Hi everyone,
I've recently been approached by a "small" consultancy who've evidently received work from one of the large banks who've got a blanket ban on engaging outside IR35 contractors post April. What they've basically said is that:
- They agreed to an engagement with Big Bank Inc. on a SoW basis
- They are now subcontracting for resource (i.e., possibly me!) to fulfil the work
- They say that because they qualify as a small company for the purposes of IR35 reform (low enough balance sheet/number of employees/turnover), if I was engaged by them, I'd be able to set my own IR35 status.
Anyone been approached with outside IR35 opportunities the same way recently? Any chance of taking up such an opportunity coming back at me?
On one hand, can't see how... worst case scenario I can see is HMRC telling Big Bank Inc. they didn't avoid liability for determining my IR35 status by contracting with a small consultancy... though that would mean the liability for an incorrect outside IR35 decision would rest with... the Big Bank by definition right?...who could then pay the tax penalty or fight it in court.
On the other hand it seems to be too easy a work around to be true, so happy to get any risks I'm failing to consider here.
Thanks!
I've recently been approached by a "small" consultancy who've evidently received work from one of the large banks who've got a blanket ban on engaging outside IR35 contractors post April. What they've basically said is that:
- They agreed to an engagement with Big Bank Inc. on a SoW basis
- They are now subcontracting for resource (i.e., possibly me!) to fulfil the work
- They say that because they qualify as a small company for the purposes of IR35 reform (low enough balance sheet/number of employees/turnover), if I was engaged by them, I'd be able to set my own IR35 status.
Anyone been approached with outside IR35 opportunities the same way recently? Any chance of taking up such an opportunity coming back at me?
On one hand, can't see how... worst case scenario I can see is HMRC telling Big Bank Inc. they didn't avoid liability for determining my IR35 status by contracting with a small consultancy... though that would mean the liability for an incorrect outside IR35 decision would rest with... the Big Bank by definition right?...who could then pay the tax penalty or fight it in court.
On the other hand it seems to be too easy a work around to be true, so happy to get any risks I'm failing to consider here.
Thanks!
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