Another ER implication thread

[sim2kuk]

So, seems I'm in the same position as a lot of people.

My contract comes to an end on October 31st (the specific role I'm on comes to an end as a permie is taking over the project - she is currently working alongside me on it). I am being offered a new 3 month contract on a new project.

My client has not even started looking at what they are going to do, which is mad because it's a very large business.

So, a couple of questions:

1. If I accept the new contract, and I get an Inside IR35 determination for this new role, will I be liable for back-tax on my previous roles, or just on the new 3 month contract?
2. Can I shut down my LTD company and take ER if that determination is made on the new contract, and then just continue on the new contract as "Inside" IR35 (repaying any tax owing on that 3 month contract)?

[northernladuk]

So, seems I'm in the same position as a lot of people.

My contract comes to an end on October 31st (the specific role I'm on comes to an end as a permie is taking over the project - she is currently working alongside me on it). I am being offered a new 3 month contract on a new project.

My client has not even started looking at what they are going to do, which is mad because it's a very large business.

So, a couple of questions:

1. If I accept the new contract, and I get an Inside IR35 determination for this new role, will I be liable for back-tax on my previous roles, or just on the new 3 month contract?
2. Can I shut down my LTD company and take ER if that determination is made on the new contract, and then just continue on the new contract as "Inside" IR35 (repaying any tax owing on that 3 month contract)?

And because there are a lot of people in your position we made a sticky so we don't have go through it all ad infinitum. It's at the top of this part of the forum if you'd like to read it.

[sim2kuk]

And because there are a lot of people in your position we made a sticky so we don't have go through it all ad infinitum. It's at the top of this part of the forum if you'd like to read it.

I read through this sticky, but could not see where my specific issue has been addressed:

https://www.contractoruk.com/forums/...ld-i-go-9.html

Is this the sticky you're talking about? I did post in there as well but waiting for an answer - so thought I'd post elsewhere as well!

[Amanensia]

Jeez, thanks for hijacking my very specific thread with your question. Much appreciated.

[sim2kuk]

Jeez, thanks for hijacking my very specific thread with your question. Much appreciated.

Well, it's also about Ltd to Umbrella and the ER implications, and your last post indicated that you had finished on the matter.

However, I am sorry that I posted a question that didn't directly relate to YOU, on YOUR thread.

[northernladuk]

I read through this sticky, but could not see where my specific issue has been addressed:

https://www.contractoruk.com/forums/...ld-i-go-9.html

Is this the sticky you're talking about? I did post in there as well but waiting for an answer - so thought I'd post elsewhere as well!

Taking other peoples posts off topics isn't helpful.

Quick answers are you may be investigated for the current contract that's gone inside. This is IR35 101. IR35 is per contract.

You can shut the company and claim ER yes but you won't be able to open another company for 2 years after so you are stuck with umbrella for 2 years. If you go inside your last 3 months might come under scrutiny because HMRC have you on a list as outside before and inside after so nice and easy for them.

[cojak]

Well, it's also about Ltd to Umbrella and the ER implications, and your last post indicated that you had finished on the matter.

However, I am sorry that I posted a question that didn't directly relate to YOU, on YOUR thread.

No problem - I've moved it out.

And NLUK has indeed just answered your question.

So that's lovely, isn't it?

[sim2kuk]

Taking other peoples posts off topics isn't helpful.

Quick answers are you may be investigated for the current contract that's gone inside. This is IR35 101. IR35 is per contract.

You can shut the company and claim ER yes but you won't be able to open another company for 2 years after so you are stuck with umbrella for 2 years. If you go inside your last 3 months might come under scrutiny because HMRC have you on a list as outside before and inside after so nice and easy for them.

Thanks - so my previous 14 months will not automatically come under scrutiny though as the role has changed and a new contract has been taken.

Essentially it's a should I stay or should I go situation. I don't mind about going inside IR35 in the new role, as it's likely I'll be doing that anyway come April.

[sim2kuk]

No problem - I've moved it out.

And NLUK has indeed just answered your question.

So that's lovely, isn't it?

It's beautiful, ta!

[northernladuk]

Thanks - so my previous 14 months will not automatically come under scrutiny though as the role has changed and a new contract has been taken.

Essentially it's a should I stay or should I go situation. I don't mind about going inside IR35 in the new role, as it's likely I'll be doing that anyway come April.

14 months with same client or 14 months contracting?