I operate through a PSC and have been on an outside-IR35 contract with a UK-based recruitment agency for a few years. The client, for the purpose of this contract, is a large consultancy. This consultancy has a number of business clients in the UK, one of them being a large insurance agency. I have been working on insurance agency's projects across a number of offices they have in the UK. However, I have never had any formal contract or agreement with the insurance agency and have never given them any of my tax or PSC details. Even my timesheets are approved by the large consultancy, mentioned as the "client" in my contract.
In line with IR35 changes this year, this consultancy has appled a blanket ban on PSCs and is now asking me to continue working through PAYE arrangements or through an umbrella company. The usual story but with IR35 fears looming large, I am about to reject this offer and am instead toying with the idea of accepting an inside-IR35 contract being offered to me directly by the insurance agency itself. This contract, as usual, will be executed through a recruitment agency but different to the one I am currently contracted with.
My question is, is this set-up as risky as accepting PAYE arrangements while working for the "same client"? Will the fact that I will now be coming through a different recruitment agency and working, for the records, for a different client (the insurance agency instead of the consultancy) provide any mitigation in terms of avoiding risks of a prospective IR35 enquiry in the future? Also, is it safe to assume that on the basis of data taht will now be submitted, HMRC should believe I have actually switched contracts and am now operating on an inside-IR35 contract for a different client?
In line with IR35 changes this year, this consultancy has appled a blanket ban on PSCs and is now asking me to continue working through PAYE arrangements or through an umbrella company. The usual story but with IR35 fears looming large, I am about to reject this offer and am instead toying with the idea of accepting an inside-IR35 contract being offered to me directly by the insurance agency itself. This contract, as usual, will be executed through a recruitment agency but different to the one I am currently contracted with.
My question is, is this set-up as risky as accepting PAYE arrangements while working for the "same client"? Will the fact that I will now be coming through a different recruitment agency and working, for the records, for a different client (the insurance agency instead of the consultancy) provide any mitigation in terms of avoiding risks of a prospective IR35 enquiry in the future? Also, is it safe to assume that on the basis of data taht will now be submitted, HMRC should believe I have actually switched contracts and am now operating on an inside-IR35 contract for a different client?
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