Inside Determination based on Future Contract

[Emeus Cuica]

Not sure if this has been covered in any of the other conversations but this is my situation.
Client has told me that I will be inside IR35 post April 6 but have said that the determination is based on a future contract that hasn't even been worded yet but would certainly not contain a substitution clause.

My current contract DOES have a substitution clause and I've had it reviewed by QDOS and I'm happy that my WPs are IR35 friendly.

So, my question is, will I be able to use this as some kind of leverage in the event of an HMRC investigation? That I genuinely was outside of IR35 and only inside now because the client has made these changes to the contract and WPs?

[Pring]

It’s likely that HMRC would argue that the previous contract clause was a sham and the client would never have accepted a substitution with old contract. Do you have a Confirmation of Arrangements letter saying that they would, or are you confident that the client would confirm that they would have accepted a substitute before but not with new contract? What’s changed that means they wouldn’t?

[northernladuk]

No. If the ient won't allow subs in a future contract that would strongly indicate you weren't allow to substitute in the past even if its on your contract.

Bottom line is if you are doing the same role and client decides it's inside it would tell HMRC in no uncertain terms they believe it was inside all along. No amount of glitter is going to make it any different.

[GhostofTarbera]

Looks like you have been inside IR35 all along


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[Emeus Cuica]

No. If the client won't allow subs in a future contract that would strongly indicate you weren't allow to substitute in the past even if its on your contract.

Bottom line is if you are doing the same role and client decides it's inside it would tell HMRC in no uncertain terms they believe it was inside all along. No amount of glitter is going to make it any different.

I've been extended u til Apri 5 but they want to extend me until October inside IR35.

I've been there 3 years and ireally do worried about being hit up for all that backdated tax.

On the other hand, I don't want to be satting on the binch for the next 6 months eating into the money I have in my Limited. This corona virus panic is going to make finding a new role almost impossible I'd say.

Coukd he wrong though.

[CosmicWave]

I've been extended u til Apri 5 but they want to extend me until October inside IR35.

Hmmm, that clearly tells me (and hence would also to HMRC) that there are no changes to the contract or WPs between future and all 3 years in past, and hence you were clearly Inside all along.
The subst. clause and WPs thing was a sham.

I've been there 3 years and ireally do worried about being hit up for all that backdated tax.

Of course, you should be. You were an employee all along, and you did not pay the appropriate taxes, NIs and now, interest and penalties for not paying them so far too.

On the other hand, I don't want to be satting on the binch for the next 6 months eating into the money I have in my Limited. This corona virus panic is going to make finding a new role almost impossible I'd say.

That is your problem, not of HMRC's.
You were not paying the relevant employee related taxes all along, and sat on it for long now.
Are you not still concerned about that "sitting" on govt's money, and not paying it????
Time to pay now, I am sorry.

Your employer (sorry, they are not your client) has clearly asserted now and will do so if HMRC come calling them for the past check too, that you were an employee all along (Inside).