FIX AN ARGUMENT You get told on monday Your Inside IR35 FIX AN ARGUMENT You get told on monday Your Inside IR35
Page 1 of 2 12 LastLast
Posts 1 to 10 of 20
  1. #1

    Nervous Newbie


    Join Date
    Oct 2019
    Posts
    4

    Default FIX AN ARGUMENT You get told on monday Your Inside IR35

    Ok quick Q

    if you got told you're inside on Monday, effectively whilst they are saying it doesn't come into play till April the reality is you have now been told

    So what are the implications, will an agency effectively take the next invoice and say- you should be paying TAX an NI we hear from the company you are now inside.

    There's a Q&A pdf also floating around with a little disclaimer floating round that says if you're inside now then you probably should have been since the beginning of your contract HMRC may wish to claim this back through self assessment.

    Many here where I am think they are just going to carry on invoicing as they do today (whilst they are outside) once they have been told they are inside??

    what do you think?

  2. #2

    Still gathering requirements...


    Join Date
    Jun 2019
    Posts
    79

    Default

    Quote Originally Posted by mikedesign View Post
    Ok quick Q

    if you got told you're inside on Monday, effectively whilst they are saying it doesn't come into play till April the reality is you have now been told

    So what are the implications, will an agency effectively take the next invoice and say- you should be paying TAX an NI we hear from the company you are now inside.

    There's a Q&A pdf also floating around with a little disclaimer floating round that says if you're inside now then you probably should have been since the beginning of your contract HMRC may wish to claim this back through self assessment.

    Many here where I am think they are just going to carry on invoicing as they do today (whilst they are outside) once they have been told they are inside??

    what do you think?
    It depends on your appetite for risk, if you've been there quite a while, many years then how much tax would you be asked to pay? Only you and your colleagues can answer that question.

  3. #3

    Still gathering requirements...


    Join Date
    Apr 2018
    Posts
    45

    Default

    Load of scaremongering.

    You are not liable to PAYE so long as you invoice for services prior to the 5 April deadline.

    Example - if you're paid in month arrears for work then you MUST ensure your services are paid for before the cut off date listed above. If you are working throughout March up until the deadline, you need to inform payers to invoice you weekly / suitably before the deadline. A lot of contractors (those on paid monthly terms) will be leaving roles on 28 February as this is the only period allowing them to be paid in full without incurring the PAYE

  4. #4

    bored now

    eek's Avatar
    Join Date
    Jun 2010
    Location
    😂
    Posts
    23,599

    Default

    Quote Originally Posted by mikedesign View Post
    Ok quick Q

    if you got told you're inside on Monday, effectively whilst they are saying it doesn't come into play till April the reality is you have now been told

    So what are the implications, will an agency effectively take the next invoice and say- you should be paying TAX an NI we hear from the company you are now inside.

    There's a Q&A pdf also floating around with a little disclaimer floating round that says if you're inside now then you probably should have been since the beginning of your contract HMRC may wish to claim this back through self assessment.

    Many here where I am think they are just going to carry on invoicing as they do today (whilst they are outside) once they have been told they are inside??

    what do you think?
    1) Nothing should change until April.
    2) You need to ensure your last payment is made by the agency before April 6th.
    3) You need to leave to ensure that is the case either by confirming that your March payment will be paid before April 5th or by leaving earlier say at the end of February.

    Leaving early is likely to confuse and annoy your end client but tough - it's their decision that how they see you (as an employee) is not how you see them (as a client rather than employer).
    merely at clientco for the entertainment

  5. #5

    Some things in Moderation

    cojak's Avatar
    Join Date
    Jul 2005
    Location
    Look to your right...
    Posts
    19,953
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make myself look wise and well read."
    - Voltaire/Benjamin Franklin/Anne Frank...

  6. #6

    TykeLike

    SimonMac's Avatar
    Join Date
    Aug 2010
    Location
    God's Own Republic Of Yorkshire
    Posts
    23,644

    Default

    Long story short, no body knows.

    HMRC have said they won't apply retrospective action if you are declared inside on an existing contract, it's up to you as to how much risk you are willing to take to believe them.

    If you are declared inside you have 45 days to challenge their determination and find out why they think you are now inside which may help with the above
    “Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.”

    ― Marcus Aurelius

  7. #7

    Super poster

    Lance's Avatar
    Join Date
    Sep 2013
    Location
    home
    Posts
    4,620

    Default

    Quote Originally Posted by SimonMac View Post

    If you are declared inside you have 45 days to challenge their determination and find out why they think you are now inside which may help with the above
    how so?
    It's not even law yet.

    If the client has determined OP's contract as inside, when it's not their call, then this is at the moment simply a difference of opinion.

    The client may say that they will determine it as inside, after April 5th, when it's their problem. The client does not have the right to declare it as inside right now.
    Last edited by Lance; 23rd January 2020 at 11:49.
    See You Next Tuesday

  8. #8

    Should post faster


    Join Date
    Nov 2014
    Posts
    177

    Default

    Quote Originally Posted by Lance View Post
    how so?
    It's not even law yet.

    If the client has determined OP's contract as inside, when it's not their call, then this is at the moment simply a difference of opinion.

    The client may say that they will determine it as inside, after April 5th, when it's their problem. The client does not have the right to declare it as inside right now.
    On the off chance that HMRC open an enquiry on the contract prior to April, the client's view of things is very much relevant. Though I think the chances of an enquiry happening are very low. Depends if you stay on there April onwards.

  9. #9

    Super poster

    Lance's Avatar
    Join Date
    Sep 2013
    Location
    home
    Posts
    4,620

    Default

    Quote Originally Posted by NeedTheSunshine View Post
    On the off chance that HMRC open an enquiry on the contract prior to April, the client's view of things is very much relevant. Though I think the chances of an enquiry happening are very low. Depends if you stay on there April onwards.
    I very much doubt you'll find a client who'd say thay they always knew a contract was inside even though the contractor wasn't treating it as such.
    That would open up the client to all sorts of problems.

    Starting with whether they are involved in a conspiracy to defraud the treasury.
    And could well also be accused of entering into a contract that they knew was not in good faith.
    I'm not a lawyer but I doubt any client would want to be getting into those arguments when it's not their liability.
    See You Next Tuesday

  10. #10

    Still gathering requirements...


    Join Date
    Nov 2019
    Posts
    92

    Default

    Quote Originally Posted by Lance View Post
    how so?
    It's not even law yet.

    If the client has determined OP's contract as inside, when it's not their call, then this is at the moment simply a difference of opinion.

    The client may say that they will determine it as inside, after April 5th, when it's their problem. The client does not have the right to declare it as inside right now.
    Well, they can, it's just not in those formal terms. The client is allowed to have an opinion at any time, that client tells the contractor what the client's opinion is. The contractor will respond to say that if the client has that opinion then it puts the contractor 'inside IR35'. Client does not declare you're inside IR35, they just tell you how they see it based on your current contract/WP. Up until now the client has never had to offer an opinion, they may have had one but why rock the boat? and the contractors never want the opinion of the client as if they have an opinion that puts the contractor as a bum on a seat it has a very strong weighting in IR35 court cases.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •