No status determination and final payment after 06/04/2020

**Anubis** · 21 January 2020, 10:31

Any payment made by your client on or after 6th April 2020 will allow them to determine the status - you will have no say in it.

You need to be paid prior to this or make sure you leave so that your final payment is received before 6th April. Alternatively you may be happy to continue as inside, although this opens you up to potential retrospective tax investigation by HMRC (no one knows what will happen - we are all stuck like you).

**eek** · 21 January 2020, 10:31

Originally posted by Speedbird676 View Post

I am currently in contract with a client, outside of IR35, with a contract due to expire on 31/01/2020. The client has asked me to extend until 31/03/2020, which would mean payment for my final invoice would be received towards the end of April.

The client's current position is that all contractors have end dates of 31/03/2020 whilst they work through the status determination process for those that they intend to extend. It is fully expected that those who are extended will be inside IR35.

There is no chance of my contract being extended. How should I expect my final payment be treated given there would be no status determination for my role?

You need a contract that states final payment will be made by April 3rd or refuse to accept the extension.

**GhostofTarbera** · 21 January 2020, 10:33

In reality you will get paid as usual, no client will go to the bother and HMRC won’t really care in the transition period

Sent from my iPhone using Contractor UK Forum

**Speedbird676** · 21 January 2020, 10:34

Originally posted by Anubis View Post

Any payment made by your client on or after 6th April 2020 will allow them to determine the status - you will have no say in it.

I appreciate I have no say in the determination, but it is the client telling me they won't be doing a status determination at all as I won't be here after March and the role will no longer exist.

It sounds like they would have to do a status determination to be able to make the payment?

**Anubis** · 21 January 2020, 10:35

Originally posted by GhostofTarbera View Post

In reality you will get paid as usual, no client will go to the bother and HMRC won’t really care in the transition period

Sent from my iPhone using Contractor UK Forum

Please read this. Be careful with this approach - no one knows what HMRC will do (they say one thing and do another all the time)

**Anubis** · 21 January 2020, 10:37

Originally posted by Speedbird676 View Post

I appreciate I have no say in the determination, but it is the client telling me they won't be doing a status determination at all as I won't be here after March and the role will no longer exist.

It sounds like they would have to do a status determination to be able to make the payment?

Correct. All about that payment date

You work through March means you'll get paid in April. Any payments made by the client on or after 6th April means THEY can say you are inside, which by the sounds of it is likely to happen (inside also means roughly 20 - 25% less in your pocket and since it's a payment for you personally and taxes have been taken out of it then there is no reason for it to be paid to your company as before - it's a different ball game).

It doesn't matter if you actually worked beyond this date. Its about when you get paid.

Also...if they have no work for you and letting you go, why are they not stating you are an outside contractor. You are not ongoing "off the books" perm inside staff

**Manic** · 21 January 2020, 11:01

But......

I suspect lots of agencies have 90-120 day terms so the reality is the end client is probably paying some stuff in April that was billed in Jan/Feb.

**eek** · 21 January 2020, 11:10

Originally posted by Manic View Post

But......

I suspect lots of agencies have 90-120 day terms so the reality is the end client is probably paying some stuff in April that was billed in Jan/Feb.

Yep but let's not go there.

**Speedbird676** · 21 January 2020, 12:14

Thanks for all your replies.

It sounds like it is safer to accept an extension only to the end of February with the final payment due end of March.

No status determination and final payment after 06/04/2020