Confirmed OUTSIDE whilst working for government department

[boxingbantz]

My client have confirmed I am working outside of IR35 and have provided me with the results of the tool that they used to obtain this result.

With this in mind, if any investigations took place, is it fair to say that I would have no financial liability IF HMRC they decided the result was incorrect?

My working practices are outside of IR35, to be honest, but just curious as to how much weight the results of the tests have.

[Lance]

My client have confirmed I am working outside of IR35 and have provided me with the results of the tool that they used to obtain this result.

With this in mind, if any investigations took place, is it fair to say that I would have no financial liability IF HMRC they decided the result was incorrect?

My working practices are outside of IR35, to be honest, but just curious as to how much weight the results of the tests have.

Which tool did they use?
If they used the CEST tool them HMRC have stated that they'll standby the result assuming that genuine working practises have been input.

[DeludedKitten]

My client have confirmed I am working outside of IR35 and have provided me with the results of the tool that they used to obtain this result.

With this in mind, if any investigations took place, is it fair to say that I would have no financial liability IF HMRC they decided the result was incorrect?

My working practices are outside of IR35, to be honest, but just curious as to how much weight the results of the tests have.

HMRC have said that they will stand by any outcome from their CEST tool.

However, since the fee payer is making the judgement then it doesn't matter what they use - they are liable for getting the judgement correct, and are liable for any penalties and taxes that become due.

Just make sure there is nothing in the contract that allows them to pass those on to you - my gut instinct is that this would not be legal anyway, but it would be a fight that you won't want to have just to prove it.

[Hobosapien]

I'd still get the working practices documented and reviewed along with the contract by a reputable review service as a way of taking personal responsibility in case HMRC or client backtrack somehow in the future, just for more peace of mind that you've done about as much as you can to protect yourself.

Then you just need to maintain the working practices that keep you outside.

[WordIsBond]

I'd still get the working practices documented and reviewed along with the contract by a reputable review service as a way of taking personal responsibility in case HMRC or client backtrack somehow in the future, just for more peace of mind that you've done about as much as you can to protect yourself.

I wouldn't. OP has zero liability in this case, and I would not advise him to spend the money.

HMRC is not going to go after individual contractors in this scenario. They are going to go after private sector contractors (at least until the rules change), if they go after individual contractors.

But their whole agenda is to avoid having to go after individual contractors. If they go after this case, it will be with the agenda of making an example of the client. They want clients to rule contractors inside, and they will be out to punish a client who didn't do that if they think the client was wrong. OP is no longer their concern.

[WordIsBond]

Just make sure there is nothing in the contract that allows them to pass those on to you - my gut instinct is that this would not be legal anyway, but it would be a fight that you won't want to have just to prove it.

This is the only thing OP needs to worry about, and as noted, it probably wouldn't be legal anyway.

[Hobosapien]

Fair do's.

OP make sure you keep the proof from the client safe in case HMRC tweak the CEST so the result appears different with the same or similar inputs.

Also print out any legally binding HMRC promise to stand by CEST and not go after the contractor if the client messes it up. Then you can tell them to retrospectively shove it if they change tack in the near future.

[DeludedKitten]

Also print out any legally binding HMRC promise to stand by CEST and not go after the contractor if the client messes it up.

It's not a promise from HMRC. It's the legislation.