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  1. #1

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    Default Out of contractor hands

    HMRC tipped to leave contractors alone under IR35 reform, but end-users told, ‘be prepared’

    Looks like the HMRC won’t be pestering you at all about the IR35 status of a contract in future and will go straight to the client. They probably know that working practices can be key to winning cases and will seek the client’s version of the truth on them. Ouch.
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  2. #2

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    Yep, there's nothing surprising here - this was the motivation for the reform. Remember that the 2021 version of IR35 is closer to the intended version in 2000, before lobbying killed it. Policing at the level of individual contractors was always a stupid idea when you have clients that have N contractors, many of whom are operating roughly the same working practices, and the client is much less likely to disappear than a PSC and more likely to have risk-averse legal and compliance.

  3. #3

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    This does give some level of comfort for those that moved from LTD company to Umbrella around the start of this year

    "“In a recent webinar HMRC confirmed…[saying], ‘HMRC wants to reassure workers that their intermediary entity will not be subject to new compliance checks using information from the off payroll working reforms, for tax years prior to 6 April 2021, unless HMRC has reason to suspect fraud or other criminal behaviour.’”

    Of course, we've no idea what HMRC might regards as fraud.
    Last edited by Paralytic; 11th November 2020 at 15:19.

  4. #4

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    Quote Originally Posted by Paralytic View Post
    This does give some level of comfort for those that moved from LTD company to Umbrella around the start of this year

    "“In a recent webinar HMRC confirmed…[saying], ‘HMRC wants to reassure workers that their intermediary entity will not be subject to new compliance checks using information from the off payroll working reforms, for tax years prior to 6 April 2021, unless HMRC has reason to suspect fraud or other criminal behaviour.’”

    Of course, we've no idea what HMRC might regards as fraud.
    HMRC would regard not paying the appropriate tax of an employee as fraud...
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  5. #5

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    Quote Originally Posted by eek View Post
    HMRC would regard not paying the appropriate tax of an employee as fraud...
    I know what you're saying, but I get a sense that they will be more forward-looking and only go after individuals that cross their desk for other/additional reasons, as opposed to the previous fear that they'd to a bulk target of those moving from Ltd to Umbrella.

    I could well be wrong though.

  6. #6

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    That's absolutely awful news for the `outside to inside to backtrack outside to inside again` crowd won't it?

    HMRC - These xx contractors are inside?
    Client - Yes
    HMRC - Have their roles changed?
    Client - No
    HMRC - Thank you very much indeed.

    Stuffed before they even know let alone be able to defend?
    Last edited by northernladuk; 11th November 2020 at 15:49.
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  7. #7

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    Quote Originally Posted by northernladuk View Post
    That's absolutely awful news for the `outside to inside to backtrack outside to inside again` crowd won't it?

    HMRC - These xx contractors are inside?
    Client - Yes
    HMRC - Have their roles changed?
    Client - No
    HMRC - Thank you very much indeed.

    Stuffed before they even know let alone be able to defend.
    Yeah, but there was never any doubt about that. Anyone who gets caught in that situation really only has themselves to blame.

  8. #8

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    Quote Originally Posted by Paralytic View Post
    It's likely I will be wrong though.
    FTFY
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    Quote Originally Posted by jamesbrown View Post
    Yeah, but there was never any doubt about that. Anyone who gets caught in that situation really only has themselves to blame.
    Absolutely but the mentality we've seen of being one in millions so it won't be me will have gone. HMRC contact a client to look at their overall working practices and get every contractor in one go. GSK v2.0 but with teeth?
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  10. #10

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    Quote Originally Posted by northernladuk View Post
    FTFY
    We'll see. Let's come back to this in one, two and three years. I can probably be found on the stock market crash thread winding up our local narcissist
    Last edited by Paralytic; 11th November 2020 at 16:04.

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