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

[PurpleGorilla]

Hi - Thanks for all the input and advice on this thread (the original post and subsequent answers)

I’m hoping someone could offer their thoughts on the below situation.

I’ve been working with my current end client for 2 years over several contracts. I’ve been through the CEST tool and had an independent review which both place me outside of IR35 due to not being subject to SDC. I also have IPSE membership in place.

My end client has conducted an SDS on the role I perform and has been deemed it inside of IR35 post April 6th despite the above. I have chosen not to appeal this decision and leave at the end of the contract, which is the end of Feb, in an attempt to minimise any risk of a retrospective investigation.

The end client has now asked me to extend until the end of March however due to them using an intermediary agency, they will only offer a 6 month extension, which would take me through to August, and then have stated I can terminate the contract at the end of March.

Question - If the role has been determined by the end client as Inside IR35, and I have not appealed, do you think taking this extension until the end of March increases any risk?

Thanks in advance.

Yes of course it does.


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[eek]

Hi - Thanks for all the input and advice on this thread (the original post and subsequent answers)

I’m hoping someone could offer their thoughts on the below situation.

I’ve been working with my current end client for 2 years over several contracts. I’ve been through the CEST tool and had an independent review which both place me outside of IR35 due to not being subject to SDC. I also have IPSE membership in place.

My end client has conducted an SDS on the role I perform and has been deemed it inside of IR35 post April 6th despite the above. I have chosen not to appeal this decision and leave at the end of the contract, which is the end of Feb, in an attempt to minimise any risk of a retrospective investigation.

The end client has now asked me to extend until the end of March however due to them using an intermediary agency, they will only offer a 6 month extension, which would take me through to August, and then have stated I can terminate the contract at the end of March.

Question - If the role has been determined by the end client as Inside IR35, and I have not appealed, do you think taking this extension until the end of March increases any risk?

Thanks in advance.

Pass but you are now at the point were HMRC to come calling to have evidence that shows you were inside.

I wouldn't be taking one months money to risk HMRC going after 6 months money (25% of 2 years income)..

[northernladuk]

Hi - Thanks for all the input and advice on this thread (the original post and subsequent answers)

I’m hoping someone could offer their thoughts on the below situation.

I’ve been working with my current end client for 2 years over several contracts. I’ve been through the CEST tool and had an independent review which both place me outside of IR35 due to not being subject to SDC. I also have IPSE membership in place.

My end client has conducted an SDS on the role I perform and has been deemed it inside of IR35 post April 6th despite the above. I have chosen not to appeal this decision and leave at the end of the contract, which is the end of Feb, in an attempt to minimise any risk of a retrospective investigation.

The end client has now asked me to extend until the end of March however due to them using an intermediary agency, they will only offer a 6 month extension, which would take me through to August, and then have stated I can terminate the contract at the end of March.

Question - If the role has been determined by the end client as Inside IR35, and I have not appealed, do you think taking this extension until the end of March increases any risk?

Thanks in advance.

Does this entire thread including the first post mot answer this? Why do you think your situation is any different?

[eek]

Does this entire thread including the first post mot answer this? Why do you think your situation is any different?

The variation is that they would resign from the contract to ensure it didn't go past March 31st.

I don't think that makes any difference as it's no different to all the responses in https://www.contractoruk.com/forums/...side-ir35.html which all said - once you knew you were inside you should have left...

[northernladuk]

Correct

The variation is that they would resign from the contract to ensure it didn't go past March 31st.

I don't think that makes any difference as it's no different to all the responses in https://www.contractoruk.com/forums/...side-ir35.html which all said - once you knew you were inside you should have left...

Correct

[Surrey20]

I'm hoping someone could offer their thoughts on the below scenario.

I left company A (mid size company with maybe 25-30 contractors) in Jul 2019, where I was working directly for the end client so no agency in the supply chain.Currently at company B (large company 1000+ contractors) but will be leaving here on Apr the 3rd as they are most likely going to implement a ban on the vast majority of PSC's they use so I have no interest in staying and going from Outside to Inside IR35 with the same end client. There is a possibility for me to return to company A with a role that will be Inside IR35 post April the 6th via an umbrella.

The role at company A will be similar to what I was doing when I left it 8 months ago. When I worked there previously pretty sure they never had a record of my NI number. Retrospective investigation is a concern but given an 8 month gap and under the previously engagement no agency in the supply chain and no record of my NI with the end client. What are people's thoughts on the risk I may have of an HRMC retrospective investigation in this scenario.

[northernladuk]

Hmm. Haven't we covered gaps? And discussed a whole host of associated information around the engagement method, details of the role and a lot of other stuff you would find very useful.

Try doing some reading and research to try understand what is happening to you and why and let's see if you can apply that thinking to come up with the fairly simple answer to your question....

People really need to start thinking and start to understand what they do rather than just ticking boxes and getting someone else to tell them.

[Andy2]

how many tax investigation were done by hmrc when these ir35 rules were enforced in the public sector ?
That should give an idea about how much risk are we talking about.

[eek]

how many tax investigation were done by hmrc when these ir35 rules were enforced in the public sector ?
That should give an idea about how much risk are we talking about.

HMRC's favourite time to send letters is the last Easter and the May bank holidays before they run out of time to do so.

That is actually this April and May - so after these rules kick in..

So I would be very happy to answer the question - sometime in June 2020.

[Paralytic]

how many tax investigation were done by hmrc when these ir35 rules were enforced in the public sector ?
That should give an idea about how much risk are we talking about.

One agency told me that the count of investigations into people as a result of going from outside to inside/umbrella/paye at the same client was none. Not a few, nor a handful, not "not many", but absolutely zero, zilch, nada.

Of course, considerations to take into account:

- It was an agency saying this, so a heap of salt needs to be consumed
- HMRC's past performance is not an indicator of future action etc etc