otherwise who just leaves, stays on their Tod at home for 6 months and then does the contract properly next time round.

lets assume the review is pointless as if IR35 caught re-negotiating with the agency/ client is pointless and work has commenced.

Get the contract reviewed and find out one way or the other.

If the contract is caught, why not accept the decision and pay the extra tax and NI?

**b0redom** · 2 October 2015, 14:07

I always get my contracts reviewed up front, but in this situation, why don't you just assume you're not caught and put the extra away somewhere safe? The odds are very small that you'll be investigated and caught, and you don't even know if you're inside or out.

Do you have D+C, MOO and RoS in your contract? What are your working practices like? Do they match the contract?

I wouldn't definitely ditch a contract just because it's inside IR35.

**VectraMan** · 2 October 2015, 14:14

You could always do the contract and pay your tax. Inside IR35 is still a lot better than zero for 6 months.

**gables** · 2 October 2015, 14:53

Originally posted by b0redom View Post

I always get my contracts reviewed up front, but in this situation, why don't you just assume you're not caught and put the extra away somewhere safe? The odds are very small that you'll be investigated and caught, and you don't even know if you're inside or out.

Do you have D+C, MOO and RoS in your contract? What are your working practices like? Do they match the contract?

I wouldn't definitely ditch a contract just because it's inside IR35.

Playing devil's advocate, if the odds are very small that you'll be investigated and caught, why have a review at all, put the money aside as you suggest just in case.

**northernladuk** · 2 October 2015, 15:03

Originally posted by gables View Post

Playing devil's advocate, if the odds are very small that you'll be investigated and caught, why have a review at all, put the money aside as you suggest just in case.

Playing devil's advocate. Because people don't keep it to one side get complacent continue with this process as standard until finally get caught with their pants down and lose everything.

**TheFaQQer** · 2 October 2015, 15:06

I pay my annual salary out of my IR35-caught income, which reduces it somewhat. And then my pension contributions come out of what's left.

I wouldn't necessarily turn down an IR35-caught role, particularly if there is no alternative.

**damien3** · 2 October 2015, 15:19

im inclined to think the best repose is the one infers putting money aside to pay for an obligation that may arise in the future. however that obligation if it does arise is maybe 5/6 years from now. thinking out loud. seems an ok situation but not great because then you just work for a dividend you may or may not collect in 6 years time (depending on the retrospective action HMRC may be able to take )

um the other inference: work as in your caught IR35 but continue to work i'm lead to believe (particularly from this forum) this is crap as the benefits your paying is the same as an employee (time ect) and the receipt is nothing, no recognition no tax break, no worth. I get the argument if you have nothing better keep on doing this but not great for the contracting side. This means the risk is now contracting could be the same and as in employment no better but with all the downsides of not being able to cash out and in no way receiving the recognition. before you all say i'm a great contractor and get recognition all the time you don't, that's the down side of contracting. its always no recognition. you finish your job and well bye bye

btw we're all playing devil's advocate

**northernladuk** · 2 October 2015, 16:02

Right let's go right back to basics as the advice in this thread completely contradicts the advice on another ongoing thread.

I would turn down this gig, why? Because I am pretty confident I can get work in relatively short timescale. That timescale is short enough to make it worth turning the dodgy gig down. I'd ask why the OP is contracting if he's is having to take awful gigs and facing the risk of IR35 or face 6 months on the bench? Something is wrong if he has to either have nothing or a short term gig with permie'esq pay structures. Thats just completely unteneable long term so shouldn't he be looking to get out of contracting?

Or is the OP just taking the very worst case?

Where is his warcheast in all this? Doesnt exist? I can't see anything in the original post that tells me gonna change in the short term future and will be back here next gig. So why contract?

**TheFaQQer** · 2 October 2015, 16:51

Originally posted by northernladuk View Post

I would turn down this gig, why? Because I am pretty confident I can get work in relatively short timescale. That timescale is short enough to make it worth turning the dodgy gig down. I'd ask why the OP is contracting if he's is having to take awful gigs and facing the risk of IR35 or face 6 months on the bench? Something is wrong if he has to either have nothing or a short term gig with permie'esq pay structures. Thats just completely unteneable long term so shouldn't he be looking to get out of contracting?

Whilst I suspect you are right in this instance, not all IR35-caught roles are dodgy or awful.

Anyone who got caught by Danny Alexander's review in the wake of the Ed Lester affair will tell you that

IR 35 viewpoint (risky business)