My client will only renew if within IR35 - Advice?

[ciaozio]

Hi,

My client has advised me that the contract will not be renewed past February unless with a contract within IR35. 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. With that said, I'll keep an eye out for outside roles.

I don't have many details at the moment, which is why I am writing this.

What are the questions I should ask? What I should I look out for? Would you advise me to get IR35 insurance?

Thank you.

PS: the rate will remain the same

[ladymuck]

You need to confirm the rate and, therefore your take home pay, and decide if you can live on it.

Depending on what you've had out of your company this tax year, you may find you get hammered for employees NI and income tax.

[cojak]

And then there’s this to consider... https://www.contractoruk.com/forums/...ould-i-go.html

[eek]

While Cojak won't say it I will.

The other issue to decide is if you continue the same contract inside IR35 will HMRC come calling and suggest that the contract prior to April 2020 was also inside IR35.

And with client saying they feel the contract is inside IR35 what evidence do you have that this statement is accurate? Are they going to change your (statement of) work to ensure there is significant differences between what you do now and what you do in April?

There is a reason why when the changes were implemented in the public sector a lot of people changed contracts (and some agencies changed the child agency that was invoicing)..

[ciaozio]

While Cojak won't say it I will.

The other issue to decide is if you continue the same contract inside IR35 will HMRC come calling and suggest that the contract prior to April 2020 was also inside IR35.

And with client saying they feel the contract is inside IR35 what evidence do you have that this statement is accurate? Are they going to change your (statement of) work to ensure there is significant differences between what you do now and what you do in April?

There is a reason why when the changes were implemented in the public sector a lot of people changed contracts (and some agencies changed the child agency that was invoicing)..

This is something that worries me more than the higher tax bill actually. Those are details I don't know, except it will probably be the same agency to do the invoicing.

This is hard.

[eek]

This is something that worries me more than the higher tax bill actually. Those are details I don't know, except it will probably be the same agency to do the invoicing.

This is hard.

In which case you want your post April contract and working conditions to be suitably different from your current ones. If the client won't do that I would suggest looking harder.

[ciaozio]

In which case you want your post April contract and working conditions to be suitably different from your current ones. If the client won't do that I would suggest looking harder.

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?

[portseven]

walk

[Peoplesoft bloke]

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.

[northernladuk]

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