Contracting outside IR35 to same client via Independent Service Provider

[northernladuk]

How would HRMC identify the relationship between my ltd and the end client ? The paper trail is between the client and the ISP only. There would have no reference to me or my ltd. All my contracts are reviewed by Bauer and Cottrell and deemed to be outside IR35 and I have legal insurance in place to cover any HRMC investigations.

I do not pretend there is no risk, just trying to quantify whether the risk can be managed to a sufficient level.

You really want to put 5 years retro tax on the line in the hope HMRC won't find you??

[jamesbrown]

How would HRMC identify the relationship between my ltd and the end client ? The paper trail is between the client and the ISP only. There would have no reference to me or my ltd. All my contracts are reviewed by Bauer and Cottrell and deemed to be outside IR35 and I have legal insurance in place to cover any HRMC investigations.

I do not pretend there is no risk, just trying to quantify whether the risk can be managed to a sufficient level.

It seems to me that the risk is primarily for the supply chain above you, including the true end client (which is almost certainly not the ISP) and primarily when an actual investigation takes place, not before. I think the risk to you is comparatively low. But let's be clear, your description alludes to it being a sham arrangement to try and disguise the true end client:

My client has come back to me and said their hands are tied by their legal department however, they do not want to lose me and would i consider contracting via an Independent Management Service provider that is on the preferred suppliers list.

[Deepcut]

You really want to put 5 years retro tax on the line in the hope HMRC won't find you??

There are soon going to be 1000s of contractors that were outside IR35 that are now suddenly inside. Do you not think the half dozen admins they have hired will have their hands full working there way through that backlog before the get to me.

I'll be long retired to my villa in Spain before they even scratch the surface.

[ShandyDrinker]

There are soon going to be 1000s of contractors that were outside IR35 that are now suddenly inside. Do you not think the half dozen admins they have hired will have their hands full working there way through that backlog before the get to me.

I'll be long retired to my villa in Spain before they even scratch the surface.

Smile and wave boys... smile and wave.

[Deepcut]

It seems to me that the risk is primarily for the supply chain above you, including the true end client (which is almost certainly not the ISP) and primarily when an actual investigation takes place, not before. I think the risk to you is comparatively low. But let's be clear, your description alludes to it being a sham arrangement to try and disguise the true end client:

I think your assessment is spot on. To be honest I don't give a fig about the end client, they are the ones that proposed this. I was ready to walk.

[BR14]

so walk then.
what's the point of this thread if you're so cocksure about it?

[GhostofTarbera]

Deemed you inside IR35

Put aside 35% of each years gross income to cover back inside tax and penalty’s


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[Andy Hallett]

I'll be long retired to my villa in Spain before they even scratch the surface.

I was wondering why there is little public sympathy for contractors on this matter, thanks for clearing that u for me.

[Disguised Contractor]

Hi All,
I have been contracting with the same blue chip client for 5 years, I tend to get offered the high profile projects (the one's they can't afford the perms to tulip).

You have been found inside IR35, because you are inside IR35. You should have been made a permanent member of staff a long time ago.

You are exactly the kind of disguised employee that the contracting model was never intended to support, shouldn't have been (unless you have some extenuating circumstances such as extreme travel arrangements), and has now effectively killed a perfectly valid business model for the rest of us who believe ourselves to be effectively in business for ourselves, serving multiple clients a year, taking risk without obligation.

Thank you very much.

(Is this a troll question? I'm feeling trolled.)

[Drei]

You have been found inside IR35, because you are inside IR35. You should have been made a permanent member of staff a long time ago.

You are exactly the kind of disguised employee that the contracting model was never intended to support, shouldn't have been (unless you have some extenuating circumstances such as extreme travel arrangements), and has now effectively killed a perfectly valid business model for the rest of us who believe ourselves to be effectively in business for ourselves, serving multiple clients a year, taking risk without obligation.

Thank you very much.

(Is this a troll question? I'm feeling trolled.)

Agreed, I am pissed off at people like that, I don't like to be tied down so I may have multiple contracts in a year or just one. I also like to take longer time off. I don't usually stick longer than a year because tulip starts to stink and it feels like I am a permanent member of staff. Contractors are an expensive resource brought in to do the stuff that permanents can't do. If a project is longer than 2 years then you aren't a contractor and should be permanent. I don't make tulip loads of money because I like my work life balance, so being a contractor, working when I want for who I want was great. Now I can't because of people like you