Here's a thing...

[Lockhouse]

CEST assessment rejected by judge as contractor recoups unlawfully deducted tax

Apologies if posted elsewhere.

[Paralytic]

CEST assessment rejected by judge as contractor recoups unlawfully deducted tax

Apologies if posted elsewhere.

18 months old, but interesting. But, it didn't quite "open the floodgates", as was suggested back then, but perhaps the April changes will make it more likely.

However, this employment hokey-cockey is exactly why so many companies are simply banning PSCs rather than making determinations.

[SouWester]

That is very interesting.

If I were a client, I would see this as damned if you do and damned if you don't.

Assess as inside: risk of employment tribunal like this.
Assess as outside: risk of being held liable for tax that should have been deducted.

Fixed term employment contracts (incl. pro-rata employment rights) look like the least risky option from client perspective.

[eek]

That is very interesting.

If I were a client, I would see this as damned if you do and damned if you don't.

Assess as inside: risk of employment tribunal like this.
Assess as outside: risk of being held liable for tax that should have been deducted.

Fixed term employment contracts (incl. pro-rata employment rights) look like the least risky option from client perspective.

I believe this is only a temporary thing as the Key information documents that come into play from April should ensure everyone knows what is happening with the money so the argument won't wash much longer..

But it does mean there are a number of agencies and end clients who are about to get a nasty surprise as I believe Dave has a number of cases lined up.

And once again where was IPSE in this fight?

[DodgyAccountant]

link to barristers opinion on linked in

IR35 - Risk to Client / Business

"The IR35 test is the same test as the common law test for employment."

[eek]

IR35 - Risk to Client / Business

"The IR35 test is the same test as the common law test for employment."

Point 1 is a nasty one there that even I hadn't thought about...

[SouWester]

I believe this is only a temporary thing as the Key information documents that come into play from April should ensure everyone knows what is happening with the money so the argument won't wash much longer..

I did not know about KIDs so thanks for that.

However, from reading the story the claimant was aware that employer NI was going to be deducted before he took the contract. So, even if it's stated up front, does that mean the employment tribunal route is no longer valid?

Hooeee. Its going to take some time for all this to settle down isn't it... Taking refuge in a permie role looking more and more attractive.

[eek]

I did not know about KIDs so thanks for that.

However, from reading the story the claimant was aware that employer NI was going to be deducted before he took the contract. So, even if it's stated up front, does that mean the employment tribunal route is no longer valid?

Hooeee. Its going to take some time for all this to settle down isn't it... Taking refuge in a permie role looking more and more attractive.

It may well be valid - I suspect it's going to be harder once it dawns on agencies the mess they created for themselves back in 2017...

[ladymuck]

IR35 - Risk to Client / Business

"The IR35 test is the same test as the common law test for employment."

Thanks for sharing that, I hadn't seen it. Definitely food for thought. Simply written but not a simple topic.

[SimonMac]

CEST assessment rejected by judge as contractor recoups unlawfully deducted tax

Apologies if posted elsewhere.

They have updated CEST to v2 since then, so in HMRC's view problem solved