Interesting IR35 finding / possible appeal

[faxfan]

Hi All,

Looking for some guidance / views on this one (for a change) -

The role of myself several of my colleagues (same role) have been found to be within IR35. The basic setup is this that I am engaged by an agency, to a "client". The "client" is using myself to fulfil a contract with another company "end client". This contract is bid on annual and renewed for the past 3 years (we've actually been in the same role with the end client through different clients for 11 years). NOTE: never directly engaged by the "end client".

Earlier this week we had a call with the client regarding IR35 was quite enlightening. I summarised the meeting -

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1. The <xx> role has been found to be within IR35.
2. <client contact> is building a business case to have the <xx> FTE role created within <client>
3. The <xx> FTE role would be unique to the <end client> contract, should the <end client> contract be lost the <xx> FTE would cease to exist. Albeit alternative roles focusing on one of our broad spectrum of skills could potentially be offered but probably not on the same basis / package as the very specific <xx> FTE role.
4. IR35 is intended to stop PSC's fulfilling FTE roles / tax people fulfilling FTE roles at the appropriate level.

Points 3 and 4 seem to be directly at odds with each other as the <xx> role is unique to the contract and unavailable as an FTE role even within an organization as large as <client> is.
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What you guys reckon??

[northernladuk]

we've actually been in the same role with the end client through different clients for 11 years).

They got it bang on. You are absolutely and royally ****ed.

You are in damage control now. I suggest something like locking yourself in a nuclear bunker for a couple of years.

/thread

[jamesbrown]

I see no contradiction here. There may be only one company in the world that manufactures super widgets and they can still employ super widget employees for the duration of their super widget manufacturing operations. Every contract is unique to some degree and that is irrelevant w/r to IR35.

If you've been deemed inside, you're inside, and you probably were all along. Time to pay your back taxes.

[GhostofTarbera]

That’s like £600K in back taxes HMRC will be looking for from you - you are bang to rights

Prey the coronavirus gets you before the tax man


Sent from my iPhone using Contractor UK Forum

[SeededLoaf]

Have they just run a CEST on your role or already gone as far as submitting SDS?

[northernladuk]

Have they just run a CEST on your role or already gone as far as submitting SDS?

What does it matter now?

[SeededLoaf]

What does it matter now?

I'd have thought the CEST is only a problem if you are investigated wheras the SDS submission will increase your chances by a million fold.

[northernladuk]

I'd have thought the CEST is only a problem if you are investigated wheras the SDS submission will increase your chances by a million fold.

He's got 11 years at a client, 3 with last consultancy and less than three weeks to go. No amount of nit picking is going to help. This is exactly the situation HMRC are looking for and they'll be patting themselves on the back for nailing it.
Nothing he can do now except try and mitigate the life changing amount of money he's set to possibly lose.

[northernladuk]

Interesting that the OP kinda knew his role was going inside back in Sept. Begs the question why has he gotten himself in this mess three weeks before D-Day..

https://www.contractoruk.com/forums/...move-ir35.html

I've a feeling Cojak might have changed her mind now...

I have to say that I feel for you faxfan.

[cojak]

You haven’t got this sorted out by now?!?

What on Earth have you been doing in the meantime- just hoping it would all go away??