Extent of IR35 Liability

[NinjaMonkey]

I sense this may have been asked already, but I can't find a clear answer on any of the threads, so apologies for duplication - it is my first post

I have been contracting since 2012, but my current contract commenced in November 2019, and is due to end on March 31st.

This is now the fifth different client I have had.

I am working on the assumption that my client will declare all Contractors are inside IR35, and future contract extensions are inside IR35. Assuming that I remain and sign an extension, I understand that this puts me in a difficult position if HMRC come knocking later for reasons that have been covered to death already.

My question is that for backdated tax, am I on the hook for all my previous contracts as a result of signing this extension, or am I just on the hook for the work I have done for this client?

I assume that I would only be on the hook for the current contract, and HMRC would have to prove each previous contract on a case by case basis. Is any one aware of any previous cases where contractors have been caught for multiple contracts?

The reason I am asking is that I'm trying to form a reasonable view of risk. I feel that if I had to only pay backdated tax from November, I could live with that risk, as I'm really enjoying the current contract and would prefer not to leave.

For clarity, I have very strong reason to believe there will be an extension as the Programme of work is another year minimum.

Thanks in advance.

[GhostofTarbera]

All previous contracts, on a contact by contact basis

Likely hood of getting investigated is same as getting hit by lightning while getting eating by a shark at same time

Get some insurance for existing contact and relax


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[northernladuk]

The floodgates appear to have opened and the meerkats are raising their heads.

[Paralytic]

I have been contracting since 2012, but my current contract commenced in November 2019, and is due to end on March 31st.

Unless your payment terms are less than 1 week, do you realise that your final month's invoice (paid after April 6 2020) is covered by the new legislation and your client will have to make a determination that tells you whether that payment needs to be taxed at source by the fee payer (typically the agency)?

[GhostofTarbera]

Extent of IR35 Liability

Needs to be paid latest 3rd April due to BACS cycle


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[hairymouse]

You can buy QDOS insurance that will cover you for all those old contracts for less than £300. And QDOS barely asks anything about them, which gives me the idea that the risk is pretty low.

[northernladuk]

You can buy QDOS insurance that will cover you for all those old contracts for less than £300. And QDOS barely asks anything about them, which gives me the idea that the risk is pretty low.

Could. Not so sure about can.