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

[BlueSharp]

In their 'factsheet' the HMRC said that:

The reform is not retrospective. As was the case in the public sector, HMRC will focus on ensuring businesses comply with the reform for new engagements, rather than focusing on historic cases. HMRC will not carry out targeted campaigns into previous years when individuals start paying employment taxes under IR35 for the first time. Organisations’ decisions about whether workers are within the rules will not automatically trigger an enquiry into earlier years.

Doesn't this suggest that there isn't going to be an issue with sticking around until your client determination date? Or were your reading between the lines as they use phrases like "no targeted campaigns" and "not automatically trigger", which isnt the same as stating that it won't happen?

I would not trust them!

This is what they said about the Loan charge impact:

Impact on individuals, households and families
This package is not expected to have a material impact on family formation, stability or breakdown.

The disguised remuneration package is expected to affect up to 40,000 individuals who have entered into disguised remuneration avoidance schemes. This measure will also affect individuals who are self-employed and trading on their own account or through a partnership and have entered into disguised remuneration avoidance schemes. The measure is expected to affect up to 10,000 self-employed individuals who have entered into disguised remuneration avoidance schemes.

Some of these individuals will be unable to repay the loans, agree a settlement with HMRC before 5 April 2019, or pay the loan charge arising on 5 April 2019. The government anticipates that some of these individuals will become insolvent as a result.

Disguised remuneration: further update - GOV.UK

[sojan]

[*] or 24th February 2020 (monthly payment), if your client hasn't said anything to you about assessments

hi mate, what is the reason for 24th February and NOT March? . Will the IR35 rules apply only from 4th of April?

[cojak]

hi mate, what is the reason for 24th February and NOT March? . Will the IR35 rules apply only from 4th of April?

If you're paid monthly the 24th is one month before final invoice payment which needs to fall before the 6th April. IR35 rules apply now, who decides on those rules changes from the 6th April.

Read the post again.

[sojan]

If you're paid monthly the 24th is one month before final invoice payment which needs to fall before the 6th April. IR35 rules apply now, who decides on those rules changes from the 6th April.

Read the post again.

But the payment was for an invoice of March if I'm correct. i.e the work done for March (before the IR35 decision was made) .
So does it matter if the payment was done afte r6th April?

[northernladuk]

But the payment was for an invoice of March if I'm correct. i.e the work done for March (before the IR35 decision was made) .
So does it matter if the payment was done afte r6th April?

Yes it does. Its very clear. Its when you get paid. If you get paid after the deadline then you are stuffed.

As. Cojak says. If you read the post again she's highlighted this point in bold!

Depends on your payment schedule. If you are on 30 days you invoice end if March, paid end of April. You are too late.

If you are on weekly you can work a bit longer.

You've got to work out your own payment terms to know when you can invoice last to get paid before the cut off.

Be aware of delays though.

[seminal75]

Yes it does. Its very clear. Its when you get paid. If you get paid after the deadline then you are stuffed.

As. Cojak says. If you read the post again she's highlighted this point in bold!

Depends on your payment schedule. If you are on 30 days you invoice end if March, paid end of April. You are too late.

If you are on weekly you can work a bit longer.

You've got to work out your own payment terms to know when you can invoice last to get paid before the cut off.

Be aware of delays though.

Hi Newbie here.

Some of us have a weekly payment schedule with an agency, yet the agency invoices the client monthly. For example in my case my contract ends on the 23rd March 2019. I can happily invoice my agency ahead of April 5th and receive payment. However, my agency adds their fee and any other contractors they have there and invoices monthly the managed services company (Manpower) that my end client uses to deal with all off payroll staff. The MSC then invoices the end client en masse on behalf of all agency/contractors. I would have no control or even knowledge of the timing of that final invoice, or even the agency invoice. So I guess my question is which payment is key? Is it when I get paid before April, or is it when the end client makes its payment (probably into May)? If it is the latter then I would need to give notice in, at latest, February and hope for the best as it's out of my control.

[cojak]

Hi Newbie here.

Some of us have a weekly payment schedule with an agency, yet the agency invoices the client monthly. For example in my case my contract ends on the 23rd March 2019. I can happily invoice my agency ahead of April 5th and receive payment. However, my agency adds their fee and any other contractors they have there and invoices monthly the managed services company (Manpower) that my end client uses to deal with all off payroll staff. The MSC then invoices the end client en masse on behalf of all agency/contractors. I would have no control or even knowledge of the timing of that final invoice, or even the agency invoice. So I guess my question is which payment is key? Is it when I get paid before April, or is it when the end client makes its payment (probably into May)? If it is the latter then I would need to give notice in, at latest, February and hope for the best as it's out of my control.

The first question I have is very simple - are you inside IR35 or outside IR35 today? (Do you get paid via PAYE?)

If you are inside you do not need to worry, you are already covered by this.

[seminal75]

The first question I have is very simple - are you inside IR35 or outside IR35 today? (Do you get paid via PAYE?)

If you are inside you do not need to worry, you are already covered by this.

Outside

[cojak]

Outside

Then in your situation I would look at the notice clause in your contract. It may be a 1 month notice period, in which case you know when to hand in your notice should you choose to do so.

(It's payment to you, btw - I didn't think that MSC's were allowed...)

[CompoundOverload]

Outside

Have you had a determination confirmed in writing from your client you are outside post April ?