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

[handyandy]

How will they know to put me inside?

At the moment I'm just paid on an invoice basis the same as any other supplier...

Sorry that I'm not abreast of the latest for this legislation but I thought there was a certain size (not sure if it is turnover or number of staff) where a company was not required to change to the new rules for determining status (ie it was up to the end contractor). If this non-profit are a small player do they fall outside of having to do this?

[cojak]

Sorry that I'm not abreast of the latest for this legislation but I thought there was a certain size (not sure if it is turnover or number of staff) where a company was not required to change to the new rules for determining status (ie it was up to the end contractor). If this non-profit are a small player do they fall outside of having to do this?

Bluebird said that they did not fall into the small companies category.

[northernladuk]

Sorry that I'm not abreast of the latest for this legislation but I thought there was a certain size (not sure if it is turnover or number of staff) where a company was not required to change to the new rules for determining status (ie it was up to the end contractor). If this non-profit are a small player do they fall outside of having to do this?

It would be a good idea to be a bit more abreast. It hits in 6 months time and it's going to bad. Time to sit up and take a bit of notice.

[yorkshirespud]

Quick question about a situation I’ve not seen in the replies yet to cement my understanding:

In a contract, and have self-determined outside IR35 (pre April)

Post April, and if no word on any determination at all one way or another from the client (and no reminders to the client from the agency etc), then golden?

In the above case, if 6 months down the line e.g September, the end client suddenly wants to declare inside, it would be the client responsible for all post-April taxes anyway?


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[northernladuk]

Client should make a determination. If they don't, make them. Its like working without a contract. Don't do it. Trying to game the system and work without one isn't worth it.

[cojak]

Quick question about a situation I’ve not seen in the replies yet to cement my understanding:

In a contract, and have self-determined outside IR35 (pre April)

Post April, and if no word on any determination at all one way or another from the client (and no reminders to the client from the agency etc), then golden?

In the above case, if 6 months down the line e.g September, the end client suddenly wants to declare inside, it would be the client responsible for all post-April taxes anyway?


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I’ll be surprised if the agent and client don’t go after you for the PAYE if/when HMRC go after them.

Or HMRC will simply go after you for PAYE for the whole contract.

[yorkshirespud]

Covering all the bases

What you must do as a [end-]client 

Who to tell about your determination
From 6 April 2020, you must provide the worker and the agency, or other organisation you contract with, your determination. Do this whether your determination shows that the off-payroll working rules will apply or not.

You must provide reasons for your determination.

You will hold the liability for tax and National Insurance contributions until you tell the worker, and the person you contract with, of your determination and the reasons for it.

So - if the client and agency do bury their heads in the sand and do nothing, the end client holds all liability.

Sounds like a hopeless client is a win!


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[cojak]

Covering all the bases

What you must do as a [end-]client 

Who to tell about your determination
From 6 April 2020, you must provide the worker and the agency, or other organisation you contract with, your determination. Do this whether your determination shows that the off-payroll working rules will apply or not.

You must provide reasons for your determination.

You will hold the liability for tax and National Insurance contributions until you tell the worker, and the person you contract with, of your determination and the reasons for it.

So - if the client and agency do bury their heads in the sand and do nothing, the end client holds all liability.

Sounds like a hopeless client is a win!


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Well, you've done your best. I would be concerned, but at least you have until the 24th Feb (ish, depending on your invoice/payment date) to decide what to do next.

[adubya]

Well, you've done your best. I would be concerned, but at least you have until the 24th Feb (ish, depending on your invoice/payment date) to decide what to do next.

Or if you have a months notice period then end of Jan.

[DSF70]

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.

I’m on monthly invoices, but my agent has said he’s gonna pay everyone by end of March, so that we are paid before the deadline.