Client's responsibility to perform IR35 status check? Client's responsibility to perform IR35 status check?
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  1. #1

    Nervous Newbie


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    Default Client's responsibility to perform IR35 status check?

    Hi all. New to this forum so apologies if this has already been covered - I have had a look through the forum and also elsewhere and can't really find a definitive answer.

    I'm a long terms contractor working mainly from home - work for a Uk company who is part of a global group of companies. I invoice my office in the Uk but the timesheet/invoice is ultimately approved and paid from abroad.

    I've been trying to get the Uk office to look into the IR35 assessment for a while and no-one really knows who should be doing it. Doesn't help that the company have had 3 HR managers in the last 6 months.

    Am I right in assuming it's the company's responsibility to do this - and what are the consequences of them not doing so (Other than me deciding to leave the company!).

    Many thanks.

  2. #2

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    How long is long term?

    Who is your contract with?

    I think this article and particularly the paragraph in italics answers your question.

    IR35: What to do with an overseas client?
    Last edited by northernladuk; 2nd March 2020 at 10:47.
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  3. #3

    Still gathering requirements...


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    Sounds like they wouldn't be classed as a small business and since there is a UK presence in the supply chain then from what I understand if they don't fulfil their responsibility to do make a determination, the liability still rests with them and can't come back to you.

    That said, the worry I'd have in your position is when they do wake up and make the determination they determine you Inside, which puts you at risk for any retrospective investigation. Having the determination in hand now would at least give you time to respond to that - if it comes in the new year then it's trickier.

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    Parent company is Music Tribe - my direct client is Midas. Submit invoices into Uk, approved in the far east and paid from a German bank account!! Been there for 15 years but have had other small concurrent contracts during that time (although not recently).

    The link was useful - thanks

    And yes that's the worry - if I carry on and ultimately get assessed as inside do I then get chased by HMRC retrospectively.

    I don't think my case is clear cut from what I've read - work from home most of the time, have quite abit of my own equipment (company laptop as I have to work via VPN into their servers), fairly autonomous in how I arrange my tasks. However - who knows if I'll be assessed as inside or not.

  5. #5

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    Quote Originally Posted by grcook View Post
    Parent company is Music Tribe - my direct client is Midas. Submit invoices into Uk, approved in the far east and paid from a German bank account!! Been there for 15 years but have had other small concurrent contracts during that time (although not recently).
    So you are doing work for a UK entity so you are part of the legislation and they should do an assessment on how you work for them.

    And yes that's the worry - if I carry on and ultimately get assessed as inside do I then get chased by HMRC retrospectively.
    If you've got a lot of years behind you it get's even more of a worry.
    I don't think my case is clear cut from what I've read - work from home most of the time, have quite abit of my own equipment (company laptop as I have to work via VPN into their servers), fairly autonomous in how I arrange my tasks. However - who knows if I'll be assessed as inside or not.
    None of those things have any impact on IR35. Permies can work like that and the own kit is a minor point at best.

    Legislation hits in 4 weeks so you really are on the clock now.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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