My client will only renew if within IR35 - Advice?

[ChimpMaster]

Thanks a lot. I'll definitely check and enquire. It's a silly question, but would closing down the company prevent HMRC from coming after me?

No it won't.

Doesn't it ….?

[ciaozio]

Doesn't it ….?

I've read various opinions, but I guess I'll believe with the pessimistic ones.

[mudskipper]

Too late for IR35 insurance. Can't buy insurance to cover you after the event.

You can buy tax investigation insurance. You haven't been investigated, and have no reason to think you will be, so that will be valid.


Ask how they came to their determination. Do you agree with it? What process is there for you to appeal it?

You say the rate remains the same - be absolutely clear about who is covering Employers NI - it should be the feepayer/client.

[eek]

You can buy tax investigation insurance. You haven't been investigated, and have no reason to think you will be, so that will be valid.


Ask how they came to their determination. Do you agree with it? What process is there for you to appeal it?

You say the rate remains the same - be absolutely clear about who is covering Employers NI - it should be the feepayer/client.

It won't be - did IPSE ever find a case to pursue?

[ciaozio]

You can buy tax investigation insurance. You haven't been investigated, and have no reason to think you will be, so that will be valid.


Ask how they came to their determination. Do you agree with it? What process is there for you to appeal it?

You say the rate remains the same - be absolutely clear about who is covering Employers NI - it should be the feepayer/client.

There is simply no process. The client is one of the big banks, who declared they won't engage with PSC anymore. It is therefore either that or contract not renewed. Which in normal times would be fine, except, they're really not. It's the first time in my career that I get nothing in my LinkedIn inbox. My next thought is to close down and leave the country in 2020.

[sal]

You still have 3 months until the end of your current contract - just look for another contract even if it's inside IR35 too.

1) It's not worth the risk of HMRC retrospective investigation
2) Middle finger to ClientCo. On your way out just tell them you have found another role outside IR35 and wish them GL (even if you haven't)

[dsc]

It's disappointing, but the market is dead and I feel cornered: accepting seems the only way to keep getting an income unless I start considering perm roles

This is exactly what HMRC wanted, to have contractors bent over the barrel and forced to take inside / perm roles to pay more tax. So far there was an option to simply walk in such a scenario as there was loads of other outside roles (or should I say "outside" roles). With the April change coming, most clients will be either going PAYE-only or puting roles inside, effectively eliminating the walk alternative.

Have you discussed going through an umbrella company? some say that the risk of doing this would be smaller than simply switching outside -> inside on an ltd, so perhaps that's worth pursuing.

[cojak]

Thanks a lot. I'll definitely check and enquire. It's a silly question, but would closing down the company prevent HMRC from coming after me?

Provided you have an outside IR35 contract with working practices to match, I don’t think that you will be investigated.

Once the company is closed, that’s it.

[mudskipper]

There is simply no process. The client is one of the big banks, who declared they won't engage with PSC anymore. It is therefore either that or contract not renewed. Which in normal times would be fine, except, they're really not. It's the first time in my career that I get nothing in my LinkedIn inbox. My next thought is to close down and leave the country in 2020.

OK - so the client has not said you are inside IR35. That's a plus from a "retrospective" point of view, but also leaves little scope for challenging what is essentially a policy decision.

[Peoplesoft bloke]

.

Once the company is closed, that’s it.

Not according to some articles online

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