The minefield of it all!! The minefield of it all!!
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  1. #1

    Nervous Newbie


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    Default The minefield of it all!!

    Hi all

    New on here, and found i had to talk about it before i go mad.....
    I have been contracting to a public sector for two years, and now they tell me i need to go umbrella as they have wound themselves up over ir35. This, despite the fact that;

    I am a Ltd. Company, VAT registered and invoice monthly against a PO set against a project.
    I am a member of CHAS.
    I supply goods as well as my services and employ contractors under the CIS construction scheme.
    In my duties i accept the role of principal contractor for construction projects.
    Up until recently had a compound external of the main building as Principal contractor under my liability insurance.
    Run projects as i instruct regarding access, H+S etc.

    I don't think i fall inside ir35, however the client thinks differently and wants me to go via an umbrella company. How can i price all of the above and put it into a number for said umbrella to charge the client??

    My head is in bits as i don't think i can continue with them. Or i stop trading as above after 20 years....?

  2. #2

    My post count is Majestic

    northernladuk's Avatar
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    Add 30% to cover the loss or find another gig.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  3. #3

    I Am Legend


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    HMRC treating people like dirt for years. Yet it is only when HMRC come for them that they get interested.

    <sigh>
    Fight HMRC now! Help sue HMRC individual officers/government ministers for malfeasance in office. Visit https://www.loanchargejustice.com/ and scroll to the bottom of the page to donate.

  4. #4

    bored now

    eek's Avatar
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    Quote Originally Posted by brummie011 View Post
    Hi all

    New on here, and found i had to talk about it before i go mad.....
    I have been contracting to a public sector for two years, and now they tell me i need to go umbrella as they have wound themselves up over ir35. This, despite the fact that;

    I am a Ltd. Company, VAT registered and invoice monthly against a PO set against a project.
    I am a member of CHAS.
    I supply goods as well as my services and employ contractors under the CIS construction scheme.
    In my duties i accept the role of principal contractor for construction projects.
    Up until recently had a compound external of the main building as Principal contractor under my liability insurance.
    Run projects as i instruct regarding access, H+S etc.

    I don't think i fall inside ir35, however the client thinks differently and wants me to go via an umbrella company. How can i price all of the above and put it into a number for said umbrella to charge the client??

    My head is in bits as i don't think i can continue with them. Or i stop trading as above after 20 years....?
    You can't continue with them. I would suggest a meeting explaining the situation (including the fact you already use CIS which is the construction industries version of IR35) and say that because of their change in conditions you will be stopping the project.
    merely at clientco for the entertainment

  5. #5

    Nervous Newbie


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    Thanks guys, your comments confirm it's not me going mad.

    So went straight to the COO today and told him that if this continues and they don't accept i am out of 35, i'm pulling the plug at the end of the month. He has assured me it will be sorted and i will continue providing my services under the scope provided.

    I suggested his HR and finance departments seek further training and guidance on the subject. He agreed.

    All positive for the moment.....

    I would click a thanks button to you all but can't see it on my posts page?

  6. #6

    Godlike

    ChimpMaster's Avatar
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    Sounds very clear that you're outside IR35.

    And you're right about HR and Legal teams needing to be educated. This isn't entirely their fault though - it's more the fault of HMRC and the way in which HMT are implementing the IR35 changes. I've been having to educate my client, who weren't even aware of the changes until I presented it to them!

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