IR35 risk of going permie in current contract?

[billybiro]

While they were a contractor they would of been reported; and it won't be hard for HMRC to run a report where someone has been paid by end client A as a contractor who is now an Employee of the end client.

If that report already exists, sure.

If it doesn't, it'll be 6 months of pre-planning, another 12 months of planning, 3 months of resource allocation, 6 months of project steering, with 2-3 years of development work carefully co-ordinated to align with the comprehensive and rigorous change management programme followed by another 12 months of user acceptance testing before the new report can go live to the operators.

In short, the typical "enterprise" project lifecycle where over-bearing bureaucracy causes even simple changes to take almost until the heat death of the universe to complete.

In other words, you'll be either retired or dead before HMRC can run that report to flag you up.

[BlueSharp]

If that report already exists, sure.

If it doesn't, it'll be 6 months of pre-planning, another 12 months of planning, 3 months of resource allocation, 6 months of project steering, with 2-3 years of development work carefully co-ordinated to align with the comprehensive and rigorous change management programme followed by another 12 months of user acceptance testing before the new report can go live to the operators.

In short, the typical "enterprise" project lifecycle where over-bearing bureaucracy causes even simple changes to take almost until the heat death of the universe to complete.

In other words, you'll be either retired or dead before HMRC can run that report to flag you up.

Ah, so just in time for the retro ir35 action, with added interest and penalties. There are already rumours that public sector contractors who reverse Friday to Monday are being targeted.

[BlasterBates]

Ah, so just in time for the retro ir35 action, with added interest and penalties. There are already rumours that public sector contractors who reverse Friday to Monday are being targeted.

Yes though that is different. I would agree there. Contracts inside IR35 is a limited set with rich pickings. Checking every permie is a much bigger challenge and is unlikely to yield very much.

[BlueSharp]

Yes though that is different. I would agree there. Contracts inside IR35 is a limited set with rich pickings. Checking every permie is a much bigger challenge and is unlikely to yield very much.

Why would they check every Permie? HMRC already have contractors PSC and NI/UTC number via the reporting requirements and just need to look at who has now switched Perm for the same end client for some easy pickings. I doubt HMRC would put out a reporting requirement several years ago to all intermediates if they were never going to report on the data.

[FIERCE TANK BATTLE]

I dunno why contract > perm is such a big deal

I've been asked if I want to become perm *many* times by companies after delivering fixed projects.

It's the other way around that's the real danger. I did that for my first contract and went in as PAYE so no problem.

If one day I do a gig and they turn around and make an offer insane enough for me to go permie then I won't even think about IR35.

[northernladuk]

Same reasons exist either way. Its not a big deal in either case if the role is different. The risk is the same in either situation if the role is the same. As with everything to do with IR35, the devil is in the details.

Oh and retrospective taxation is a big deal.

[headsy]

I went to an interview for a contract role and the interviewer just beat me down trying to make me become a perm instead it got to the point where my only response was "well sell me a perm role why should I go perm?" he was shocked and flabbergasted and he couldn't really tell me what was so good about it. Went contract with a different company for the same project (it was a group arrangement)

[BABABlackSheep]

I’ve never heard of HMRC going after contractors who have converted to permie, and this makes absolutely no sense to me. For example if I went permie, then my working practices would be totally different. For example I would have to conduct training, I would have to have reviews with a manager, I wouldn’t be forced to take contractor breaks at Xmas, I wouldn’t have to pay for my own meals if asked to go, I would be given a company phone and not use my own, and so on.

The Xmas breaks was always a biggy for me. How can HMRC claim you are a disguised employee if the company forces all contractors take 2-4 weeks at Xmas? Clearly a massive positive in an IR35 investigation.

[BABABlackSheep]

I'd recommend getting your company closed quickly....

I swear reading posts here is the same as googling your symptoms when ill.. basically you’re a goner.

[Snarf]

The Xmas breaks was always a biggy for me. How can HMRC claim you are a disguised employee if the company forces all contractors take 2-4 weeks at Xmas? Clearly a massive positive in an IR35 investigation.

Surely a client dictating that you can't work certain dates would count as a sign of D&C?