Ir35 2020

[NCOTBAC]

But as pointed out before, your accountant does your accounts. You aren't going to ask your contract reviewer to do your SA are you?

You accountant review might be fine. But for 90 quid it's just not worth it. Good practice to get it done by an independent specialist . Job sorted.

[NCOTBAC]

If you go to the front page of the app, hit the three lines at the top left and then settings, you can remove the signature it's putting at the end of your posts as well.

[cojak]

Cheers for the response.

The agent has told me all their contracts have been professionally reviewed externally and are deemed IR35 exempt. Who reviewed them I couldn't tell you, the end client is a large corporation and I have contracted for them before in a different part of the UK which is also a heavily contractor dense city so I trust that as I hear it.

However now with these changes I will be following it this up and find out who the professional reviewer is.

Sent from my CLT-L09 using Contractor UK Forum mobile app

The ONLY review you should trust is one that you’ve paid for yourself (using a specialist). You are not the beneficiary of any review paid for by the agent, they are.

[Hobosapien]

Interesting reading this thread. So I have just started a contract working in on a project which will start and finish in the next 12 months. ...

So what's the end client going to do? Give an ultimatum... Go staff or go umbrella....

For now the liability for getting an inside IR35 determination wrong lies with you/your Ltd. If the contract is likely to go beyond next April then that may change where the client then calls the shots.

It's not clear (as far as I know) how the upcoming legislation change will affect 'in flight' contracts in that clients at renewal may want to change tack so all contracts are moved inside IR35, depending on who guides them and how risk averse and clued up to IR35 in private sector they are now and become next year.

So as others have said, use a reputable third party to get your own contract review with actual working practices detailed once known, then use that to decide how to approach the contract from day one and also when next April looms.

By having a recognised third party review deem the contract is outside IR35 may ward off the client trying to band you inside IR35 at renewal if that is the approach they decide to implement. The goal is to avoid the potential risk of operating outside now but being classed inside later (wrongly or not) by the client and any retrospective impact that has on tax risk from HMRC, if they decide to go after contracts that change in status to recoup the tax they will feel they are owed 'in the spirit of the legislation'.

The more you can mitigate the risk now the easier you can rest next year regardless of what upcoming changes HMRC decide to implement.

[cojak]

It's not known at the moment, but we are beginning to get an idea...

Not sure if you're going from the strict definition of retrospective but 6 public sector workers have been given tax bills for previous tax years after moving to an umbrella solution with the same end client / role post April 2017.

Their limited contract was terminated and a new one generated under PAYE following an inside decision from the public sector client. HMRC didn't open investigations, they just sent them a bill saying 'we believe you've been taxed incorrectly and should have been a deemed employee'.

I was told this a couple of weeks ago by the compliance director at the agency that supplies them so I trust that it's fairly accurate. Discussion from others in the same field and the consensus was that HMRC are keen to demonstrate the effectiveness of this change in raising tax revenues.

A tax accountancy advisor said closing the limited company will deter enforcement but not prevent it and so the advice from them (and us to our contractors) is not to switch from outside IR35 to inside IR35 or PAYE. If you're going to accept an inside IR35 engagement it's worth moving to an entirely new one.

Haven't read the entire thread so apologies if I've duplicated.

Quelle surprise.

Not.

https://www.contractoruk.com/forums/...ur-notice.html

I guess that we are going to need the same count down for the 24th February 2020 ( or should that be the 31st December this year...?)

I'll be posting a sticky around October time to give people a heads-up regarding what may be coming down the line in this area.

[jamesbrown]

It's not known at the moment, but we are beginning to get an idea...
I'll be posting a sticky around October time to give people a heads-up regarding what may be coming down the line in this area.

Good call. The real deadline (i.e., the decision point for a contractor) will be months in advance of the actual deadline, as it was for the PS rollout. There will be many who think they can push this up to March or April next year.

[webberg]

We are presently advising all clients who have a contract that spans 5th April 2020 that at least the period beyond that date WILL be subject to new rules.

We expect to see the Finance Bill in draft on 11th July and it is to be hoped that this will have more information on that transition.

[jamesbrown]

We are presently advising all clients who have a contract that spans 5th April 2020 that at least the period beyond that date WILL be subject to new rules.

We expect to see the Finance Bill in draft on 11th July and it is to be hoped that this will have more information on that transition.

I think you may need to reconsider that advice (even noting "at least"). From the PS rollout:

Subject to Parliamentary approval and Royal Assent the measure will introduce Off-payroll working in the public sector legislation applying to payments made on or after 6 April 2017. The measure applies to contracts entered into before that date. If work is completed before 6 April 2017 but payment made on or after 6 April 2017 it will be within the new legislation.

[NCOTBAC]

I think you may need to reconsider that advice (even noting "at least"). From the PS rollout:

Yep. Cojak particularly, and others made plenty of noise about the deadlines and contract end dates quite a few times in the months leading up to this. Cojak made a comment about updating the FAQs early because we are going to have to keep rolling the same message out this time as well.

[jamesbrown]

Yep. Cojak particularly, and others made plenty of noise about the deadlines and contract end dates quite a few times in the months leading up to this. Cojak made a comment about updating the FAQs early because we are going to have to keep rolling the same message out this time as well.

Yup. For anyone with a longer than average payment cycle, the deadline will be some time in the early NY, perhaps even late this CY to be safe. I don't expect this to differ for the private sector rollout but, like webberg says, we'll have a better sense on 11 July. For the PS rollout, there were very few changes to the initial draft of ch 10, IIRC.