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

[eek]

This would assume that the contractor would be under the same working practices. However moving from a contract which allows subcontracting to one that doesn't is a substantial change in working practices.

Only if the subcontracting clause was originally valid and not a fig leaf which wasn't supposed to be actually used

[jamesbrown]

This would assume that the contractor would be under the same working practices. However moving from a contract which allows subcontracting to one that doesn't is a substantial change in working practices.

Who said it allowed subcontracting? Quantum77 did not say that. Quantum77 said they would be subcontracting work from their mate. My emphasis.

contractor friend of mine is looking for work and asked if he could take the contract with them post April, and sub some of the work to me.

Why are you struggling with this basic idea that clauses about subcontracting, assignment and substitution don't necessarily flow down?

Regardless, it's the relationship with the end client that matters, not some contractual words or the number of intermediaries.

[BlasterBates]

Only if the subcontracting clause was originally valid and not a fig leaf which wasn't supposed to be actually used

Thats true but the contractor in question is asking whether he should subcontract for his colleague, so in this case the clause would indeed be valid. In fact a clause isn't necessary because subcontracting would be an undeniable fact. He's simply worried if his colleague gets caught for IR35 HMRC would then go after the subcontractor, but my argument is the very fact that there is a subcontractor would be such a strong pointer outside IR35 an investigation would go no further.

[BlasterBates]

Why are you struggling with this basic idea that clauses about subcontracting, assignment and substitution don't necessarily flow down?

Regardless, it's the relationship with the end client that matters, not some contractual words or the number of intermediaries.

I didn't say that they did.

[quantum77]

BlasterBates and jamesbrown - thanks for the detailed debate. There's lot of info in there for me to digest.

I think at this point in time I'm going to finish with the client, and ask my contractor friend if he wishes to assist them alone.

[IR35 Lol]

My observation are:

• Few contracts inside IR35
• Recruiters are kicking their heels with not doing a lot of business
• Recruiters are not putting rates/salary's on adds
• Companies HR departments recruiting again (Employing Direct)
• Price offered for roles are pretty low
• One off relocation fees offered, usually 5k
• Jobs come with conditions, i.e. 9 to 5, five days a week, and no remote work.

I closed my ltd company and now looking for something local, prepared at 43 to take low wage to get into something new.

Does anyone know if there is an official method of submitting feedback to the gov?

[cojak]

My observation are:

• Few contracts inside IR35
• Recruiters are kicking their heels with not doing a lot of business
• Recruiters are not putting rates/salary's on adds
• Companies HR departments recruiting again (Employing Direct)
• Price offered for roles are pretty low
• One off relocation fees offered, usually 5k
• Jobs come with conditions, i.e. 9 to 5, five days a week, and no remote work.

I closed my ltd company and now looking for something local, prepared at 43 to take low wage to get into something new.

Does anyone know if there is an official method of submitting feedback to the gov?

What kind of feedback to what part of government?

[IR35 Lol]

I would like to feedback what I have experienced as listed in my post.

I'm guessing it would be the treasury

[eek]

What is your skillset?

There are plenty of outside contracts for people with mine but that opens up a different issue.

I don't particular trust any contract that is using a substitution clause as its chief method of making the contract outside - HMRC are going to be sniffing all over that topic for the next 2 years.

[jamesbrown]

I would like to feedback what I have experienced as listed in my post.

I'm guessing it would be the treasury

You could talk to your MP, who may write to a Treasury Minister but, realistically, you will get a meaningless reply (in other words, don’t bother). The HoL were collecting evidence recently, but even those formal/internal reviews are a waste of space. HMG’s view of success is purely related to the tax take and the cost of enforcement and not the wider cost to the supply chain about which they do not give two flying fooks, regardless of whether the criticism is coming from the private or public sectors, individual constituents, HoC or HoL committees or Uncle Bob.