IR35: Planning for April 2021 – should I stay or should I go?

[sim2kuk]

Yep, that’s the long and short of it.

I'm waiting for them to come back to me on when the determination will take place, and the process. However, it's the type of business that would say one thing and then do another.

Is there anything I can do to mitigate the risk - can I get them to confirm in writing that the role will never be judged (pre or post April) as inside IR35, and that if they are going to class it as inside they need to create a new role for it, removing the current role?

[cojak]

I'm waiting for them to come back to me on when the determination will take place, and the process. However, it's the type of business that would say one thing and then do another.

Is there anything I can do to mitigate the risk - can I get them to confirm in writing that the role will never be judged (pre or post April) as inside IR35, and that if they are going to class it as inside they need to create a new role for it, removing the current role?

Give it a go and let us know how it goes - we have no idea one way or another if it will work.

[sim2kuk]

Give it a go and let us know how it goes - we have no idea one way or another if it will work.

I will do. I'm having the contract re-reviewed at the moment as well as previously QDOS have said a contract is IR35 compliant one year, and then not the next, so will wait for that. If that comes back as negative I think I'll just leave it full stop (I re-read and there was a clause in there that I wasn't keen on from an IR35 POV) as the retrospective risk will likely be too high (although I will be in a job rather than potentially unemployed so it's all swings & roundabouts).

Is there anyway of knowing an approximate tax risk amount for your business, other than just doing listen to taxman, and then removing income and corp tax? I only want an approximate value.

[dx4100]

I will do. I'm having the contract re-reviewed at the moment as well as previously QDOS have said a contract is IR35 compliant one year, and then not the next, so will wait for that. If that comes back as negative I think I'll just leave it full stop (I re-read and there was a clause in there that I wasn't keen on from an IR35 POV) as the retrospective risk will likely be too high (although I will be in a job rather than potentially unemployed so it's all swings & roundabouts).

Is there anyway of knowing an approximate tax risk amount for your business, other than just doing listen to taxman, and then removing income and corp tax? I only want an approximate value.

There is a school of thought that unless you have wilfully avoided declaring yourself correctly inside then they will only go after what’s in your business bank account.

If you haven’t done reviews etc then they will probably becoming after anything they can get their hands on... Not sure its possible to work out how bad that might look... Just presume your losing your house and everything you have and it probably wont be far off...

[sim2kuk]

There is a school of thought that unless you have wilfully avoided declaring yourself correctly inside then they will only go after what’s in your business bank account.

If you haven’t done reviews etc then they will probably becoming after anything they can get their hands on... Not sure its possible to work out how bad that might look... Just presume your losing your house and everything you have and it probably wont be far off...

I doubt my tax liability would be that high anyway - it's 17 months.

As said, my contract and working practices ticks pretty much every Outside IR35 box, it's just if the company can't be arsed to define the roles properly then it makes everything a lot harder.

[Paralytic]

Lots of banks.... Have you been in a deep dark hole last couple of weeks

Links?

(I suspect you're confusing those banks policy decisions, to no longer engage with PSCs and therefore remove any need to determine status, with an Inside IR35 determination)

So, stick yer

[dx4100]

Links?

(I suspect you're confusing those banks policy decisions, to no longer engage with PSCs and therefore remove any need to determine status, with an Inside IR35 determination)

So, stick yer

Oh you are one of THOSE posters

Yeah, we can all play the pedantic game, you played it well

[Paralytic]

Oh you are one of THOSE posters

Yeah, we can all play the pedantic game, you played it well

You're right i am a pedant, but there was a serious point behind this. The risk between staying with a client till, say, Feb 2020 where the client have said they will not make a determination, and one who has made an inside determination or may make an inside determination before that date, is quite distinct.

[zerosum]

What about the tactic of getting a working practices questionnaire (I'm thinking of Qdos' one) freshly signed by the end-client close to Dec 2019?

This seems like a reasonable litmus test for the actual determinations they may make.

Although I suppose there's the possibility that one manager signs, and then a macro-company decision that they're declaring everyone inside blows everything up...

[northernladuk]

There is exactly that which is why CoAs aren't mentioned very much and are very difficult to get from the right person.