Should I operate as outside IR35 even though contract is inside IR35? This is for short term contract (approx. 8 months) and then going back to perm.
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inevitable question
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Originally posted by la7ush View PostShould I operate as outside IR35 even though contract is inside IR35? This is for short term contract (approx. 8 months) and then going back to perm.⭐️ Gold Star Contractor -
I wouldn't recommend that action if caught by ir35.
You are running the risk of being investigated by HMRC and then potentially having a large amount of tax and ni to pay along with penalties and interest were you to be found out.Comment
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Originally posted by PerfectStorm View PostIf any element of the contract places you outside out of the big 3 factors you could give it a go... with insurance!
What insurance do you have in mind?
Sorry I am a total ltd noob.Comment
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Originally posted by Kenny@MyAccountantFriend View PostI wouldn't recommend that action if caught by ir35.
You are running the risk of being investigated by HMRC and then potentially having a large amount of tax and ni to pay along with penalties and interest were you to be found out.Comment
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Originally posted by la7ush View PostShould I operate as outside IR35 even though contract is inside IR35?
Also, why is this an inevitable question? It's a pretty stupid question IMHO...Comment
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Originally posted by la7ush View PostI get you point. Part of me wants to take the risk and give it a go and the other one wants to play it safe and use brolly.
If you think you might want it to go on for a lot longer, consider a limited company.Comment
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Originally posted by jamesbrown View PostIn the terms you've described, it's evasion. If you're caught, you'll regret it, because you'll be on the hook for a lot more than the tax due. By all means, seek professional advice on whether your working practices can be positioned outside but, if you've done that already, bend over and wait...
Also, why is this an inevitable question? It's a pretty stupid question IMHO...Comment
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How you proceed depends entirely on why you think the contract is inside. If it is because a professional review (or you are an experienced enough contractor to know) says so, then you would be a fool to risk it.
If you think it is inside because your agent/accountant/wife/hamster said it was, then you probably should have the contract reviewed professionally, then make your decision. It doesn't cost a great deal and you will have the security of professional advice.Comment
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Originally posted by PerfectStorm View PostIf any element of the contract places you outside out of the big 3 factors you could give it a go... with insurance!
- Is there a requirement for the worker's personal service?
- Is there a sufficient degree of control over the worker?
- Are the mutual obligations of the contract consistent with employment?
Why are these three areas so important? Because if the answer to any of these questions is 'no', the contract cannot be an employment, whatever other terms it may contain.Comment
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