IR35 Insurance and Working through Umbrella

[londonlad]

Hi All.

Just wondering if someone can shed some light on below arrangement.

I am currently working in PS outside IR35 and I have tax insurance cover.

Now my current gig is asking me to work through umbrella. (I understand the risk of retro grab)

So I was thinking how about I keep renewing my IR35 cover and keep my company open to protect against Retro grab

And work through umbrella company with new contract but same organisation and same agency going forward.

Opinions, views and advise welcome..

Thanks

[stek]

Simples, walk away....

[northernladuk]

Hi All.

Just wondering if someone can shed some light on below arrangement.

I am currently working in PS outside IR35 and I have tax insurance cover.

Now my current gig is asking me to work through umbrella. (I understand the risk of retro grab)

So I was thinking how about I keep renewing my IR35 cover and keep my company open to protect against Retro grab

And work through umbrella company with new contract but same organisation and same agency going forward.

Opinions, views and advise welcome..

Thanks

My opinion is you are exactly who HMRC were after and their entire strategy's success depends on people like you staying.

Poke them in the eye and leave.

None of that will protect you from a retro grab. Might, and it's a might at this moment, cover you for the costs of it. Still not a nice place to be.

[eek]

Simples, walk away....

+1 walk away. How do you seriously expect to claim that your contract practices were outside IR35 prior to April if:-

1) during a review now the end client has decided you are inside
2) you continued to work under them following that decision

[londonlad]

My opinion is you are exactly who HMRC were after and their entire strategy's success depends on people like you staying.

Poke them in the eye and leave.

None of that will protect you from a retro grab. Might, and it's a might at this moment, cover you for the costs of it. Still not a nice place to be.

In case HMRC investigate IR35 insurance cover protects you isn't it?

Also IR35 is based on contract by contract basis right?

The idea is to end the current contract, take a break for a month and then start with new contract.

[stek]

In case HMRC investigate IR35 insurance cover protects you isn't it?

Also IR35 is based on contract by contract basis right?

The idea is to end the current contract, take a break for a month and then start with new contract.

...doing the same work.

[londonlad]

+1 walk away. How do you seriously expect to claim that your contract practices were outside IR35 prior to April if:-

1) during a review now the end client has decided you are inside
2) you continued to work under them following that decision

They are not using the tool but just want all psc to work under umbrella, blanket ban.

[eek]

In case HMRC investigate IR35 insurance cover protects you isn't it?

Also IR35 is based on contract by contract basis right?

The idea is to end the current contract, take a break for a month and then start with new contract.

With the same agency? that to HMRC will look like continuation based on the data they have easy access to...

[northernladuk]

In case HMRC investigate IR35 insurance cover protects you isn't it?

We don't know. Someone said their provider will honour the obligations of contracts deemed outside previously and inside afterwards but I certainly don't want to be stood in court when a client says you are inside because there is no way they ever intended to let you Substitute. If the first one loses I have a feeling the insurance providers are going to have to re-think their strategy.

Also IR35 is based on contract by contract basis right?

The idea is to end the current contract, take a break for a month and then start with new contract.

It is but they will still look through previous engagements at the same client. If one is inside then lets go back and look at the rest. A months break won't prove anything I don't think. New contract at a new client maybe... but trying to evade the spotlight by taking a month off? I don't think HMRC are that stupid.

If you do the right thing and leave none of this will be a problem. Your gig has to come to an end sometime, you are a contractor. If you don't intend it to then you are a permie and should be taxed as such.

[londonlad]

We don't know. Someone said their provider will honour the obligations of contracts deemed outside previously and inside afterwards but I certainly don't want to be stood in court when a client says you are inside because there is no way they ever intended to let you Substitute. If the first one loses I have a feeling the insurance providers are going to have to re-think their strategy.



It is but they will still look through previous engagements at the same client. If one is inside then lets go back and look at the rest. A months break won't prove anything I don't think. New contract at a new client maybe... but trying to evade the spotlight by taking a month off? I don't think HMRC are that stupid.

If you do the right thing and leave none of this will be a problem. Your gig has to come to an end sometime, you are a contractor. If you don't intend it to then you are a permie and should be taxed as such.

The notice of termination the existing contract has already gone out. All payment will be settled before 6th April.

As summer is upon us, it wouldn't hurt bench time in a park....