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Updated government factsheet (can't spot the change though)

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    #21
    Originally posted by rootsnall View Post
    I just baulked at closing my Ltd down for that reason. After a 4 year contract. I don't think it being closed means you are scot free by any means. But I just thought attempting to close it now ads a pinch point I didn't need. I'm keeping mine open and will do some work elsewhere before any closure. I can't decide if it's preferable to work inside or outside in my next contract in terms of not drawing attention to my previous 4 year job.
    Do you have more than £25k in your company. If you do I would be closing it in case Entrepreneurs relief rules are changed.
    merely at clientco for the entertainment

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      #22
      Originally posted by eek View Post
      Do you have more than £25k in your company. If you do I would be closing it in case Entrepreneurs relief rules are changed.
      I do, but not much more, and keeping my Ltd open into the next tax year has other advantages in terms of using tax bands. I will gladly give up anything entrepreneurs relief offers to stay off any radars.

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        #23
        https://assets.publishing.service.go..._factsheet.pdf

        Is this another version?

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          #24
          Originally posted by rootsnall View Post
          I just baulked at closing my Ltd down for that reason. After a 4 year contract. I don't think it being closed means you are scot free by any means. But I just thought attempting to close it now ads a pinch point I didn't need. I'm keeping mine open and will do some work elsewhere before any closure. I can't decide if it's preferable to work inside or outside in my next contract in terms of not drawing attention to my previous 4 year job.
          I'm in a very similar situation to you, although I have more than enough amount of money in my ltd company that MVL would be the preferred option.

          I'm almost tempted to close(MVL) the business down on starting a new client and go umbrella for 2 years, before they change the ER rules.

          I'm not too worried about retrospective investigations as my client is getting rid of all contractors, and I think its more likely HMRC will retrospectively go after clients who determine job roles as inside that contractors had been previously claiming as outside, especially when the contractors are still there

          Anyone have thoughts on rootsnall's last part of his question?

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            #25
            Originally posted by BABABlackSheep View Post

            I'm not too worried about retrospective investigations as my client is getting rid of all contractors, and I think its more likely HMRC will retrospectively go after clients who determine job roles as inside that contractors had been previously claiming as outside, especially when the contractors are still there ?
            That could be the case for most contractors though. Operating outside as normally, you leave start a new engagement elsewhere. You're previous client then panics and deems your previous role with them as inside and the filth open an investigation based on the client's sweeping assessment and a letter is sent out asking more details.

            No-one is safe and no-one knows exactly what they plan on doing. Unless you have a bullet proof contract review and working practices in place (even then the client could disagree later on down the line if management change etc). Closing the company does seem to be the most sensible option and starting again after two years once the dust has settled.

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              #26
              Originally posted by CompoundOverload View Post
              That could be the case for most contractors though. Operating outside as normally, you leave start a new engagement elsewhere. You're previous client then panics and deems your previous role with them as inside and the filth open an investigation based on the client's sweeping assessment and a letter is sent out asking more details.

              No-one is safe and no-one knows exactly what they plan on doing. Unless you have a bullet proof contract review and working practices in place (even then the client could disagree later on down the line if management change etc). Closing the company does seem to be the most sensible option and starting again after two years once the dust has settled.
              But you are not there so what your previous end client decides is completely irrelevant. They can pretend it was inside but the person responsible for actually making the decision was the contractor and they will have paperwork that shows that when they were there the contract was outside.

              The only thing people need to worry about is shifting from an outside IR35 contract to one inside IR35 at the same client using the same agency. HMRC won't have time to handle anything else.
              merely at clientco for the entertainment

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                #27
                Originally posted by eek View Post
                But you are not there so what your previous end client decides is completely irrelevant. They can pretend it was inside but the person responsible for actually making the decision was the contractor and they will have paperwork that shows that when they were there the contract was outside.

                The only thing people need to worry about is shifting from an outside IR35 contract to one inside IR35 at the same client using the same agency. HMRC won't have time to handle anything else.
                Why were GSK contractors all in a tizz when the blanket letters went out? There were contractors that had left the firm but got caught up in the investigation because of the specific year the filth went snooping? I understand if the existing contractors were caught up in it if GSK had said all contractors are now inside and people stayed on, when they were outside previously.

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                  #28
                  Originally posted by CompoundOverload View Post
                  Why were GSK contractors all in a tizz when the blanket letters went out? There were contractors that had left the firm but got caught up in the investigation because of the specific year the filth went snooping? I understand if the existing contractors were caught up in it if GSK had said all contractors are now inside and people stayed on, when they were outside previously.
                  Do you have tax investigation cover?
                  If you do you pass the information to them to deal with.

                  If you don't you panic and pay up.

                  Also I'm sorry but GSK was full of permietractors who had been there years. The reason people panicked is because they were caught unprepared and knew they were guilty.
                  merely at clientco for the entertainment

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                    #29
                    You've seen those machines that come along grab a tree trunk and rattle the fruit off a tree. They get 95% of the fruit then move on. They are still much more efficient than employing lots of people hand-picking 100% of the fruit.

                    Lesson, don't get rattled..stick around. Even if they think you are juicy, do they really want to climb that tree for a piece of cheap fruit, when you still might not be ripe for the taking

                    Comment


                      #30
                      Originally posted by CompoundOverload View Post
                      That could be the case for most contractors though. Operating outside as normally, you leave start a new engagement elsewhere. You're previous client then panics and deems your previous role with them as inside and the filth open an investigation based on the client's sweeping assessment and a letter is sent out asking more details.

                      No-one is safe and no-one knows exactly what they plan on doing. Unless you have a bullet proof contract review and working practices in place (even then the client could disagree later on down the line if management change etc). Closing the company does seem to be the most sensible option and starting again after two years once the dust has settled.
                      No-one is safe and no-one knows exactly what they plan on doing.
                      agreed. But then it would be sensible to identify all the possible scenarios and determine what action is needed for each. As I see it, here are the scenarios -

                      1. the client doesn't renew your contract at all after Feb/Mar 2020
                      2. the client undertakes an SDS and
                      a. declares the contract outside
                      b. declares the contract inside
                      3. the client doesn't undertake an SDS and
                      a. employs you on PAYE
                      b. employs you on an FTC
                      c. insists you join an umbrella

                      Each person's financial situation will clearly be unique and their approach to any of these scenarios will be driven by that situation.
                      Last edited by JohntheBike; 15 January 2020, 15:49.

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