Retrospective IR35 investigations

[jamesbrown]

Their own guidance document would blow a case based on retrospective enquiry to pieces.

This is head-in-sand stuff, I'm afraid. HMRC guidance is frequently based in a parallel universe and it is rarely consistent over time. When politicians say things like "no current plans", they mean "we have future plans". When HMRC guidance says things like "will focus its efforts on ensuring businesses comply with the reform rather than focusing on historic cases", it means "we'll certainly look at historic cases, but we'll also look at some other stuff as well".

Assume the worst and you won't be disappointed.

[mrdonuts]

where companies take the blanket approach of just not using ltd company contractors then there is no assertion that you were or are inside ir35 so if you stayed with the same company after april 2020 then in that situation it seems unlikely they would try and retrospectively argue you were inside ir35 and seems no more likely to attract an investigation than roles before april 2020.

[BR14]

oh, dear, yet another thread full of headless chickens with twitching arses searching for the magic solution <which doesn't exist>

[Martin Bank Holiday]

where companies take the blanket approach of just not using ltd company contractors then there is no assertion that you were or are inside ir35 so if you stayed with the same company after april 2020 then in that situation it seems unlikely they would try and retrospectively argue you were inside ir35 and seems no more likely to attract an investigation than roles before april 2020.

But the thing is MrDonuts if you stay after April 2020 you WILL be working inside IR35. It's a completely binary situation.

[NeedTheSunshine]

It isn't retrospective if you should have always been declaring yourself inside rather than outside. For HMRC that applies to the majority of contractors. Anyone who stays with the current client and has gone from being outside to inside via umbrella or perm is an easy target for HMRC. Why wouldn't they go after such a an easy picking? They'd be stupid not to.

As a previous poster pointed out, you need to look at HMRC's wording very carefully.

[mikedarv]

It isn't retrospective if you should have always been declaring yourself inside rather than outside. For HMRC that applies to the majority of contractors. Anyone who stays with the current client and has gone from being outside to inside via umbrella or perm is an easy target for HMRC. Why wouldn't they go after such a an easy picking? They'd be stupid not to.

As a previous poster pointed out, you need to look at HMRC's wording very carefully.

As far as I can tell talking to contractor colleagues across the bank I work at they are either converting current job to umbrella, converting current job to perm or leaving.

I don't think many of them have any clue about being a possible HMRC target. Possibly as the bank has made it seem like it's such an easy transition. It's obviously not the banks job to let them know but it's pretty bad on their behalf to ignore it as I'm sure they know it might be possible especially as it might effect the welfare of a future permanent employee.

[BABABlackSheep]

where companies take the blanket approach of just not using ltd company contractors then there is no assertion that you were or are inside ir35 so if you stayed with the same company after april 2020 then in that situation it seems unlikely they would try and retrospectively argue you were inside ir35 and seems no more likely to attract an investigation than roles before april 2020.

I know people who are doing exactly this. Claiming outside before and staying under an umbrella come March.

I argued myself here that due to no inside or outside decision, just no ltd company contractors allowed should help, but the more I read the less I believe it.

I got out.

[mrdonuts]

why would taking a role via an umbrella be classed as inside ir35?

taking a role via an ltd that is assessed as inside ir35, i can understand why that would raise HMRC eyebrows but not the former

[BR14]

why would taking a role via an umbrella be classed as inside ir35?

taking a role via an ltd that is assessed as inside ir35, i can understand why that would raise HMRC eyebrows but not the former

oh, good grief!

[ChimpMaster]

oh, good grief!

But he has a point.

Avoid the SDS and move to an Umbrella before April. Not ideal but not the worst impact.


BTW

contracting is dead.