Hello all,
Current contract is outside IR35 and direct with client (no agency involved). Client is assessing all contracts and aims to "make a determination" by the end of January. Given that they are quite risk averse, I am expecting that the determination will be inside IR35 and that they will want people to go on payroll.
My contract only runs until the end of June, so an extra 3 months worth of invoices is not, in my view, worth the risk of being seen to have gone from outside to inside. To mitigate that risk, I am preparing for the eventuality that I may need to give notice of termination of the contract in time to receive payment of the final invoice no later than 5th April. Happily, they are fast payers and have never taken more than 10 days to pay up even though I am on 30 day invoicing, so I can leave it a little later than some .....
HOWEVER, there is a slim chance that they will make me some kind of offer that is palatable, and I would like to stay if possible as I am enjoying the project a great deal and think it would be a nice place to work, if permie looks to be the only option going forward.
Now what I am asking myself is: if I took a permie/on payroll FTC role with this client, just how risky is that? As far as I understand it, IR35 is correctly called the intermediaries legislation and one of the effects of it is to require agencies to submit their report stating who is working through them, and on what basis (inside/outside). Since there is no intermediary in my case, just my PSC dealing directly with ClientCo, presumably there is no reporting of my contract either. So am I flying under the radar here? I can't see how HMRC would have any idea of where I was working, unless ClientCo told them, and I can't see why they would have to do that. Does anybody know whether I am correct in that assumption?
I'd like to know this, as if they do make me some kind of offer, my attitude to the attendant risk will vary depending on whether there is any real likelihood of HMRC joining the dots and establishing that I offered services to the same client via a PSC.
Before anyone suggests that an SDS would give the game away, I have told ClientCo that I do not want a written SDS, nor do I want any document to exist prior to 5th April. I have asked for verbal confirmation of their determination in the first instance, and if the position looks untenable, I will give notice of termination of the contract and make sure that I am removed from the pool of people/contracts being assessed, as no determination will be necessary if I am not there after April. I will also be exercising my rights under GDPR to have all of my data removed from ClientCo's systems.
All opinions gratefully received
Current contract is outside IR35 and direct with client (no agency involved). Client is assessing all contracts and aims to "make a determination" by the end of January. Given that they are quite risk averse, I am expecting that the determination will be inside IR35 and that they will want people to go on payroll.
My contract only runs until the end of June, so an extra 3 months worth of invoices is not, in my view, worth the risk of being seen to have gone from outside to inside. To mitigate that risk, I am preparing for the eventuality that I may need to give notice of termination of the contract in time to receive payment of the final invoice no later than 5th April. Happily, they are fast payers and have never taken more than 10 days to pay up even though I am on 30 day invoicing, so I can leave it a little later than some .....
HOWEVER, there is a slim chance that they will make me some kind of offer that is palatable, and I would like to stay if possible as I am enjoying the project a great deal and think it would be a nice place to work, if permie looks to be the only option going forward.
Now what I am asking myself is: if I took a permie/on payroll FTC role with this client, just how risky is that? As far as I understand it, IR35 is correctly called the intermediaries legislation and one of the effects of it is to require agencies to submit their report stating who is working through them, and on what basis (inside/outside). Since there is no intermediary in my case, just my PSC dealing directly with ClientCo, presumably there is no reporting of my contract either. So am I flying under the radar here? I can't see how HMRC would have any idea of where I was working, unless ClientCo told them, and I can't see why they would have to do that. Does anybody know whether I am correct in that assumption?
I'd like to know this, as if they do make me some kind of offer, my attitude to the attendant risk will vary depending on whether there is any real likelihood of HMRC joining the dots and establishing that I offered services to the same client via a PSC.
Before anyone suggests that an SDS would give the game away, I have told ClientCo that I do not want a written SDS, nor do I want any document to exist prior to 5th April. I have asked for verbal confirmation of their determination in the first instance, and if the position looks untenable, I will give notice of termination of the contract and make sure that I am removed from the pool of people/contracts being assessed, as no determination will be necessary if I am not there after April. I will also be exercising my rights under GDPR to have all of my data removed from ClientCo's systems.
All opinions gratefully received
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