Originally posted by CosmicWave
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Originally posted by mogga71 View PostThats exactly the problem though isn't it? ... it's not certain.Comment
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Originally posted by jsnetman View PostIt boils down to your appetite to risk, if you've been in contract at same client for 2 years it maybe is acceptable to take the risk, if you've been there 3 years or more then the risk gets much greater in terms of financial penalties and back taxes should they do aggressive investigations. Vast majority at my place are 5+ years including me.
Discussion had moved towards the possibility of instead paying a stack load of their money into their SIPPS as if HMRC come calling such money will be deemed fine and no tax and fines will need to be paid on that part apparently. Problem is how few contractors actually have any form of Pension in place. It shocked me.
As you rightly point out, its all about a persons appetite for risk.Comment
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Originally posted by mogga71 View PostI am at a major bank and like yourself, most contractors on my floor have been there for more than 5 years ... not me though. A lot of them are now talking about this very issue of possible outside to inside investigations. indeed, should they even bother doing an MVL any more .... as can these people easily be identified and cross matched with outside to inside switchers meaning their very appealing 10% ER tax rate will come back and bite them and leave them with a big tax burden and fine in a couple of years.
Discussion had moved towards the possibility of instead paying a stack load of their money into their SIPPS as if HMRC come calling such money will be deemed fine and no tax and fines will need to be paid on that part apparently. Problem is how few contractors actually have any form of Pension in place. It shocked me.
As you rightly point out, its all about a persons appetite for risk.Comment
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Originally posted by jsnetman View PostI have been syphoning the max into a pension last two years, but don't think that will protect you should they come a knocking.
But I think the general consensus was that as absolutely no deductions are taken before the Pension payments for anybody (including permies with SS) then they will be exempt from the investigations.Comment
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Originally posted by jsnetman View PostI have been syphoning the max into a pension last two years, but don't think that will protect you should they come a knocking.Comment
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If this is part of a campaign to target those who've gone from outside to inside (or outside to brolly, or outside to perm), the first target is likely public sector people. The clock is running, if they want to go after them.
There has, as of yet, been no sustained campaign against them, or we'd have heard about it.
Although I think the risk is very high of these investigations, I think people who are making the move now probably have some time to get their companies closed. I could be mistaken. I wouldn't go outside to inside, personally. But I think if these kinds of investigations start they will start with the public sector people so that they don't escape the net before the clock runs out. The private sector people may have time to close their companies.
And as I've said elsewhere and repeatedly, I think the risk is low if you can get your company closed before HMRC come knocking.Comment
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In respect to IR35, HMRC can be viewed as any other debt collection agency; they will take a view as to whether the cost of the chase is worth the prize at stake.
Any self-determination of outside with a QDOS-approved contract and working practices will be at the bottom of the pile.
Any self-determination of outisde that are now inside are, in the eyes of HMRC (and not unreasonably so), an admission that the self-determination was incorrect; any failure to challenge the determination with good evidence will demonstrate a lack of care and attention and you'll be front and centre on the list.
Why IT first? Best paid, highest likelihood of inside. Will be interesting to see how many foreign contractors flee, never to work here again rather than face the taxman and his bill.The greatest trick the devil ever pulled was convincing the world that he didn't existComment
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Originally posted by WordIsBond View PostAnd as I've said elsewhere and repeatedly, I think the risk is low if you can get your company closed before HMRC come knocking.Comment
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