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

[zerosum]

Just wanted to confirm my understanding:

Current contract ends at end-Feb 2020. (Started Nov 2018).

They pay weekly and are usually very quick.

So my understanding is that *this* should be fine, right?

The more risky situation is if extensions are added beyond Feb (eminently possible) and unfavourable/inconclusive determinations creep in. At this point it would be less risky to bail.

[Blert596]

I was planning to jack it at the xmas holidays, but have decided to stay until end of February.

I received an extension offer a month or so ago until the end of April but thought I'd go early, but all the contractors have been told that the extensions will only be until end of Feb. I get paid weekly so not a big deal for me.

Found out today that although the client hasn't made a determination (yet) they have stated that all contractors will be PAYE after the end of February. No mention of any discussion on renegotiations of salary, or if there will be a preferred umbrella, or if they'll be expected to use the current agents umbrella solution.

[SDR]

If ER was to be raised or abolished, to be eligible for the 10% rate the remaining company funds would need to be paid to shareholders before April 6th, correct?
So if contractors were planning to work until the end of Feb, then await the invoice being paid the end of March, then there's no chance of going through the MVL process and being able to use the 2019-20 10% ER rate is there? They would have to deal with whatever changes are announced in the Budget in Feb?

[Lance]

If ER was to be raised or abolished, to be eligible for the 10% rate the remaining company funds would need to be paid to shareholders before April 6th, correct?
So if contractors were planning to work until the end of Feb, then await the invoice being paid the end of March, then there's no chance of going through the MVL process and being able to use the 2019-20 10% ER rate is there? They would have to deal with whatever changes are announced in the Budget in Feb?

yup.
Although I'm not so sure that a budget that close the YE would include any massive changes like that.

[jamesbrown]

yup.
Although I'm not so sure that a budget that close the YE would include any massive changes like that.

Right and, in any case, they promised a review first. Scope and outcomes are obviously uncertainty and ER has much broader scope than contractors. Still, they probably do have contractors in mind, among others.

[Spoiler]

The project I'm on is due to wrap-up end Feb 2020 (in line with the contract end date), and final payment made mid-March. All good.

Except, it's hit a few delays and is now being extended out till the end of March.

The client has indicated they are not doing any contract determination until March. As a result, both the PM and I have advised that we're still off the end of Feb. A shame for the project, and personally I wanted to be there to get it finished, but I don't fancy the alternative.

[rootsnall]

I think this is the right thread to ask this after looking at Cojak's original post.

My current contract ends 31/12/19, self declared outside IR35 and working through a Ltd.

I am planning on wrapping up my Ltd with effect from 31/12/19 and then starting to work via an umbrella if/when I get an expected renewal in Jan 2020. I don't want to trigger any sort of IR35 status review for the reasons mentioned in the original post, in other words flipping from Outside to Inside with the same working practices.

I'm wondering how to word any correspondence to the End User telling them I am now using an umbrella to avoid being dragged into IR35 reviews that other contractors may well trigger before April 2020. It normally wouldn't be any of their business ( ie. agency in between ) but the new legislation is I guess dragging them into it. I am thinking if I wait until I have started working via the umbrella I just write something to the effect, 'just to let you know I work via umbrella X so you have no IR35 worries with me'.

Thoughts please !?!

[whd3v]

I'm completely new to contracting and have just accepted a contract for 6 months starting in Jan 2020, my recruiter has told me that my contract is currently outside IR35 for now but is unsure what will happen after April 2020. I'm wondering about the degree to which the information in the original post applies to my situation.

[cojak]

I'm completely new to contracting and have just accepted a contract for 6 months starting in Jan 2020, my recruiter has told me that my contract is currently outside IR35 for now but is unsure what will happen after April 2020. I'm wondering about the degree to which the information in the original post applies to my situation.

It applies 100% to your situation. If you don’t think it’s a risk don’t worry about.

[Kerbi]

IR35: Planning for April 2020 – should I stay or should I go?

Hi all, just read through all comments on this topic and found out I am not alone in doubts what decision to take it...stay or go ( by "go" I mean close Limited down).
My situation is very similar to zerosum has as my contract ends on end Feb either and agency had already proposed me to switch to umbrella from March instead with continuity of work for same client ( big bank) . I just regret to not read this thread earlier ( would take a decision to not extend my current contract from November to Feb), but what had happned it happned.

Now I am not sure whether to close Limited down now in January or stay on until end Feb when contract finish, if I will decide to shut down Limited ( still have more then 60k on company's account) can I take ( lets say ) as much dividends as I can first in January and leave the rest for pay taxes 2019/20 then set MVL up, or set MVL first then take as much as I can (after accountant consultation) ? .
Or maybe close it it via strike off instead MVL in January?
Which option is better from the tax to pay view in case when some one has more then 60k on company account ?

How long closure will takes in my case for MVL in comparision to Strike off ? should I start now or is too late and I will finalise it in April

or for instance take another way and stay with Limited for next tax year but leave client in end Feb when contract ends and be without any contract until find entirely new one after April 2020 ?

I will really appreciate for any advice