SDS Inside Received after 6 month contract and moving to Umbrella SDS Inside Received after 6 month contract and moving to Umbrella
Posts 1 to 5 of 5
  1. #1

    Still gathering requirements...


    Join Date
    Mar 2017
    Posts
    21

    Default SDS Inside Received after 6 month contract and moving to Umbrella

    Hi,

    Friend operating under a LTD has just received a Inside SDS and has been asked to move to Umbrella in April.

    QDOS did review the initial contract and reached an Outside status after getting a few things clarified but friend is really keen to stay with client and move over to Umbrella in April as getting increase in day rate.

    How should he get HMRC off his back if he gets flagged for fraud some point in the future?

    Is it just a matter of asking the accountant to calculate the 6 months worth of taxes due, inform HMRC these are to be paid, and pay them before the tax year ends?

    Then will advise him to close down LTD in April via MVL.

  2. #2

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    43,528

    Default

    Plus interest and possible penalties and a messy investigation.

    Is he planning on doing this when they catch him or just hold his hands up or declare inside all along so he's in the clear?
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  3. #3

    Still gathering requirements...


    Join Date
    Mar 2017
    Posts
    21

    Default

    He's going to hold his hands up and organise payment before end of this tax year so that he is in the clear.

    Its 6 months worth of taxes that would be paid in light of new information (SDS) that gave clarity on the working practises during his 6 month period. Why would HMRC have an issue with this?
    Last edited by eldy; 16th March 2020 at 07:52.

  4. #4

    Contractor Among Contractors


    Join Date
    Jul 2019
    Posts
    1,058

    Default

    Quote Originally Posted by eldy View Post
    He's going to hold his hands up and organise payment before end of this tax year so that he is in the clear.

    Its 6 months worth of taxes that would be paid in light of new information (SDS) that gave clarity on the working practises during his 6 month period. Why would HMRC have an issue with this?
    This. There can a tendency on these boards (more recently served with undertones of schadenfreude) to always respond with a doom-and-gloom story.

    If they have been at the client for only 6 months, and want to self-declare as inside for that time, just get the accountant to fix that retrospectively for this tax year. No need to advise HMRC of anything (outside of usual reporting) - just summit accounts/Self Assessment as normal.
    Last edited by Paralytic; 16th March 2020 at 09:21.

  5. #5

    Super poster


    Join Date
    Apr 2015
    Posts
    2,913

    Default

    He legitimately thought he was outside and has a QDOS review to back that claim.

    Client disagrees. So he goes umbrella and closes his company. If HMRC starts an investigation and stops him closing his company, then as noted he can just change his tax treatment of this year and tell HMRC he's done so and end the matter.

    People with six months are not the ones HMRC most want to target.

    It's the people who stayed for 11 years that are in trouble, not this guy.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •