Inside IR35 - Outside from April

[Winger300]

I have a contract that I personally considered to be Inside IR35. It's a long term contract direct with a client, so I reasoned to be cautious and just get on with it without worrying about any IR35 investigation.

Now my client is adamant that I am outside IR35, and they're happy to take that risk.

This is kind of an unusual situation, is it ok to continue with this contract?

Is HMRC going to investigate and determine my inside IR35 deciscion was wrong?

[jamesbrown]

Is HMRC going to investigate and determine my inside IR35 deciscion was wrong?

Unlikely.

However, they might look at the outside determination post-April. But why would you care? It's neither your responsibility nor liability, assuming the client is a medium or large company.

Unusual situation indeed.

[Winger300]

It is indeed unusual. The contract is cross border also, so the client really doesn't want to declare me inside ir35.

[jamesbrown]

It is indeed unusual. The contract is cross border also, so the client really doesn't want to declare me inside ir35.

I wouldn’t worry about it, providing you get an SDS and confirmation that the client isn’t small. There’s no risk of an HMRC investigation for your current contract if you’ve been making deemed payments. I suppose the main issue is the tax you’ve been overpaying, but that was your choice and it sounds like you made it with eyes open.

[jamesbrown]

Oh, and you mention cross-border. Keep an eye out for the final legislation because the draft legislation is pretty woolly w/r to fully overseas supply chains (all overseas except YourCo).