Inside IR35 & I Want to Stay Inside IR35 & I Want to Stay - Page 2
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  1. #11

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    Quote Originally Posted by Martin Bank Holiday View Post
    Supposing I'm investigated in the future after already having paid corporation & dividend tax on the year in which I worked the outside IR35 portion. Presumably these amounts would be deductible from the PAYE/EeNIC/ErNIC liability?
    Maybe. I don't know. However, if you plan for the worst, you won't be caught short. Second guessing what they may let you off is not a smart move as there'll be interest and penalties to pay too.

  2. #12

    More time posting than coding


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    Quote Originally Posted by Martin Bank Holiday View Post
    Not really sure what the market is like for javascript devs at the moment but I predict a spell on the bench before I find a gig within a reasonable commuting distance (I'm ruling out anything that involves staying away from home unless it's outside IR35).
    I don't know specifically about javascript devs, but generally the market is absolutely horrible right now for most people. Not only is the amount of available contracts way down, but the amount of competition for each role has increased. Contracts that used to pay £700 per day are being listed at £300 per day INSIDE of IR35.

    I've been contracting for 15 years and every time I've been on the bench I've gone over to the "State of the Market" thread and read how tough the market is. And then found new contract within 2 or three months at most. This time is very different, maybe one or two appropriate roles on the job boards at %75 of my normal rate, and the phone is silent.

    I can't offer any insight into the tax stuff, but don't underestimate the current market slowdown.

  3. #13

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    Quote Originally Posted by ladymuck View Post
    Maybe. I don't know. However, if you plan for the worst, you won't be caught short. Second guessing what they may let you off is not a smart move as there'll be interest and penalties to pay too.
    I thought having done due diligence and getting my contract reviewed meant that penalties don't apply?

    Also, would my QDOS IR35 insurance pay out in this scenario since I was happy at the time of starting the contract that my contract & working practices were outside of IR35?

    Edit: Just read MrRossi's thread on the QDOS insurance. Interesting one - it seems the insurance is valid (ie the cover that actually pays out what HMRC demands) if you can show that your working practices are outside of IR35. Don't know what happens when you get an overly pessimistic determination from your client that puts you inside.
    Last edited by Martin Bank Holiday; 17th January 2020 at 13:05.

  4. #14

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    Quote Originally Posted by Martin Bank Holiday View Post
    I thought having done due diligence and getting my contract reviewed meant that penalties don't apply?

    Also, would my QDOS IR35 insurance pay out in this scenario since I was happy at the time of starting the contract that my contract & working practices were outside of IR35?

    Edit: Just read MrRossi's thread on the QDOS insurance. Interesting one - it seems the insurance is valid (ie the cover that actually pays out what HMRC demands) if you can show that your working practices are outside of IR35. Don't know what happens when you get an overly pessimistic determination from your client that puts you inside.
    Again. I don't know.

    It's up to you and your risk appetite.

    Plan for the worst, hope for the best.

    Or do it your way. Your choice.

  5. #15

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    Quote Originally Posted by ladymuck View Post
    Again. I don't know.

    It's up to you and your risk appetite.

    Plan for the worst, hope for the best.

    Or do it your way. Your choice.
    Indeed. It's that risk vs the risk of an extended stay on the bench.

    Crystal ball required methinks.

  6. #16

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    Quote Originally Posted by Martin Bank Holiday View Post
    I've mentioned in previous posts that the client is no longer engaging with contractors whether inside or outside. The risk is being pushed to a single preferred agency & the outcome will be that the agency will set up a payroll & deduct PAYE.
    How many times, oh, how many times? Ah!

    being inside IR35 is not the same as working via an umbrella/agency as employee. So stop worrying and stay via an brolly. You are safe.

  7. #17

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    Quote Originally Posted by Martin Bank Holiday View Post
    Indeed. It's that risk vs the risk of an extended stay on the bench.

    Crystal ball required methinks.
    Does this situation change if you close down your LTD company? With company closure does the risk exposure on backdated tax shuts down as well?

  8. #18

    Still gathering requirements...


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    Quote Originally Posted by Martin Bank Holiday View Post
    Supposing I'm investigated in the future after already having paid corporation & dividend tax on the year in which I worked the outside IR35 portion. Presumably these amounts would be deductible from the PAYE/EeNIC/ErNIC liability?

    Quote Originally Posted by cojak View Post
    I very much doubt it, but no-one really knows.

    It's a gamble/risk either way.

    (But as others have said only a 6 month one in your case.)

    As the general principle is that tax/NI would be recalculated based on you being an employee, whatever you paid based on erroneously assuming you were Outside would be deducted from the gross calculation amount due

    At least that's what was reported as happening in the BBC cases.

  9. #19

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    Quote Originally Posted by thesquaremile View Post
    Does this situation change if you close down your LTD company? With company closure does the risk exposure on backdated tax shuts down as well?
    I'm new here, but I would assume NO, otherwise everyone who was nervous would close down their company asap! The tax liability is yours personally.

  10. #20

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    Quote Originally Posted by quantum77 View Post
    I'm new here, but I would assume NO, otherwise everyone who was nervous would close down their company asap! The tax liability is yours personally.
    No, IR35 is a company liability, not a personal liability. It is a failure to operate PAYE/NICs correctly (deemed payments). If you get it wrong, your company pays, not you personally. Transfer of debt from a company to an individual, such as a director, has a high bar (negligence).

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