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

[jamesbrown]

Am I worrying over nothing?

Nope, you're worrying over something. The additional intermediary will be completely ignored from an IR35 POV, hence the "intermediaries legislation". It looks through all of the intermediaries and tries to see whether you, a natural person, look like an employee of the end client.

So if the client provides a negative SDS, yes, that does put you in a tough spot regarding the earlier work and the additional intermediary provides absolutely no level of protection. Again, we're talking about historical risk here because the liability is with the supply chain above you after April 5.

[quantum77]

Thanks for this thread cojak

I've been working for a client for a few years, and had all contracts checked by QDOS and deemed outside IR35. My current contract is due to finish this month and I plan on finishing there. There's never been a SDS, and they're fairly IR35 clueless.

A 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. I'm happy for him to do so, but my worry is it'll recreate the link between the client and me (although via 3rd party) and if they decide to make all new contacts inside IR35 I'll be adding an unnecessary retrospective investigation risk.

Am I worrying over nothing?

[cojak]

Updated to reflect the 1 year delay.

[rnsuk]

If it's an outside to inside transition same client and you're deemed as inside throughout the engagement, assuming the company upon closure is not investigated, then expect to remortgage house and sell assets at a later date as the liability falls onto the director of the company.... HMRC can still open investigations on closed companies after the event. If you have insurance, at least run that a year or two after the LTD is finished.

I have a cunning plan. Make my no assets no job no clue son a director, me leave as a director, close the company. Then they can come for him. He and his mum have taken most of the money I ever earned , he can pay some back

[GhostofTarbera]

"Quote Originally Posted by Andy2 View Post
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."

Hi I read all 33 pages so thank you for a great amount of info

I hope I do not get barked at for asking whether there were any statistics for number of cases investigated? Do we know anything about how many cases have been opened / closed ?

About zero in the last 2 years

Ipse would never disclose number of cases (even to the CC) as fallen off a cliff and need to keep revenue streams coming in with project fear




Sent from my iPhone using Contractor UK Forum

[northernladuk]

"Quote Originally Posted by Andy2 View Post
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."

Hi I read all 33 pages so thank you for a great amount of info

I hope I do not get barked at for asking whether there were any statistics for number of cases investigated? Do we know anything about how many cases have been opened / closed ?

Try a search or read the IR35 reform fora. We've been over this ad infinitum...

[NowPermOutsideUK]

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.

"Quote Originally Posted by Andy2 View Post
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."

Hi I read all 33 pages so thank you for a great amount of info

I hope I do not get barked at for asking whether there were any statistics for number of cases investigated? Do we know anything about how many cases have been opened / closed ?

[rootsnall]

If I take on an IT contract that is inside or outside , use a brolly .

If Rona has taught me anything , it's that we really don't need as much money as we think and it may be time ( 55.5yrs old) to start doing stuff you love.

At 55.5 and with an alternative source of short term income you can use a brolly and pay very little NI. National Min Wage with the rest into a SIPP.

[Paralytic]

If Rona has taught me anything , it's that we really don't need as much money as we think and it may be time ( 55.5yrs old) to start doing stuff you love.

She is such a perceptive woman!

[rnsuk]

Have to admit, this was the most interesting thread on here.

Thanks to all for the information .

My plan is ( determined inside last year)
Leave work in December ( have confirmation that a determination will not take place as long as I do not work beyond 15 December)
Close my company
Try and go to the developing world somewhere and play with motorbikes and visit Buddhist temples

Then only work 6 months of the year , in IT if available or stack shelves at Tescos.

If I take on an IT contract that is inside or outside , use a brolly .

If Rona has taught me anything , it's that we really don't need as much money as we think and it may be time ( 55.5yrs old) to start doing stuff you love.