Outside IR35 to Inside IR35 - Same Client

[Crossroads]

Ladies and Gents,

Your opinion/thoughts/advice and abuse is sought regarding a position I find myself in... I've been working with a private sector client for around 2.5 years, firmly in a project-based role and outside IR35. All well and good and the project is likely to end this month.

The client has suggested that they are looking to secure some funding and if successful would like to use it fund me in a different role, specifically to "backfill" a permie resource. In terms of working practices and so on I could probably position the role outside of IR35 despite it's BAU nature - the work could likely be turned into defined deliverables without D&C etc but it might be too much effort.

Assuming same client, same agency and so on, if I were to view this assignment as inside IR35 and treated it as such, would it set an alarm bell ringing at HMRC with regard to the current project?

[northernladuk]

I can't see why it would. You are doing everything by the book so would be surprised if using the system as it should be used would raise any flags. I'd say those with a couple of years int he same gig with no changes are more at risk what with part and parcel and all that.

Personally I'd leave and go get another outside gig. Hanging on to a clients coat tails and taking any scrappy gigs they want to throw isn't my thing. Did that once. Never again.

Remember you are only as good as your last gig.

[Cirrus]

would it set an alarm bell ringing at HMRC with regard to the current project?

The Revenue have no knowledge of what you are doing or for whom so they can't see the pattern of in one minute; out, the next at the same client.

[Crossroads]

Personally I'd leave and go get another outside gig. Hanging on to a clients coat tails and taking any scrappy gigs they want to throw isn't my thing. Did that once. Never again.

Remember you are only as good as your last gig.

That would normally be my approach, however some of the tech I could get my hands on in this role is quite interesting. The rest of the year off is equally appealing though!

[BlasterBates]

Ladies and Gents,

Your opinion/thoughts/advice and abuse is sought regarding a position I find myself in... I've been working with a private sector client for around 2.5 years, firmly in a project-based role and outside IR35. All well and good and the project is likely to end this month.

The client has suggested that they are looking to secure some funding and if successful would like to use it fund me in a different role, specifically to "backfill" a permie resource. In terms of working practices and so on I could probably position the role outside of IR35 despite it's BAU nature - the work could likely be turned into defined deliverables without D&C etc but it might be too much effort.

Assuming same client, same agency and so on, if I were to view this assignment as inside IR35 and treated it as such, would it set an alarm bell ringing at HMRC with regard to the current project?

If your contract is clearly outside IR35 and moves inside I don't see a problem with that. I would expect that a reduction in NI payments would be more of a red flag than an increase. In the public sector there is a danger of contractors being pushed inside IR35 without a change in working practices, now that is problematic, but your case is quite different.

If you're worried I would take advice from an IR35 expert.

[Hobosapien]

The Revenue have no knowledge of what you are doing or for whom so they can't see the pattern of in one minute; out, the next at the same client.

I've heard mention of agencies having to report to HMRC on a regular basis (may be monthly) and if one report shows a difference to the next (due to moving from outside to inside IR35 if agency report content affected by that) then it could be something HMRC pick up on for investigation.

But as long as outside IR35 contract is evidenced with proper review and clear changes can be shown between that and the new inside IR35 contract then less to worry about, but may still have hassle/stress of an investigation if they use the reports as a basis for identifying likely 'suspects'.