Is anyone able to explain the potential tax and legal issues faced if the above happens? Is it basically impossible to prove that you are outside IR35? You can assume that the role would be the same both as permie and contractor and that the contract would be taken as an associate of another company who are already engaged with the customer. Many thanks.
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friday to monday?Originally posted by Gomez View Post -
I should have also added that there is no advert or request for a contractor currently and there might never be one whether redundancy was taken or not.Comment
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Consider whether your redundancy payment (or part of it) should still be tax-free if you are going back in any form.
There is an obvious question as to whether the redundancy was in fact genuine (it is possible it could still be)
Edit: Even with the role being the same there is some limited possibility of being outside IR35. But it is a massive pointer to being caught. Your working arrangements would need to be considerably different. But say for example that you were undertaking it on a fixed price basis that could help. Also an actually exercised right of substitution. But I would get too optimisitc.Last edited by ASB; 10 August 2015, 11:32.Comment
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Isn't the OP's situation exactly the thing IR35 was brought in to police? Friday to Monday perm-contractors?And the lord said unto John; "come forth and receive eternal life." But John came fifth and won a toaster.Comment
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That was what GB said in 1997 in his first budget. But turns out he was referring to every contractor - a couple of hundred thousand.Originally posted by b0redom View Post
I reckon the OP will probably get away with it through law of averages. What percentage of contractors are actually investigated? And of that, how many do HMRC win?Comment
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If the role still exists for you to contract in then it's not redundant. IR35 to one side (I can't see how it wouldn't catch you) you're at risk of the redundancy payment being treated as income not eligible for the tax break.Comment
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The role will not definitely exist as a contract. It *may* become available *if* the subject of this query took a voluntary redundancy option.Originally posted by TykeMerc View PostComment
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this sounds like bread and butter ir35 materialComment
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So, the role may suddenly reappear depending upon what you choose. In my view there is little scope that it is a genuine redundancy.Originally posted by Gomez View Post
The instant you are made redundant there is suddenly a magic need for the role to continue to exist.Comment
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