April 5th 2020 and Contract Extension/Renewal April 5th 2020 and Contract Extension/Renewal
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    Default April 5th 2020 and Contract Extension/Renewal

    Hi

    My current contract with the end client ends on October 31st. Although the end client stated intention is to remove all contractors, I'm still being asked about extending (no dates mentioned) on a new project.

    My question, is would it be safe to renew to Mid March 2020 (I get paid 7 days after invoice), keeping me ahead of the April 5th 2020 deadline (or are there other dates that I should take into account).

    Is there any thing else I should be doing (I will have the contract reviewed by QDOS)

    Thanks - Iguy

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    Quote Originally Posted by iguy2008 View Post
    Hi

    My current contract with the end client ends on October 31st. Although the end client stated intention is to remove all contractors, I'm still being asked about extending (no dates mentioned) on a new project.

    My question, is would it be safe to renew to Mid March 2020 (I get paid 7 days after invoice), keeping me ahead of the April 5th 2020 deadline (or are there other dates that I should take into account).

    Is there any thing else I should be doing (I will have the contract reviewed by QDOS)

    Thanks - Iguy
    Nothing is definite when it comes to IR35 and the 5th April, but accepting a contract where payment end before then is one that I would take.

    Others are more paranoid regarding assessments beginning from January, but since I think that they are happening from now until April, I think that if you're that paranoid you should be thinking about leaving the field completely and going permie.

    If I still wanted to be a short-term worker (I can't see the term 'contractor' working after April 2020), I would take that contract.

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    Quote Originally Posted by iguy2008 View Post
    Hi

    My current contract with the end client ends on October 31st. Although the end client stated intention is to remove all contractors, I'm still being asked about extending (no dates mentioned) on a new project.

    My question, is would it be safe to renew to Mid March 2020 (I get paid 7 days after invoice), keeping me ahead of the April 5th 2020 deadline (or are there other dates that I should take into account).

    Is there any thing else I should be doing (I will have the contract reviewed by QDOS)

    Thanks - Iguy
    I would say that you have put cart before horse here.

    If you are confident that the role now and post October is outside IR35, perhaps after seeking advice, then the end contract date will make no difference as you are outside IR35.

    If you are concerned that the present and post October roles are actually within IR35, then you already have a problem and you should be seeking protection from what may be an enquiry from HMRC.
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    I'm afraid that I'm less confident that the end-client's assessment and my B&C contract assessment (I always used to use B&C) will align in the future webberg.

    Start with a clean slate after the 5th April is my advice.

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    Quote Originally Posted by webberg View Post
    I would say that you have put cart before horse here.

    If you are confident that the role now and post October is outside IR35, perhaps after seeking advice, then the end contract date will make no difference as you are outside IR35.

    If you are concerned that the present and post October roles are actually within IR35, then you already have a problem and you should be seeking protection from what may be an enquiry from HMRC.
    Hi Webberg

    Sadly, Im not confident about much these days.

    My existing contract has been reviewed by QDOS.
    I believe my working practices put me outside IR35.


    However, I disagree with your statement about it doesn't matter what the end date of the contract is, if I'm sure that I'm outside of IR35 because my understanding is that from April 5th 2020, it wont be my call, It will be the decision of the end client.

    At this stage, Im just testing whether I can squeeze in a few extra months before packing it all in.

    Thanks - Iguy

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    Quote Originally Posted by cojak View Post
    I'm afraid that I'm less confident that the end-client's assessment and my B&C contract assessment (I always used to use B&C) will align in the future webberg.

    Start with a clean slate after the 5th April is my advice.
    I agree with this. I've just had an extension through to the 31st March but will finish a week early for the payment to make this financial year.

    If I can't get an outside determination in the next one then I suppose going brolly from 6th April is a good time to do it.

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    Quote Originally Posted by SeededLoaf View Post
    I agree with this. I've just had an extension through to the 31st March but will finish a week early for the payment to make this financial year.

    If I can't get an outside determination in the next one then I suppose going brolly from 6th April is a good time to do it.
    Which would open the door wide open for an investigation in to your old contract if the new one is inside.
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    I did mean leaving the client and finding a new one.

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    Quote Originally Posted by iguy2008 View Post
    Hi Webberg


    I believe my working practices put me outside IR35.


    However, I disagree with your statement about it doesn't matter what the end date of the contract is, if I'm sure that I'm outside of IR35 because my understanding is that from April 5th 2020, it wont be my call, It will be the decision of the end client.

    Thanks - Iguy
    That is correct but the end client will be using exactly the same tests as QDOS and if they take an objective and dispassionate view, they will come to the same conclusion.

    If you are suggesting that the end client will have their own reasons for saying that a role post April 2020 will be inside IR35, that is entirely different.

    (It's a subject debated in these threads with some contractors saying that have little choice but to accept and others claiming that they can influence the end client. Clearly much of this will come down to your relationship with your end client and their general policy).
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    Quote Originally Posted by webberg View Post
    That is correct but the end client will be using exactly the same tests as QDOS and if they take an objective and dispassionate view, they will come to the same conclusion
    That’s an optimistic “if”.

    Does QDOS also apply the panic-like-a-headless-chicken-blanket-inside test?

    OP: unless the client is ahead of the curve and very sensible, contrary to what you imply in your OP, then it’s better to time your move so that the last payment is received before April 2020. There is always the possibility that you receive a negative determination on your existing contract long before April 2020, but avoiding that means walking much sooner and it also doesn’t change the reality about what the client thinks.

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